The European Investment Bank has finalised its financial backing for the Kelmė wind farm in Lithuania, closing an additional USD 174 million loan to Ignitis Group (renewables-focused integrated utility) that brings the institution's total commitment to the project to USD 290 million.

The new tranche follows an initial USD 116 million loan provided by the EIB in the previous year and represents nearly half of the overall USD 638 million investment in what is now the largest operating onshore wind facility in the Baltic states.

A Flagship Project Reaches Full Operation

The Kelmė wind farm, developed by Ignitis Renewables, reached full commercial operation in June 2025. Located in the west of Lithuania in Kelmė County, the facility carries an installed capacity of 314 megawatts. According to the EIB, this output is sufficient to power 250,000 Lithuanian households.

The project was constructed in two phases, with the first phase delivering approximately 105 megawatts of installed capacity and the second phase contributing an additional 195 megawatts on an adjacent site. Both phases include ancillary infrastructure such as grid connection works.

The scale of the Kelmė site marks a significant addition to Lithuania's domestic renewable electricity generation, and the EIB has stated that the project has materially strengthened the country's energy security while reducing its reliance on imported energy.

Structure of EIB Support

The total EIB financing package of USD 290 million is structured across two separate loan agreements with Ignitis Group. The first loan of USD 116 million was extended in the prior year, and the newly completed USD 174 million loan brings the cumulative institutional commitment to its final figure. Together, these two tranches account for approximately 45 percent of the project's total capital requirement of USD 638 million.

EIB Vice-President Karl Nehammer underscored the strategic rationale behind the financing. "Our support highlights how strategic investments in renewable energy can deliver both energy security and economic resilience for Lithuania," Nehammer said. "Projects like this help ensure stable, affordable, and domestically produced electricity for the future."

Ignitis Group's Strategic Framing

Ignitis Group Chief Financial Officer Jonas Rimavičius described the completed financing as a reflection of the sustained relationship between the group and the EIB.

"The additional EIB financing reflects continued confidence in Ignitis Group's strategy and our long-term partnership with the European Investment Bank," Rimavičius said. "Access to capital at this scale is essential to expand domestic green generation and strengthen the regional energy system."

Rimavičius also pointed to the broader significance of institutional partnerships in the energy transition. "It also highlights the role of long-term partnerships with international financial institutions as a key enabler in delivering a secure and green energy ecosystem across the Baltic region," he added.

Ignitis Group describes itself as a leading integrated energy group in the Baltic region with operations across the Baltic states, Poland, and Finland. The group holds what it characterises as the largest network, energy storage capacity, and customer portfolio in the Baltics.

Subsidy-Free Renewable Generation and EU Policy Alignment

The Kelmė wind farm is noted by the EIB as delivering large-scale renewable energy on a subsidy-free basis. The project is cited as contributing to the European Union's REPowerEU objectives, which are aimed at reducing dependence on imported fossil fuels and accelerating the deployment of clean energy across member states. The EIB has positioned the Kelmė investment as supporting the transition to a low-carbon economy across the Baltic region more broadly.

The REPowerEU programme was established in the wake of disruptions to European energy markets and has since served as a framework for directing institutional financing toward renewable generation capacity across EU member states.

EIB's Expanded Footprint in Lithuania

The Kelmė financing forms part of a wider increase in EIB activity in Lithuania. The institution states that it stepped up its support for the country in 2025, providing USD 669 million in financing focused on defence, energy and infrastructure. That financing is described as helping to mobilise USD 1.62 billion in total investment and supporting over 17,000 jobs.

The EIB Group, which is owned by the 27 EU member states and functions as the financing arm of the European Union, reported signing USD 116 billion in new financing and advisory services globally in 2025, covering more than 870 projects across eight core priority areas.

Those areas include climate action and the environment, digitalisation and technological innovation, security and defence, and social infrastructure, among others.

Baltic Energy Security Context

The completion of EIB financing for the Kelmė wind farm comes as Baltic states have placed increasing emphasis on domestic energy production and grid independence.

Lithuania and its Baltic neighbours have been working toward synchronising their electricity grids with Continental European networks, and investments in large-scale domestic generation capacity such as Kelmė are part of efforts to reduce vulnerability to external energy supply disruptions.

The Kelmė facility's position as the largest operating onshore wind farm in the Baltic region gives it particular significance within the regional energy landscape. With a generation capacity sufficient to serve a quarter of a million households, the project represents a material shift in Lithuania's renewable energy output and its capacity for energy self-sufficiency.

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