Investor Presentation • May 23, 2023
Investor Presentation
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1/75 Ignitis Group │ 2023 May
This document has been prepared by AB "Ignitis grupė" (Ignitis Group) solely for informational purposes and must not be relied upon, disclosed or published, or used in part for any other purpose.
The document should not be treated as investment advice or provide basis for valuation of Ignitis Group securities and should not be considered as a recommendation to buy, hold, or dispose of any of its securities, or any of the businesses or assets referenced in the document.
The information in this document may comprise information which is neither audited nor reviewed by independent third parties and should be considered as preliminary and potentially subject to change. Therefore, no express or implied warranty is made as to the accuracy, correctness or completeness of the information and statements expressed herein, for any purpose whatsoever.
This document may also contain certain forward-looking statements, including but not limited to, the statements and expectations regarding anticipated financial and operational performance. These statements are based on the management's current views, expectations, assumptions, and information as of the date of this document announcement as well as the information that was accessible to management at that time. Statements herein, other than statements of historical fact, regarding Ignitis Group's future results of operations, financials, business strategy, plans and future objectives are forward-looking statements. Words such as "forecast", "expect", "intend", "plan", "will", "may", "should", "continue", "predict" or variations of these words, as well as other statements regarding matters that are not a historical fact or regarding future events or prospects, constitute forward-looking statements.
Ignitis Group bases forward-looking statements on its current views, which involve a number of risks and uncertainties, which may be beyond Ignitis Group's control or difficult to predict, and could cause the actual results to differ materially from those predicted and from the past performance of Ignitis Group. The estimates and projections reflected in the forward-looking statements may prove materially incorrect and the actual results may materially differ due to a variety of factors, including, but not limited to, legislation and regulatory factors, geopolitical tensions, economic environment and industry development, commodities and markets factors, environmental factors, finance-related risks as well as expansion and operation of generation assets. Therefore, you should not rely on these forward-looking statements.
In the event of any discrepancy between the Lithuanian and the English versions of the document, the English version shall prevail.
No responsibility or liability of any kind will be accepted by Ignitis Group, its affiliates, officers, employees, or agents for any loss or damage resulting from the use of this document or its contents. Unless required by the applicable law, Ignitis Group is under no duty and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
| 1. Business model | 4 |
|---|---|
| 2. Context | 8 |
| 3. Purpose | 12 |
| 4. Business segments | 15 |
| 4.1. Green Generation | 16 |
| 4.2. Customers & Solutions | 30 |
| 4.3. Reserve Capacities | 34 |
| 4.4. Networks | 36 |
| 4.5. Summary | 40 |
| 5. Sustainability | 42 |
| 6. People | 45 |
| 7. Financials | 48 |
| 8. Highlights | 54 |
| Annexes | 57 |
Renewables-focused integrated utility
| Sustainalytics | MSCI ESG | CDP climate | EcoVadis | |
|---|---|---|---|---|
| 19.9 (Low risk) |
AA (Leader) |
A- (Leadership) |
78 (Platinum) |
|
| Rank compared to utility peers |
Top 12% | Top 38%1 | B2 | Top 3%3 |
Validated GHG emissions targets for 2030 with the SBTi.
Implemented TCFD recommendations on climate related financial disclosure.
Reporting in accordance with the globally recognised GRI standards.
What drives our strategy?
Global contributors
Efforts to limit global temperature increase to 1.5°C to reach net zero by 2050 (Paris Agreement, 2015)
The main five sources of today's global greenhouse gas emissions are manufacturing, electricity, agriculture, transportation, buildings The EU aims to be climate-neutral by 2050 (European Green Deal, 2020) in line with the Paris Agreement.
Source: Climate Action Tracker (EU sets goal to be 'climate neutral' by 2050).
Included land use and forestry.
Source: United nations Framework Convention on Climate Change; and European Environment Agency.
