2021–2024 Strategic Plan has been approved
2021–2024 Strategic Plan of AB “Ignitis grupė” group of companies has been approved
On 25 February 2021 the Supervisory Board of AB “Ignitis grupė” (hereinafter – the Company) approved the Strategic Plan for 2021–2024 (hereinafter – Strategic plan) of the Company’s group of companies (hereinafter – the Group), which establishes the Group’s ambition to focus mainly on the Green Generation investments and Network modernisation and digitisation in the following years. The Strategic Plan describes the implementation of priorities and directions of the updated long-term strategy of the Group, which was announced in June 2020, for the period of 2021–2024.
- It is estimated that the Group’s adjusted EBITDA in 2024 will reach EUR 350–390m. Average annual EBITDA growth during 2020–2024 is estimated to be 4.7–7.5% – it will be mostly affected by growth in Green Generation segment
- The Group over the period of 2021–2024 is planning to invest EUR 1.7–2.0bn
- EUR 0.8–1.0bn of investments will be directed towards Green Generation segment, in order to increase the installed green generation capacity to 1.8–2.0 GW by 2024
- Investments into network digitisation and service quality and increasing network efficiency and resilience over 2021–2024 will reach EUR 0.8–0.9bn
- The Company is committed to its shareholders to ensure at least 3% annual increase in dividends
- Over the period of 2021–2024 net debt and adjusted EBITDA ratio is expected to be less than four times, the investment-grade BBB+ rating will also be maintained
- The Group has integrated the environmental, social, and corporate governance (ESG) principles in its objectives
Objectives promoting sustainable growth
The Group is planning to invest EUR 1.7–2.0 billion over the period of 2021–2024 in green generation development projects, new customer connections, modernisation and upgrades in the electricity distribution network and smart metering programme. 85–95% of the investments are directed towards the implementation of projects which are directly or indirectly related to the United Nations Sustainable Development Goals (SDGs).
45–50% or EUR 0.8–1.0 billion of investments will be directed towards the Green generation segment – this will allow to increase the installed green generation capacity to 1.8–2.0 GW by 2024. The current Group’s total installed capacity reaches 1.1 GW.
The Strategic Plan also established an aim to ensure the digitisation of networks as well as to increase the service quality, network efficiency and resilience, which will condition the energy transition. The investments into the Network segment will reach EUR 0.8–0.9 billion or 45–50% of total planned investments by the Group in 2021–2024.
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