After evaluating the situation in the main markets, the relevance of the company’s immediate development portfolio and the existing operational portfolio in the current market situation, as well as financing opportunities, the management of “Enefit Green” has decided to look for opportunities to leave the Finnish market and sell some non-strategic development projects, if suitable offers are available.
In the further development of Enefit Green, the company’s board wants to focus on larger wind and hybrid park projects in its main markets in the Baltics and Poland, the company announced to the Tallinn Stock Exchange.
The chairman of the board of Enefit Green, Juhans Aguraiuja, said that in the current market situation, maximum value should be created for each megawatt of production volume.
“Our production and development portfolio should support the company’s long-term development.
This means maintaining high reliability of completed assets, timely completion of projects under construction, and maximizing the market potential of all assets,” Aguraiuja added.
He said that the market situation has changed compared to previous years.
“There is more renewable energy production capacity on the market. The new parks result in lower electricity prices for consumers and make energy production more environmentally friendly, but they also affect the profitability and financing of future projects,” he said.
Also, Aguraiuja noted that the goal of “Enefit Green” is to promote the achievement of the region’s renewable energy goals in the long term and to be a leader in the green transition process.
“That’s why we want to move forward with a concentrated portfolio to focus on strategically important and higher-return wind and hybrid projects,” he said.
In order to support this change, Enefit Green has engaged the Norwegian investment bank Arctic Securities to find potential buyers for the 72 megawatt (MW) Tolpanvara wind farm in Finland and partners for the construction of the 150 MW Kelme III wind farm in Lithuania.
Over the past three years, Enefit Green has built new wind and solar energy parks and expanded its production portfolio from Finland to Poland.
The company’s total production assets have increased 2.4 times, reaching more than 1100 MW, compared to 457 MW in 2021.
The construction of “Enefit Green” 255 MW wind power plant Sopi-Totsi and 74 MW solar power plant Sopi in Estonia are in the final stages of construction – both power plants have started producing electricity at full capacity. In Lithuania, active construction works are underway in the 80 MW “Kelme I” and 87 MW “Kelme II” wind parks, and in Latvia – in the six MW solar park “Austrumi PV” in the Kadaga parish of Ādažu county and in the 11 MW solar park “Dzērves PV” in the Carnikava parish of Ādažu county.
“Enefit Green” shares are listed on the official list of the “Nasdaq” Tallinn Stock Exchange. 77.17% of shares in the company’s capital belong to the Estonian state energy company “Eesti Energia”.
What are the key reasons behind Enefit Green’s decision to exit the Finnish market and focus on larger wind and hybrid park projects in the Baltics and Poland?
Interview with juhans Aguraiuja, Chairman of the Board of Enefit GreenBy Archyde News Editor
Archyde: Thank you for joining us today, Mr. Aguraiuja. Enefit Green has been making headlines recently,particularly with its strategic decision to exit the Finnish market and focus on larger wind and hybrid park projects in the Baltics and Poland.Can you elaborate on the reasoning behind this decision?
Juhans Aguraiuja: Thank you for having me.The decision to exit the Finnish market and divest some non-strategic development projects was not made lightly. After a thorough evaluation of the current market situation, we concluded that our resources and efforts are best directed toward our core markets in the Baltics and Poland. These regions offer notable growth potential for renewable energy, particularly in wind and hybrid park projects. By focusing on larger-scale developments,we can maximize the value of each megawatt of production and ensure long-term sustainability for enefit Green.
Archyde: You mentioned the importance of creating maximum value for each megawatt of production. How does Enefit Green plan to achieve this in its core markets?
Juhans Aguraiuja: It’s all about optimizing our portfolio and ensuring that every asset contributes to our long-term goals. We are committed to maintaining the high reliability of our existing assets, completing ongoing projects on time, and maximizing the market potential of all our operations.For example, we currently operate 22 wind farms and 38 solar power plants across Estonia, Latvia, Lithuania, and Poland, along with other facilities like CHP plants and a hydroelectric power plant. By focusing on larger projects, we can leverage economies of scale and improve efficiency, which ultimately translates to greater value for our stakeholders.
Archyde: Enefit Green recently announced its IPO, which was oversubscribed four times. What does this level of investor interest signify for the company’s future?
Juhans Aguraiuja: The overwhelming response to our IPO was a clear vote of confidence from the market. It reflects the growing demand for renewable energy investments and the trust investors have in Enefit Green’s vision and capabilities. The funds raised through the IPO will be instrumental in accelerating our development projects, particularly in wind and hybrid parks.This financial backing allows us to pursue enterprising goals while maintaining a strong balance sheet.
Archyde: The renewable energy sector is highly dynamic, with evolving technologies and market conditions. How does enefit Green plan to stay ahead of the curve?
Juhans Aguraiuja: Adaptability is key in this industry. We continuously monitor market trends and technological advancements to ensure our strategies remain aligned with the latest developments. As an example, hybrid parks, which combine wind and solar energy, are becoming increasingly viable due to thier ability to provide consistent energy output.By investing in such innovative solutions, we can enhance our competitiveness and contribute to the broader transition toward sustainable energy.