Carbon Emission Prices, nominal, EUR/tonne 1
EU Fossil fuel based production, TWh 2
European Natural gas import from Russia, billion m3 3
EU electricity demand, TWh per annum EU electricity demand, TWh per annum 2
Green generation capacity targets Growing power-to-X capacities
The Baltic states and the Nordic countries will become substantial suppliers of both electricity and hydrogen for Central Europe (incl. Germany)
3. Purpose
100% green and secure energy ecosystem
Our purpose is to create 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).
Green Generation | Customers & Solutions | Reserve Capacities | Networks
Delivering 4 –5 GW of installed green and flexible capacities by 2030 with a focus on:
The Baltic states and Poland. We are also exploring new opportunities in other EU markets undergoing energy transition
Only ~1/3 of electricity consumption is covered by national generation. The country aims to become self-sufficient, therefore, a significant build-out of domestic generation assets is expected.
Coal generation represented >70% of the generation mix in Poland in 2022. This is expected to gradually decline and be replaced by renewable energy.
Around 63% of Estonia's electricity production in 2021 was from oil shale, and there is a growing need to develop new renewable capacities to cover the phase-out of oil shale.
The Baltics: terminated electricity imports from Russia & Belarus Electricity imports from Russia and Belarus were terminated regionwide following Russia's war in Ukraine. These imports are expected to be replaced by domestic renewables.
The European Commission has set out a plan to make Europe independent of Russian fossil fuels well before 2030. This will result in +680 GW of onshore wind and solar3 , and +85 GW of offshore wind4 capacity additions (by 2030 vs. 2022)
Sources: Company analysis based on Litgrid, Arena, European Commission, Ministry of Assets of Poland, Wood Mackenzie, Statistics Estonia, Eurostat, the Ministry of Energy of the Republic of Lithuania, ICIS and Volue.
Sources: Onshore solar https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD%3A2022%3A230%3AFIN&qid=1653033922121 (REPowerEU). Onshore wind: https://windeurope.org/intelligence-platform/product/financing-and-investment-trends-2022/ (page 39).
Source: Offshore:https://energy.ec.europa.eu/news/member-states-agree-new-ambition-expanding-offshore-renewable-energy-2023-01-19_en.
1. Installed capacities include: wind, solar, bio, hydro and battery assets.
2030: 4–5 GW1
Focus on offshore wind and onshore hybrid (wind+solar)
Offshore wind development is seen as the backbone of our Green Generation strategy. Therefore, strong emphasis is placed upon the necessary human and financial resources that will be required to be successful in the upcoming tenders.
Onshore we will focus on hybrid technology generation as this ensures higher utilisation of available grid capacities and a more stable generation profile.
Growth in renewables will lead to an increase in the demand for energy storage and balancing
| Batteries | short-term storage |
|---|---|
| Enable integration of renewables by facilitating demand management, helping improve grid reliability while limiting output curtailment. |
|
| Pumped-storage hydro Very large balancing capacities that enable future renewable energy growth in the region. |
middle-term storage |
| P2X technologies | |
| Potential solutions for attaining global climate goals and decarbonizing industry, transportation and power generation. |
long-term storage |
Strategy update | Strategic Plan 2023–2026 / Business Segments / Green Generation
We aim to secure 2 offshore wind development projects in the Baltics:
| 2023 Q1 | 2023 Q3 | 2023 Q4 | 2026 |
|---|---|---|---|
| Auction 0.7 GW |
Auction 0.7 GW |
Multiple auctions |
Joint auction |
| (Seabed and grid connection) |
(CfD, seabed and grid |
~7 GW | 1 GW |
| connection) | (Seabed only) | (Seabed and grid connection) |
Offshore wind capacity targets for the EU: at least 60 GW by 2030 and 300 GW by 20504
Hybrid technology generation ensures higher utilisation of available grid capacities and a more stable generation profile.
