Ignitis Group announces an ambitious Strategic Plan 2024–2027 to double the green capacities with major investments

• Investments: EUR 3.0–4.0 billion over the 2024–2027 period, an increase of around EUR 1 billion over the strategic period. 

• The majority of investments (EUR 1.8–2.4 billion) will be directed towards doubling the Green Capacities (formerly known as Green Generation) portfolio and building new capacity projects that start operating after 2027.

• 1/3 of the investments will be used to expand the electricity distribution network.

• The 3M 2024 period was marked with continued Green Capacities Portfolio growth. 

AB “Ignitis grupė” (Ignitis Group), a renewables-focused integrated utility, is accelerating its investments and plans to double its Green Capacities by 2027. Building on the ongoing energy transition, the Group aims to deliver the benefits of renewable energy to its customers in the Baltics and Poland.

The company announced a Strategic Plan 2024–2027 with an emphasis on further investment growth, focused on development of green generation and green flexibility capacities as well as expansion of the distribution network to enable green transition and cope with the increasing electrification of various sectors. 

“We are at the forefront of a historic transition of the energy sectors in our home markets and a significant driving force behind these changes. While taking advantage of any emerging opportunities, we also remain committed to our purpose to create a 100% green and secure energy ecosystem for current and future generations. In line with our strategy, we are steadily expanding our Green Capacities, which are the main enablers of a climate-neutral energy system,” says Darius Maikštėnas, CEO of Ignitis Group.

The key highlight of the strategic plan is the significant increase in investments planned for the 2024–2027 period. By 2027, the total investments should reach EUR 3.0–4.0 billion, which is an increase of around EUR 1 billion compared to the previous 4-year strategic period. 

61% or EUR 1.1–1.3 billion of the investments will be dedicated to expanding the green generation and green flexibility technologies. The remaining 33% (or EUR 1.1–1.3 billion) will be directed towards developing the electricity distribution network in Lithuania.

The Group is targeting to deliver 4–5 GW of installed Green Capacities by 2030, focusing on the green generation and green flexibility technologies, including onshore and offshore wind, battery energy storage system (BESS), pumped-storage hydro and power-to-X. 

Currently, the Group’s Green Capacities portfolio amounts to 7.4 GW with 2.9 GW already secured. By 2027, Ignitis Group aims to achieve a total installed capacity of 2.4–2.6 GW, representing a two-fold increase from 1.3 GW in 2023. 

A major component of this growth will be related to developing onshore wind farms across the Baltics and Poland, targeting a capacity of at least 700 MW by 2027. 

The Group also plans to continue developing complementary technologies, including solar, where they add value. The target is reaching a total installed solar capacity of around 400 MW by 2027.

To meet these targets, Ignitis Group is expanding its renewable energy branch and is expecting to increase the number of employees at Ignitis Renewables 3.5 times by 2027.

The rapid expansion of installed renewable capacity drives the need for green flexibility solutions. Therefore, the Group is implementing a pumped-storage hydro expansion project in Kruonis (Lithuania), which should be completed by 2026, adding 110 MW to the current 900 MW. The Group is also targeting commercial-scale batteries by 2027 and implement a green hydrogen and e-fuel production pilot project. 

The Group is ready to connect the growing number of new customers to the distribution network and further expand the capacity of Lithuania’s electricity distribution network to enable green transition and to meet the increasing electrification-related demand.  

By growing its customer portfolio and focusing on supplying the green electricity, the Group expects to significantly increase the amount of supplied electricity, from 6.7 TWh in 2023 to 9.0–11.0 TWh by 2027. Building a leading EV charging network in the Baltics and expanding across public, commercial and home charging segments. EV network will become a significant offtaker of green electricity in the future.

The main Ignitis Group’s sustainability goal is reducing the carbon intensity of its scope 1 & 2 greenhouse gas (GHG) emissions by 20–40% by 2027 (from the 2023 baseline). The decarbonisation pathway, which is aligned with the Group’s business ambitions, will be achieved by expanding the green generation and green flexibility capacities and increasing the use of the green electricity generated by the Group in its operations.

The increasing supply of electricity generated from renewable energy sources will allow the Group’s customers to reduce their carbon footprint. The company expects 30% of the electricity it supplies to originate from renewable energy sources by 2027 (17% in 2023).

According to its strategic plan, the Group’s adjusted EBITDA in 2027 should be around EUR 550–650 million compared to EUR 484.7 million in 2023. The average adjusted ROCE level in 2024–2027 is expected to reach 6.5–7.5%. The Group also expects to maintain its credit rating of ‘BBB’ and above over the 2024–2027 period.

The Group remains committed to at least 3% annual dividend growth, representing a 7.3–8.0% implied dividend yield in 2024–2027.

The Group approved the long-term objectives and performance targets for the 2024–2027 period that determine a long-term variable part of remuneration for key executives. Details of the long-term incentive plan objectives are available in the Strategic Plan annexes and online (link).

Ignitis Group reports strong results in 3M 2024 with continued Green Capacities portfolio growth

Ignitis Group publishes its first three months 2024 interim report, which is attached to this notice, and announces that the Group’s adjusted EBITDA amounted to EUR 181.7 million (+21.2% YoY). Growth was recorded across all business segments, except Reserve Capacities. Customers & Solutions segment electricity B2C activities continued to be loss-making (EUR -8.2 million). The Green Capacities segment remains the largest contributor with a 42.4% share of the Group’s total adjusted EBITDA. 

The Group’s investments grew by 73.4% YoY to EUR 209.5 million. Two thirds of the total investments were directed towards the Green Capacities segment, 90.5% – in Lithuania. The investments into Green Capacities have tripled and reached EUR 138.9 million, with the majority directed towards new onshore wind farms.

In 3M 2024, Ignitis Group increased its Green Capacities portfolio to 7.4 GW (from 7.1 GW) and installed capacity to 1.4 GW (from 1.3 GW). The secured capacity stood at 2.9 GW. 

In Networks, the total number of installed smart meters has exceeded 836 thousand.

In Customers & Solutions, the Group continues to expand the EV charging network in the Baltics, with multiple locations secured for the installation of 67 EV charging points.

Key financial indicators (APM1)