After receiving its authorisation just one month ago, the fourth Eika Green Energy Fund (EGEF), managed by UAB Eika Asset Management (EAM), presents its first investments: solar parks in Lithuania and Cyprus. At the end of the first quarter of 2023, the first fund’s solar park in Lithuania will be launched in the village of Skirgailiai in the Alytus region’s Alovė eldership. The 3.8 MW solar park will be located on a 5.6 ha plot of land. A preliminary sale and purchase agreement has been concluded in Cyprus for a package of more than 10 solar parks totalling 30 MW. An investment of more than EUR 42 million is planned, with the first park expected to open in the second quarter of 2023 and all completed within 1.5 years.
EGEF’s first investments are 100% in line with the fund’s objective of sustainable investments that contribute to climate change mitigation. According to Viktorija Orkinė, CEO of EAM, solar parks are a priority investment for the fund. “Solar energy facilities can be developed much faster than wind or hydro. Therefore, given today’s electricity prices and demand, the fund aims to provide electricity buyers with an efficient way to stabilise electricity prices for the next 5 years as soon as possible. In both Lithuania and Cyprus, the demand for this energy exceeds the current supply, as electricity prices have more than tripled since January and future fixed-price contracts are currently being concluded for the lease of remote capacity,” explains Ms Orkinė.
In Cyprus, it costs around 30% more to develop a solar park than in Lithuania, but with as much as 60% more solar radiation compared to Lithuania and a higher demand for electricity in summer for premise cooling, higher returns are expected despite the higher investment. “In addition, we are working with reliable and experienced partners in Cyprus, so we feel very comfortable and confident entering a new market,” says Orkinė.
EGEF is currently considering acquiring solar parks in Lithuania, Latvia, and Italy. According to V. Orkinė, the fund is seeking cooperation with renewable energy developers in these countries and has also identified opportunities to invest in electricity storage technologies such as batteries and hydrogen. “Investors are welcoming the new fund because electricity prices are a hot topic all over Europe. Today it is three times cheaper to produce electricity from renewable sources than to buy it on the market, so all possible ways to stabilise the price of electricity look attractive. Renewable energy is also a sustainable investment with negative CO2 emissions, which adds a lot of value to the fund,” said the EAM manager, assessing investors’ expectations.