Hybrid technology generation is when energy sources are diversified, ensuring that green energy is available at most times. They are complimentary technologies as the generation is not synchronised. For example, solar and wind energy sources typically do not correlate, which means that we have energy from the sun when it is not windy and wind energy when it is not sunny. Relying on multiple energy sources rather than one is a fundamental aspect of an energy system based on renewable energy sources.
A hybrid energy generation ecosystem is great for the grid too. Better grid utilisation means lower transmission and distribution costs as well as more capacity for more renewable energy.
Enable integration of renewables by facilitating demand management, helping improve grid reliability, and limiting output curtailment.
Batteries have roles in a variety of markets – balancing, ancillary, frequency containment reserves and day-ahead arbitrage.
Rapid development of renewables in the region is increasing demand for balancing and grid services.
Targeting commercial-scale batteries by 2026.
Four operating units (4x225 MW) can perform up to 300 cycles1 per year.
The upper reservoir can hold around 48.7 million cubic metres of working water.
New 5th unit (1x110MW) will provide extra flexibility.
It will also allow us to provide more balancing and ancillary services.
All 5 turbines will be able to run at full load for ~10 hours.
Flexibility in generation mode: 0 – 1,010 MW (pre-expansion: 160 – 900 MW)
Flexibility in pump mode: 59 – 1,010 MW (pre-expansion: 220 – 900 MW)
5 th unit cycle efficiency of 82.5% (pre-expansion: 74%)
5 th unit max capacity reachable in 80 seconds (pre-expansion: 180 seconds)
Ignitis group's strategy is to pursue the development of a pilot project, leading to the full commercialization of Power-to-X technologies in the longer term.
Implementation of a hydrogen production and e-fuel conversion pilot project
Successful pilot project will pave the way to developing strategic partnerships and gaining resources for industry-scale hydrogen and e-fuel production capabilities
Methanol, synthetic methane and ammonia are usually referred to as key alternative e-fuels. With the implementation of renewable-source-based energy systems, energy conversion to hydrogen will gradually take place as a practical measure to absorb large amounts of surplus electricity.
Energy converted to hydrogen can be conveniently reverted to electricity for peak energy demand periods or for longerterm storage. It can be converted to other e-fuels when combined with carbon dioxide or nitrogen gas collected from fossil fuel sources or ambient air.
Hydrogen is expected to be used mainly as a short-term energy storage measure rather than as a direct fuel in transport or other sectors. Heavy industry or fertilizer activities may adopt green hydrogen as feedstock for production earlier.
E-fuels, however, are expected to be used directly in transportation, light industry activities or energy generation during peak demand periods to support other energy storage methods.
We partner with strategic investors to adopt new technologies or enter new markets
| Rationale | at this stage We partnered with Fortum (a leading WtE player) (negotiating) in 2015 to build Kaunas CHP |
|---|---|
| Structure | Ignitis (51%) and Fortum (49%) |
| Capacity | 24 MW electricity and 70 MW heat capacity |
| Investments | ~EUR 152m |
| Status | Kaunas CHP has been successfully completed and operational since 2020 |
| Partnership with Ocean Winds: adopting offshore wind technologies New potential pa |
|||||
|---|---|---|---|---|---|
| Rationale | rtnership (negoti In 2020 we partnered with Ocean Winds (OW) to participate in the first 700 ating) MW offshore wind auction in Lithuania. OW is a joint venture of EDP Renewables and Engie, leading energy companies in Europe which manage more than 30 GW of renewable energy sources globally. |
||||
| Structure | Ignitis (5%) and Ocean Winds (95%) | ||||
| Capacity | 700 MW | ||||
| Status | In preparation for bidding in the auction |
We utilise our supply portfolio to structure offtake agreements and enable Green Generation build-out
Offtake capabilities – sizeable uncovered supply portfolio creates a significant competitive advantage for Green Generation
High single-digit, low double-digit depending on the risk profile
Ignitis Group is able to capture additional value throughout the project execution stages
We intend to sell up to 49% of each project to recycle capital and capture value premium
Capital recycling, enabling faster growth
Capturing value premium by selling de-risked assets
Green Generation investments 2023–2026, EURbn
Green Generation capacity, GW
Home market: The Baltic States, Poland and Finland.
