AB “Ignitis grupė” strategy update and Strategic plan 2023–2026 establish even more ambitious Green Generation and decarbonisation targets

On 23 May 2023 the Supervisory Board of AB “Ignitis grupė” (hereinafter – the Group) approved the updated strategy and Strategic plan 2023–2026 of the Group. In the updated strategy, the Group is reinforcing its commitments towards Europe’s decarbonisation and regional energy security. Our strategy also reflects more ambitious Green Generation targets.

The Group's purpose

The updated strategy introduces the updated purpose of the Group, which is creating a 100% green and secure energy ecosystem for current and future generations.

We fulfil our purpose by leading the regional transition into a climate-neutral, secure and independent energy ecosystem and contributing to Europe’s decarbonisation by facilitating renewable energy flows from Northern to Central Europe (incl. Germany).

By leading the regional transition in Lithuania and the Baltics, we strive to become one of the first 100% green energy systems in Europe.

By energy ecosystem we mean the combination of the multiple interdependent parties involved in the generation, consumption, transformation and transportation of clean energy (including industry, transport and heating).

Our purpose-driven priorities:

• Green. Growing green capacities.
• Flexible. Creating a flexible system that can operate on 100% green energy in the short, medium, and long term.
• Integrated. Utilising the integrated business model to enable green and flexible generation build-out.
• Sustainable. Maximising sustainable value.

Updated strategy

The updated strategy describes the Group as a renewables-focused integrated utility.

We are targeting to deliver 4–5 GW of green and flexible capacities by 2030 (instead of 4 GW, stated previously) by mainly focusing on offshore wind, onshore and solar hybrid as well as P2X and storage technologies.

We are targeting to reach net zero emissions by 2040–2050 (previously it was 2050).

Strategic plan 2023–2026

Key highlights:

• We are utilising our integrated business model to enable green and flexible generation build-out and benefiting from the largest customer portfolio, energy storage facility, network and energy hub in the Baltics.
• We aim to secure 2 offshore wind development projects in the Baltics: one project in Lithuania (COD until 2030) and one more project in our home market (COD post 2030).
• We are utilising and further expanding our customer portfolio to enable Green Generation build-out. Our electricity retail supply portfolio will reach 10.5–10.9 TWh by 2026 (it was 7.7 TWh in 2022).
• We are planning to build a leading EV public charging network in the Baltics with over 3,000 charging points, or 12 times more than in 2022.
• We are planning to utilise our reserve capacities to ensure the reliability and security of the electricity system. Over the 2023–2026 period, we will ensure at least 98% capacity availability.
• We are expanding a resilient and efficient network that enables electrification in Lithuania. We are expecting that the average annual SAIFI, interruptions per customer, over 2023–2026 will be below 1.05 compared to 1.18 in 2016–2020. Technological losses in the electricity network should also decrease and in 2023–2026 be ≤5.0%. We will continue the automation of the network, and the share of users connected to automated control lines in 2026 should reach around 63%. Additionally, we are planning to install over 1.2 million smart meters by 2026.

In 2023–2026 we are planning to invest EUR 2.2–2.8 billion. We plan to direct around 55% of the investments towards the development of green and flexible capacities in order to double the Green Generation installed capacity to 2.2–2.4 GW by 2026 compared to 1.2 GW in 2022. We are planning to direct around 45% of the investments towards the expansion of a resilient and efficient electricity distribution network.