European Energy signs long-term PPA with Mars for Skuodas wind project

 
Long-term virtual PPA signed for 161 MW wind project expected to generate around 490 GWh annually.

• European Energy signs long-term virtual PPA with Mars for most of the output from the 161 MW Skuodas wind project in Lithuania.
• Project expected to generate around 490 GWh of renewable electricity annually, corresponding to approximately 120,000 tonnes of avoided CO₂ emissions per year.
• Agreement includes bundled guarantees of origin linked to new-build wind capacity, with commercial operation planned for 2028.

Copenhagen, Denmark, 28th of April, 2026 – European Energy has entered into a long-term power purchase agreement (PPA) with Mars for most of the project’s annual generation. The project is expected to generate around 490 GWh per year, and the agreement includes bundled guarantees of origin.

Based on this expected annual generation, the project is estimated to avoid approximately 120,000 tonnes of CO₂ equivalent per year. The PPA provides long-term revenue security for the project and gives Mars Guarantees of Origin for new-build power capacity for its consumption in the region.

Skuodas Wind Farm will have an installed capacity of 161 MW. The project has not yet reached financial close, and the PPA is intended to support its commercial and financing structure. Commercial operation is planned for 2028.

The project will also support the Mars pet food manufacturing facility in Lithuania, providing a secure, long-term source of renewable electricity while reinforcing the site’s role as a key contributor to the company’s export performance.

“This agreement shows how companies like Mars are actively enabling new renewable generation. Through this collaboration, we are advancing the Skuodas wind farm and adding substantial new domestically produced capacity to Lithuania’s energy mix. It shows how corporate PPAs translate commitments into real infrastructure and strengthen national energy independence in Lithuania,” says Jens-Peter Zink, Deputy CEO of European Energy.

“We’re proud to partner with European Energy to help bring the Skuodas wind project to life. By working together on this long-term PPA, we’re not only securing renewable electricity for Mars operations and value chain in the region but also supporting new investment in Lithuania’s energy infrastructure,” said Kevin Rabinovitch, Global VP Sustainability at Mars.

“We’re also proud that our early involvement in Skuodas will help secure the project’s financing structure, providing the long-term certainty needed to unlock new renewable capacity. Through our Renewables Acceleration Program, we’re extending our impact beyond our own operations and directly scaling renewable energy across our value chain, bringing demand to the market faster and at greater scale.”

The agreement reflects the continued use of long-term corporate PPAs as a structuring tool for renewable energy investments and as a mechanism to support the development of new wind capacity in the Baltic region. It also reflects the ongoing expansion of renewable power generation in Lithuania, thereby reducing reliance on imported fossil fuels and strengthening the country’s energy independence.

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Ming Ou Lü

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miol@europeanenergy.com