Customers B2B & B2C
1.4 million in 2022 The largest customer base in the Baltics
Expanding electricity supply portfolio to accelerate the green transformation of our customers
Targeting to reach ~50% market share of public EV charging infrastructure by 2026
We aim to optimize our retail gas supply portfolio to ~5.0 TWh in 2026 and have committed to reduce it further by securing the supply levels required for the security of the energy system during the energy transition period in Lithuania.
Speeding up the transition from gas to power Proactively promoting customers to move from gas to power.
Natural gas (retail)
Focus markets: Lithuania
Option to generate electricity in the market during low renewables generation /positive clean spark spread periods
1 In 2023, gas-fired capacity of 891 MW has been dedicated to isolated regime services. 2. Average availability of Elektrėnai Complex – (CCGT – 97.3%, Unit 7– 97.6%; Unit 8 – 99.2%). 3 Production volumes of electricity in Elektrėnai Complex in 2022 were low due to unfavourable market conditions (high gas prices). 4 Share from EBITDA, which was earned in Elektrėnai Complex.
Focus market: Lithuania
1.
The largest network in the Baltics, a natural monopoly for distribution services >99.5%1 of the Lithuanian market
In 2020, based on electricity distribution volumes (Source: NERC).
For 2022. WACC weighted average (for electricity and natural gas) and additional tariff component calculations are based on RAB for 2022.
Electricity network maintanance and other
Natural gas network
EURbn
journeys
Our purpose is to create a 100% green and secure energy ecosystem for current and future generations
41/69
Strategic priorities: decarbonisation, safety, employee experience, diversity and sustainable value creation
42/69
| Priority | Decarbonisation | Safety | Employee experience |
Diversity | Sustainable value creation |
|||
|---|---|---|---|---|---|---|---|---|
| Reduction of GHG emissions in accordance with science-based targets |
Zero fatal accidents |
Total recordable injury rate |
Employee overall experience3 |
Gender diversity in top management |
Sustainable investments |
Sustainable returns |
||
| 2026 strategic milestones and targets |
3.9 1 m t CO2 -eq -27%1 GHG emissions reduction (vs. 2020) |
0 fatalities of employees & contractors |
<1.75 <3.5 TRIR of employees & contractors |
≥50% employees promoting the Group as an employer (eNPS) |
≥35% share of women in top management positions |
>85–90% 4 share of CAPEX aligned to the EU Taxonomy (2023–2026) |
>75% sustainable Adjusted EBITDA share4 |
|
| 2022 2021 2020 |
-eq1 4.98m t CO2 -eq1 4.57m t CO2 -eq1 5.31m t CO2 |
3 (1 2) 0 (0 0) 0 (0 0) |
1.69 0.462 2.01 n/d 0.45 n/d |
61.8% 57.4% 56.0% |
23% 27% 28% |
89.5% (356 EURm) 71.3% (192 EURm) n/a |
74.6% (350 EURm) 63.1% (210 EURm) n/a |
|
| SDG contribution | ||||||||
| ESG contribution |
ENVIRONMENTAL | SOCIAL | GOVERNACE |
GHG emissions from Vilnius CHP are not included.
For the period: Jun-Dec 2022.
Experiences of employees in areas such as well-being, learning and growth, equal pay, diversity and inclusion, etc.
CAPEX and adjusted EBITDA from EU Taxonomy-aligned activities.
Strategy update | Strategic Plan 2023–2026 / Sustainability
Ignitis Group plans to halve its GHG emissions by 2030 – our near-term targets are aligned with a 1.5°C scenario and validated by the Science Based Targets initiative (SBTi).