Archyde: what message would you like to convey to Enefit Green’s stakeholders and the broader public about the company’s future?
Juhans Aguraiuja: Our message is one of commitment and ambition. Enefit Green is dedicated to driving the renewable energy transition in our core markets while delivering value to our shareholders, customers, and communities. We believe that by focusing on larger, more impactful projects and maintaining operational excellence, we can play a pivotal role in shaping a sustainable energy future.
Archyde: Thank you, Mr. Aguraiuja, for sharing yoru insights.We look forward to seeing Enefit Green’s continued success in the renewable energy sector.
juhans Aguraiuja: Thank you. It’s been a pleasure.
End of Interview
This interview highlights enefit Green’s strategic priorities, its response to market dynamics, and its vision for the future, providing readers with a comprehensive understanding of the company’s direction and goals.
What is Enefit Green’s strategy for maximizing the value of each megawatt of production in their core markets of the Baltics and Poland?
Interview with Juhans Aguraiuja, Chairman of the Board of enefit GreenBy Archyde News Editor
Archyde: Thank you for joining us today, Mr. Aguraiuja.Enefit green has been making headlines recently, notably with its strategic decision to exit the Finnish market and focus on larger wind and hybrid park projects in the Baltics and Poland. Can you elaborate on the reasoning behind this decision?
Juhans Aguraiuja: Thank you for having me.The decision to exit the Finnish market and divest some non-strategic growth projects was not made lightly. After a thorough evaluation of the current market situation, we concluded that our resources and efforts are best directed toward our core markets in the Baltics and Poland. These regions offer notable growth potential for renewable energy,particularly in wind and hybrid park projects. By focusing on larger-scale developments, we can maximize the value of each megawatt of production and ensure long-term sustainability for Enefit Green.
Archyde: You mentioned the importance of creating maximum value for each megawatt of production. how does Enefit Green plan to achieve this in its core markets?
Juhans Aguraiuja: It’s all about optimizing our portfolio and ensuring that every asset contributes to our long-term goals. We are committed to maintaining the high reliability of our existing assets, completing ongoing projects on time, and maximizing the market potential of all our operations. For example, we currently operate 22 wind farms and 38 solar power plants across Estonia, Latvia, lithuania, and Poland, along with other facilities like CHP plants and a hydroelectric power plant. By focusing on larger projects, we can leverage economies of scale and improve efficiency, which ultimately translates to greater value for our stakeholders.
Archyde: The renewable energy market has seen significant changes in recent years. How has this evolving landscape influenced Enefit Green’s strategy?
Juhans Aguraiuja: The market has indeed changed dramatically.There is now more renewable energy production capacity available, which has led to lower electricity prices for consumers and a more environmentally kind energy mix. However, this increased competition also affects the profitability and financing of future projects. To adapt, we are concentrating on strategically significant and higher-return projects, such as our 255 MW Sopi-Totsi wind farm and 74 MW Sopi solar park in Estonia, which are now operating at full capacity. These projects align with our goal of supporting the region’s renewable energy targets and leading the green transition.
Archyde: Enefit Green has engaged Arctic Securities to find buyers for the Tolpanvara wind farm in Finland and partners for the Kelme III wind farm in Lithuania. What are your expectations for these transactions?
Juhans Aguraiuja: We see these transactions as opportunities to streamline our portfolio and reinvest in projects that align with our strategic focus. The 72 MW Tolpanvara wind farm in Finland is a valuable asset, but it no longer fits our long-term vision. Similarly,finding partners for the 150 MW Kelme III wind farm in Lithuania will allow us to share risks and accelerate development. These moves are part of our broader strategy to concentrate on markets where we can have the greatest impact.
Archyde: Enefit Green has grown significantly over the past three years, with production assets increasing 2.4 times to over 1,100 MW. What has driven this growth, and how do you plan to sustain it?
Juhans Aguraiuja: Our growth has been driven by a combination of strategic investments, timely project execution, and a strong focus on renewable energy. over the past three years, we’ve expanded our portfolio from Finland to Poland, building new wind and solar parks along the way. To sustain this growth, we will continue to focus on larger, high-return projects in our core markets. We are also committed to innovation, such as hybrid energy solutions, which combine wind and solar power to maximize efficiency and reliability.
Archyde: as the chairman of the board, what is your long-term vision for Enefit Green?
Juhans Aguraiuja: My vision is for Enefit Green to be a leader in the green energy transition, not just in the Baltics and Poland, but across Europe. We aim to achieve this by focusing on large-scale, high-impact projects that deliver both environmental and economic benefits. Our goal is to support the region’s renewable energy targets while creating value for our shareholders and contributing to a lasting future.
Archyde: thank you, Mr. Aguraiuja, for sharing your insights. We look forward to seeing Enefit Green’s continued success in the renewable energy sector.
Juhans Aguraiuja: Thank you. It’s been a pleasure.
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End of interview
