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Amber Grid Investor Presentation 2025
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EPSO group strategy 2035 Amber Grid
2
TABLE OF CONTENT
- Amber Grid in brief
- Strategic context
- Mission and commitments
- Strategic framework and strategic pursuits
- Key enablers
- Strategic roadmap & KPIs
- Financial outlook
- Value for Lithuania
LEGAL DISCLAMER
The statements and indicators outlined in this document are expectations for the future. The information provided is based on the current knowledge, expectations, and assumptions of the "EPSO-G" group of companies (hereinafter – the Group), including Amber Grid, regarding future events and trends that may affect Amber Grid operations.
Forward-looking statements include information about Amber Grid expected performance, business strategies, contractual relationships, competitive environment, operating conditions, potential growth opportunities, future regulatory impacts, competitive effects, and similar matters. Although Amber Grid believes the estimates and forecasts presented are reasonable, there are risks, uncertainties, and other significant factors beyond the Company control. These could cause actual results or achievements to differ substantially from those planned.
The realization of the goals set forth in this document may be influenced by changing legal requirements, cost-benefit analyses, and other research findings. Investment volumes and financial forecasts have been calculated based on the information currently available to Amber Grid future decision-making may change in response to external circumstances beyond the control of the Amber Grid. The strategy is reviewed annually and updated as needed.
Amber Grid, its officers and employees are not liable for any damage incurred through the use of this document or its content.
Amber Grid is not obligated to update or revise any forward-looking statements due to new information, future events, or other circumstances, except as required by law.
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WE ARE CREATING THE FUTURE OF LITHUANIAN ENERGY
We are participants of global energy changes. Global energy trends are changing rapidly, and energy transformation is gaining momentum in Lithuania. The National Energy Independence Strategy outlines a clear direction - to provide ourselves with energy resources, develop high-value exports, ensure energy security, a climate-neutral economy, so that energy changes reach all consumers.
Amber Grid sees itself as a reliable partner on this path of change, creating a hydrogen network, a carbon dioxide ecosystem, further actively developing green gas connection to the transmission network, developing markets and strengthening relationships with existing and future customers.
Looking to the future, we must also take care of the present. We can see that for more than a decade gas will be an important energy resource both to the Lithuanian market and to a regional and European scale. Well-developed infrastructure and international flows oblige us as strategic partners to take care of our customers, the gas transmission system, its security, anticipate possible threats, protect and educate communities living close to gas networks.
In the updated Amber Grid strategy, together with the companies of the EPSO-G group, we have refined the common mission of the group - to accelerate energy independence and enhance system security, the vision - to enable the transformation of the energy industry while simultaneously safeguarding national security interests. In order to achieve our goals, we defined the main directions - to drive future infrastructure, to provide reliability and security, to be vital and skilled strategic partner. We use a variety of enablers to achieve strategic change and goals: financing, innovation and digitization, partnerships, asset development and management, and improving supply chains and procurement.
We are already preparing for changes in the energy system - we would not be able to implement them without the basis of our organization and the main enablers - our people. We are already educating employees to develop new infrastructure, we are raising competences of green energy technologies, we are cooperating with international partners in creating a common European hydrogen network, and we are participating in energy initiatives.
We believe that by joining forces with our partners, the Group's companies, we will successfully develop a dynamic energy sector, contributing to the creation of economic benefits for our country and Europe.
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Amber Grid
01
AMBER GRID IN BRIEF
6
OUR CORE BUSINESS
IS ESSENTIAL FOR THE ENERGY TRANSITION AND SECURITY OF SUPPLY
WE ARE THE OPERATOR OF THE LITHUANIAN NATURAL GAS TRANSMISSION SYSTEM, RESPONSIBLE FOR THE TRANSMISSION OF NATURAL GAS TO CONSUMERS, OPERATION, MAINTENANCE AND DEVELOPMENT OF THE INFRASTRUCTURE.
Key figures in 2023
| 345 employees | 82 M Eur revenues | 25 M Eur EBITDA¹ |
|---|---|---|
| 9 M Eur adj. net profit¹ | 15 TWh transported for domestic needs | 46 TWh transported to adjacent systems |
¹ Regulated revenue, expenses and profitability indicators are recalculated due to temporary regulatory deviations from the regulated profitability indicator approved by the Council, revaluation of non-current assets and other gain/loss from non-ordinary activities.