As a result of a targeted approach, Ignitis Group anticipates significant reductions in emissions in both Scope 1 and Scope 3 compared to the baseline for 20201 .
We target net zero emissions by 2040–2050.
| Target value 2026 (vs. 2020)1 |
|
|---|---|
| GHG emissions intensity from power generation |
83 g CO2 -eq/kWh (-64%) |
| GHG emissions intensity from power generation and sold electricity |
143 g CO2 -eq/kWh (-44%) |
| GHG emissions not related to power generation |
0.44 m t CO2 -eq (-4%) |
| GHG emissions intensity from use of sold products |
0.9 m t CO2 -eq (-57%) |
Diverse team of energy smart people united by a common purpose
We are a diverse team of energy smart people united by a common purpose to create a 100% green and secure energy ecosystem for current and future generations
Take YOUR part in #EnergySmart!
RESPONSIBILITY PARTNERSHIP
Care. Do. For Earth. Starting with myself
Diverse. Strong. Together
See. Understand. Share. Open to the world
Curious. Bold. Everyday OPENNESS GROWTH
People Strategy
Contributing to Ignitis Group's purpose and strategic priorities by building a diverse team of energy smart people
Target returns, leverage and dividends
Strategy update | Strategic Plan 2023–2026 / Financials
EBITDA expected to reach EUR 470–550m in 2026, mainly driven by Green Generation
Adjusted ROCE, %
We expect to maintain
credit rating over the 2023–2026 period
We aim to grow our dividends to shareholders at a minimum 3% annual rate.
We also have the flexibility to distribute excess cash, if available.
Our purpose is to create a 100% green and secure energy ecosystem for current and future generations
The largest listed company in the Baltics
Renewables-focused: 4–5 GW of installed green and flexible capacity by 2030 (4x vs current 1.2GW)
Integrated business model: positioned to benefit from the largest customer portfolio, energy storage facility, network, and energy hub in the Baltics.
Leader in an attractive market: Baltics is the fastest growing region in the EU: GDP growth 2x EU's average1 , expected renewable capacity growth ~3x vs ~1.8x in EU2,3
ESG leader committed to net zero emissions by 2040–2050: placed among top rated European utilities according to multiple ESG ratings
Attractive blend of yield and growth: dividend yield of ~6-7%4 and Adjusted EBITDA growth of ~7-11%5
5-year (2018–2022) average Real GDP growth (source): EU-27 – 1.4%; Lithuania – 3.3%; Latvia – 2.3%; Estonia – 2.7%.
Sources: Company analysis based on Litgrid, Arena, European Commission, Ministry of Assets of Poland, Wood Mackenzie, Statistics Estonia, Eurostat, the Ministry of Energy of the Republic of Lithuania, ICIS and Volue. 3. Source: EU Long-Term Power Analytics – ICIS (2023).
Implied dividend yield (annual) over the 2023–2026 period. 5. CAGR, 2021–2026.
