Litgrid AB

Earnings Release • Mar 18, 2022

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author: Adverum
date: 2022-03-18 11:43:00+00:00

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Press release

18 March 2022

Vilnius

Litgrid: the goals that were achieved in 2021 ensure the security of the electrical system

Lithuanian electricity transmission system operator Litgrid has published a set of audited financial statements and an annual report for the previous year. In 2021, the company has successfully achieved the goals of reliability of electricity supply and of the implementation of strategic projects, ensuring electricity security in the country.

‘One of the most important works of the last year - the completed project of expanding LitPol Link - Lithuania's connection with Poland. The preparation of a synchronous electricity connection with mainland Europe constitutes the result of the implementation of this project. After completing the project, we have successfully completed the test of aid from the Polish system and ensured that, if necessary, the strategic partners in Poland will help us. These works, along with other achievements in the implementation of strategic projects, allow us to boldly say, at this point, that the security of the Lithuanian electricity transmission system has been ensured. Of course, we have to move on: this year, we continue other important synchronization projects, including the submarine connection with Poland Harmony Link, and installation of synchronous condensers. We will perform a test of the isolated operation of the entire Lithuanian electricity system, will for the first time manage independently all the indicators of the system, including frequency. All these things bring us increasingly closer to fully-fledged connection to the electricity system of the countries of continental Europe’, - says Rokas Masiulis, CEO of Litgrid.

According to him, ensuring security of electricity supply is among other important goals that have been achieved by Litgrid in 2021: the key indicators were not only in line with the goals pursued, but were also better than in 2020. Last year, the average duration of interruptions, which are the responsibility of the operator, was 0.112 minutes, compared to 0.209 minutes in the year before the last. Meanwhile, the amount of energy not transmitted was 3.356 MWh, compared to 6.213 MWh in 2020. The company has also implemented restrictions on electricity produced in Belarus, thus preventing electricity generated in Astravets Nuclear Power Plant from entering Lithuania.

‘In preparation for synchronization, we carry out in parallel research and projects, which lay the foundation for energy of the future. We are preparing for the integration of offshore wind into the Lithuanian transmission network, also for development of energy from other renewable sources. Last year, we were also the first in the Baltic States to connect a pilot 1 MW battery to the electricity transmission network, and have tested its possibilities not only in balancing electricity generation and consumption, but also in performing a number of other functions. The tests have shown that we can integrate powerful energy storage devices into the system and thus achieve both the goals of energy security and wider goals of the use of renewable resources’, - says R. Masiulis.

Achieved goals

In 2021, Litgrid has completed three synchronization projects - extension of LitPol Link connection, optimization of the north-eastern electricity grid of Lithuania, and emergency connection to Poland. A total of 6 out of 20 projects have been completed so far, or more than 40 percent of all work required for synchronization. The Baltic countries plan to connect to the synchronous zone of continental European in 2025. After EU countries have approved earlier this year the award of grants of 170 million euros, total support for synchronization exceeded 1.2 billion euros.

Last year, Litgrid has also signed a contract for the purchase and installation of three synchronous condensers. These devices are designed to ensure reliable network operation when a large part of electricity used in the system is generated in renewable-energy power plants or is received via direct current connections.

Financial results

According to the audited data, in 2021, the revenue of Litgrid amounted to 270,6 million euros and was 30 percent higher than in 2020. The earnings of the company before interest, tax, depreciation and amortisation (EBITDA) amounted to 46.2 million euros - 11 percent lower than in 2020. The net profit of the company amounted to 20 million euros, and was 25 percent lower than in 2020.

The increased market electricity prices and the costs of electricity compensation in technological network installations, which have increased as a result, had the greatest impact on the company results.

In 2021, investment of Litgrid amounted to 53.1 million euros, of which 64 percent were allocated for the implementation of strategic and nationally important electricity projects, 36 percent – for the reconstruction and development of the transmission network, and for the support of the network operation.

About Litgrid:

Litgrid AB, which is the Lithuanian electricity transmission system operator, supports the stable operation of the country's electricity system, manages electricity flows, and creates the conditions for the functioning and development of a competitive electricity market. The company manages in Lithuania more than 7 thousand kilometres of overhead lines, more than 200 transformer substations and 17 interconnection lines with other countries, maintains them on a continuous basis in order to ensure the proper transmission of electricity to all residents, institutions and other organisations of the country.

From 22 December 2010, the shares of Litgrid AB are listed on the Supplementary List of the NASDAQ OMX Vilnius Stock Exchange. 97.5 percent of the shares of Litgrid AB are owned by EPSO-G UAB, and 100 percent of the shares of the latter belong to the Ministry of Energy of the Republic of Lithuania.