| Green generation installed capacity: | |
|---|---|
| - 2026 |
2.2–2.4 GW |
| - 2030 |
4.0–5.0 GW |
| Adjusted EBITDA, 2026 | 470–550 EURm |
| - of which a sustainable share, 2026 |
>75% |
| Average ROCE, 2023–2026 | 6.5–7.5% |
| Net Debt/Adjusted EBITDA, 2023–2026 | < 5x |
| Solid investment–grade rating (S&P), 2023–2026 |
BBB or above |
| minimum 3% | |
| Dividend policy | annual grow rate |
| Minimum DPS1 - , 2026 |
≥1.40 EUR |
| Dividend yield1 - , 2023–2026 |
6.3–6.9% |
| Science-based GHG emissions reduction (to align with 1.5 °C scenario | |
| alongside an explicit net-zero by 2040–2050 commitment): | |
| - 2026 vs. 2020 |
-27% |
| - 2030 vs. 2020 |
-47% |
| Total CAPEX, 2023–2026 | 2.2–2.8 EURbn |
|---|---|
| - of which a sustainable share, 2023–2026 |
>85–90% |
| Electricity supply portfolio, 2026 | ~10.5–10.9 TWh |
| Public EV charging network (charging points), 2026 | >3000 points |
| Electricity SAIFI: average 2023–2026 | ≤1.05 |
| Network digitalisation: # of smart meters in 2026 | >1.2 million |
| Average availability of Reserve Capacities, 2023–2026 |
>98% |
| Safety at work: - Fatal accidents of own employees and contractors, 2026 - Total recordable injury rate (TRIR) of own employees, 2026 - Total recordable injury rate (TRIR) of contactors, 2026 |
0 <1.75 <3.50 |
| Engaged employees, diverse and inclusive workplace: - Employee Net promoter score (eNPS), 2023–2026 |
≥50% |
| Diversity in top management: - Share of women in top management, 2026 |
≥35% |
Portfolio (23 May 2023)
Capacity, total: ~ 495.1 MWe (169 MWth)
Investments, total: ~ EUR 866 million7
| Project name |
Mažeikiai WF |
Vilnius CHP (biomass unit) |
Silesia WF I | Polish solar portfolio II |
Silesia WF II | Tauragė solar project |
Moray West offshore wind project6 |
Kruonis PSHP expansion |
|---|---|---|---|---|---|---|---|---|
| Country | Lithuania | Lithuania | Poland | Poland | Poland | Lithuania | The United Kingdom | Lithuania |
| Technology | Onshore wind | Biomass | Onshore wind | Solar | Onshore wind | Solar | Offshore wind | Hydro pumped storage |
| Capacity | 63 MW | 73 MWe, 169 MWth | 50 MW | ~ 40 MW | < 137 MW | 22.1 MW | 882 MW | 110 MW |
| Turbine / module / other type of unit manufacturer | 14 x 4.5 MW Nordex |
1 x 73 MWe Siemens; 2 x 84.5 MWth Rafako |
14 x 3.6 MW Nordex |
17 MW4 Jinko Solar |
38 x 3.6 MW Nordex |
22.1 MW Trina Solar |
60 x 14.7 MW Siemens Gamesa |
1 x 110 MW Voith Hydro |
| Investment | ~ EUR 80–85 million | ~ EUR 270 million1 | ~ EUR 75 million3 | ~ EUR 30 million | ~ EUR 240 million3 | ~ EUR 16 million | Not disclosed | ~ EUR 150 million |
| Revenue model | Internal PPA | Merchant | CfD | CfD / Internal PPA |
CfD / External PPA |
Internal PPA | CfD / External PPA |
Merchant |
| Proportion of secured revenue | 65% | 0% | 100% | 100% | 35% | 0% | 85% | 0% |
| Ownership | 100% | 100%2 | 100% | 100%5 | 100% | 100% | 5%6 | 100% |
| Partnership | n/a | n/a | n/a | n/a | n/a | n/a | Ocean Winds | n/a |
| Progress | ||||||||
| FID made | + | + | + | + | + | + | + | + |
| WTGs erected (units) / Solar modules & inverters installed (MW) / Other type of turbines or units installed (units) |
14 / 14 | 3 / 3 | 0 / 14 | 8 / 40 | 0 / 38 | 0 / 22 | 0 / 60 | 0 / 1 |
| First power to the grid supplied | + | - | - | - | - | - | - | - |
| Expected COD | Q2 2023 | Q3 2023 | Q1 2024 | 2023 – Q1 2024 |
H2 2024 | 2024 | 2025 | 2026 |
| Status | On track | On track | On track | On track | On track | On track | On track | On track |
Includes EU CAPEX grant for Vilnius CHP (i.e., waste-to-energy (operational since Q1 2021) and biomass units) which in total amounts to ~EUR 140 million.
49% to be divested post COD according to EU CAPEX grant rules.
Including project acquisition and construction works.
For the remaining capacity, the contract for the supply of modules has not yet been concluded with any manufacturer.
After full completion of construction works.
As the Group owns a minority stake of 5%, the project's capacity is not consolidated and is not reflected in the data of Green Generation Portfolio.
Excluding not disclosed investments.
Portfolio (23 May 2023)
Capacity, total: ~ 822 MW
Investments, total: ~ EUR 773 million
Portfolio (23 May 2023)
Investments, total: ~ EUR 410 million5
| Project name |
Latvian onshore WF portfolio I: Project 2 & 3 |
Plungė WF project | Lithuanian offshore WF (spring) | Greenfield portfolio |
|---|---|---|---|---|
| Country | Latvia | Lithuania | Lithuania | Lithuania, Latvia, Poland |
| Technology | Onshore wind | Onshore wind | Offshore wind | Onshore wind & solar |
| Capacity | ~ 90 MW | < 218 MW | 700 MW | ~ 1.8 GW3 |
| Investment | ~EUR 110 million1 | ~EUR 300 million1 | Not disclosed | Not disclosed |
| Ownership | 100%2 | 100%2 | 51% | 100% |
| Partnership | n/a | n/a | Ocean Winds | n/a |
| Progress | ||||
| Land secured | + | + | + | n/a |
| Expected COD | 2026–2027 | 2026–2030 | 2028-2030 | 2025–20304 |
| Status | On track | On track | On track | On track |
Including project acquisition and construction works.
After construction permits are granted or prior grid deposit is paid.
Secured land lease agreements for the development of the indicated capacity.
As the indicated capacity includes different projects, expected COD depends on the progress of individual projects. Additionally, Lithuanian projects should begin operations towards the end of the indicated time range.
Excluding not disclosed investments. 62/75
B2B B2C
2.91 2.57 3.86 5.15 7.71 6.77 2021 2022 2021 2022
2.84 2.55 6.09 7.4 2.62 2.86 11.55 12.8 +14% +10.8%
EV charging stations, # (Ignitis ON - own network/period end)
Electricity supply portfolio, TWh Natural gas supply portfolio, TWh
Wholesale Retail B2B Retail B2C
Option to exploit gas-fired generation assets during low renewables generation /positive clean spark spread periods
Largest Network in the Baltics, with a natural monopoly in both electricity and gas distribution services >99.5%1 of the Lithuanian market
reduction targets validated by the SBTi. We expect that the remaining emissions will not change significantly.
The projected effect of the validated targets on total Group emissions is a 47% reduction by 2030 (vs. 2020)1 .
| Target scope | Target value 2030 (vs. 2020) |
Emissions scope | Main reduction areas |
|---|---|---|---|
| GHG emissions intensity from | 15 g CO2-eq/kWh | Scope 1 (stationary combustion) + | Increasing green electricity generation capacity |
| power generation | (-94%) | biogenic emissions | Optimising consumption of resources necessary for operations |
| Increasing green electricity generation capacity | |||
| GHG emissions intensity from power generation and sold electricity |
27 g CO2-eq/kWh (-90%) |
Scope 1 (stationary combustion) + Scope 3 (sold electricity and heat) |
Developing solutions that support customer energy efficiency (e. g. implementation of smart metering for customers) |
| Increasing share of green electricity sold to customers | |||
| Increasing share of green electricity usage | |||
| GHG emissions not related to power generation |
0.34m t CO2-eq (-42%) |
Scope 1 + Scope 2 | Natural gas grid loss reduction |
| Replacing operational vehicle fleet with EVs | |||
| GHG emissions from use of sold products |
1.5m t CO2-eq (-25%) |
Scope 3 (sale of natural gas to end users) |
Promotion customer transition from gas to electricity |
-eq
Based on the strategic plan for 2023–2026 of the Ignitis group
| Strategic Priority | Objective | |||||
|---|---|---|---|---|---|---|
| Weight | Entry (70%) | Target (100%) (equal to maximum) |
||||
| Performance | TSR Group vs. average TSR of EURO STOXX® Utilities Index1 TSR of Ignitis |
40% | ≥70%2 | ≥100%2 | ||
| Returns | Average adjusted ROCE3 over the four years 2023–2026 |
20% | 6.5%2 | 7.5%2 | ||
| Growing renewables |
Green generation installed capacity4 , GW |
20% | 2.22 | 2.42 | ||
| Increasing Networks resiliency |
Average electricity SAIFI5 over the four years 2023–2026 (per annum) |
10% | ≤1.09 | ≤1.05 | ||
| Targeting net zero emissions |
GHG emissions reduction, 2026 vs. 20206 |
10% | -15%2 | -27%2 |
Gross installed capacity (COD reached), 2026.
Electricity SAIFI (System Average Interruption Frequency Index) is calculated based on the National Energy Regulatory Council methodology, excluding (1) interruptions due to natural phenomena corresponding to the values of natural, catastrophic meteorological and hydrological phenomena indicators; (2) interruptions due to failures in the network of the transmission system operator. Target objective is defined based on the decision of the National Energy Regulatory Council on January 26 of 2022 no. O3E-79.
Based on the Ignitis group GHG emissions level in 2020: 5.31m t CO2-eq. (excl. Vilnius CHP), targeted 2026 level: 3.9m t CO2-eq.
| Indicator | Definition |
|---|---|
| # | Number |
| % | Per cent |
| Adjusted EBITDA | EBITDA after eliminating items, which are non-recurring, and/or non-cash, and/or related to other periods, and/or non-related to the main activities of the Group, and after adding back items, which better reflect the result of the current period |
| B2B | Business to business |
| B2C | Business to consumer |
| CAPEX | Capital expenditure |
| CAGR | Compound Annual Growth Rate |
| CCGT | Combined cycle gas turbine |
| CfD | Contract for difference |
| CHP | Combined heat and power |
| CO2 | Carbon dioxide |
| COD | Commercial operations date |
| DPS | Dividend per share |
| eNPS | Employee Net Promoter Score |
| ESG | Environmental, social and corporate governance |
| EURbn | billion EUR |
| EURm | million EUR |
| EV | Electric vehicle |
| FA | Fatal Accidents |
| FIT | Feed-in tariff – fixed electricity purchase tariff |
| FIP | Feed-in premium – fixed premium to the electricity market price |
| GHG | Greenhouse Gas |
| Indicator | Definition |
|---|---|
| GRI | Global Reporting Initiative |
| GW | Gigawatt |
| Installed capacity | Where all assets have been completed and have passed a final test |
| Investments | Acquisition of property, plant and equipment and intangible assets, acquisition of shareholdings |
| IRR | Internal Rate of Return |
| MW | Megawatt |
| MWe | Megawatts electric |
| MWth | Megawatt thermal |
| Net debt/ adjusted EBITDA |
Leverage ratio, which shows the Group's ability to repay its debt from the profit earned. |
| PPA | Power purchase agreement |
| P2X | Power to X |
| RAB | Regulated asset base |
| ROCE | Return on Capital Employed |
| SAIFI/SAIDI | System Average Interruption Frequency Index/System Average Interruption Duration Index |
| SBTi | Science Based Targets initiative |
| SDG | Sustainable Development Goal |
| TCFD | Task Force on Climate-Related Financial Disclosures |
| TRIR | Total recordable injury rate: Total recordable injuries x 1 million hours worked divided by all hours worked during the reporting period. |
| TSR | Total Shareholder Return |
| TWh | Terawatt-hour |
| UN | United Nations |
| vs. | versus |
| WACC | Weighted average cost of capital |
| WtE | Waste-to-energy |
Ignitis Group │ 2023 May
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