Transmission infrastructure
We deliver and manage critical infrastructure to enable secure and sustainable energy
System operation
We ensure safe and reliable operation of an integrated energy system
Market development
We facilitate market conditions through creation infrastructure interconnections and transparent rules for market functioning
Guarantees of origin
We facilitate favorable conditions for the development of gas produced from RES
WE ARE PART OF THE STATE-OWNED ENERGY TRANSMISSION AND EXCHANGE GROUP EPSO-G
EPSOG
Lithuania's electricity TSO
Amber Grid
Lithuania's gas TSO
ENERGY CELLS
Energy storage system operator
Getboltic
Minority shareholder of natural gas exchange
TETAS
Electricity network construction and maintenance
EPSOG
Project management and investment
Baltpool
Biomass and timber exchange
TSO Holding
Minority shareholder of Nord Pool power exchange
Our people
Ensure energy security of Lithuania
Ensure integrated and efficient management of operations
Enable implementation of Lithuania's and the European Union's sustainable energy strategies
7
WE HAVE ENABLED
A SUSTAINABLE AND EFFECTIVE ENERGY EXCHANGE AND SECURED SOLID GROUND FOR THE ENERGY TRANSFORMATION
SOLID COMMITMENT TO SUSTAINABILITY
in enabling a climate-neutral energy transition and creating a progressive and sustainable organisation
ACCELERATING RENEWABLE ENERGY
by providing clear conditions and processes for biomethane producers to access the system and participate in the RES market
INTERCONNECTING ENERGY SYSTEM
integrated with EU gas markets
CREATING ENERGY EXCHANGES
scaled-up in the region with gas exchange
SOLID TRACK RECORD IN EXECUTING LARGE PROJECTS
We aim to strengthen the gas transmission system. Over the past years, we implemented important strategic projects for the country and the region. In this way, we ensure the security of the country, reliable gas transmission to both Lithuania and the Baltic region. Using EU support, we applied innovative solutions in the gas system and modernized it.
Klaipėda-Kuršėnai 2015
The gas pipeline for enabling diversification of gas sources for Baltics
GIPL - 2022
The gas pipeline between Lithuania and Poland
ELLI - 2022
The Enhancement of Latvia-Lithuania interconnection
21 project 2016-2023
of system reconstruction and modernization co-financed from ERDF
We implement
national
sustainability,
independence and
security goals
Amber Grid
02 STRATEGIC CONTEXT
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THE ENERGY TRANSFORMATION OF THE BALTIC STATES LAYS THE FOUNDATION FOR INTEGRATED GROWTH IN GREEN ENERGY AND INDUSTRY
Annual new wind and solar capacity installation per capita in selected European countries from start 2020 to end 2023 (kW/cap)*
2020–2023 m.
Regional trends
- The Baltic region is currently the leader in Europe for Renewable Energy Sources (RES) capacity additions per capita
- The greatest concerns are threats to regional security, supply chain issues, and volatile commodity prices, but these are offset by a stable policy promoting RES
- Regional cross-border integration, new transmission infrastructure, growth of demand via electrification and flexibility resources are needed to maintain development of RES and zero-carbon technologies
Source: ENTSO-E Transparency Platform; PCI-PMI Transparency platform; Lithuania Energy System Transformation to 2050 study, LITGRID (for Lithuania only), and other sources. *Note: data takes the first day of the year. Lithuania 2020: additional 72 MW, 2,809,977 population. Lithuania 2023: additional 934 MW, 2,857,279 population.
Baltic sea region has significant potential for the development of RES and environmentally friendly technologies
Interconectors
CO₂ network
Hydrogen network
10
COMPLEX GLOBAL DYNAMICS ARE SHAPING OUR ENVIRONMENT
11
LITHUANIA HAS APPROVED ITS NATIONAL ENERGY INDEPENDENCE STRATEGY
The aim is for RES capacities to grow rapidly, and for demand and energy exports to increase. Lithuania's goal is to transition from fossil methane to green gases. The expansion of RES requires greater system flexibility, utilizing intersystem connections and other cross-sectoral flexibility measures.
An ambitious national strategy
To become a country that produces energy for its own needs and exports it by 2050, creating a climate-neutral and high value-added energy industry.
Lithuanian electricity demand and supply outlook, TWh
Lithuanian flexible resources (excl. interconnections), GW
Lithuanian methane and green gases demand outlook, TWh
CO₂ collection potential in Lithuania, M t/y
Amber Grid
03
MISSION AND COMMITMENTS
WE EXIST
OUR PURPOSE
To power a confident and green future in an ever-changing world
WE SEEK
OUR VISION
To enable the transformation of the energy industry while simultaneously safeguarding national security interests
OUR ACTION NOW
OUR MISSION
To accelerate energy independence and enhance system security
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OUR THREE FUNDAMENTAL COMMITMENTS
DRIVER OF TOMORROW'S INFRASTRUCTURE
- We see the transformation of the energy sector as a fundamental change. Our goal is to provide the infrastructure upon which the net-zero energy system will be based
PROVIDER OF SECURITY AND RELIABILITY
- We aim to enhance security and reliability within and beyond the energy sector, strengthening system flexibility and national security. Our work is essential for a reliable future
VITAL AND SKILLED STRATEGIC PARTNER
- Energy transformation requires a systemic and close cooperation of various industry peers, investors and governments. Our goal is to be a vital partner in developing low-carbon infrastructure and markets.
WE ADHERE TO GOVERNANCE PRINCIPLES ORIENTED TOWARDS A SUSTAINABLE FUTURE
Creating a positive culture and a safe environment free from accidents
Net zero by 2050
No net loss of biodiversity
Empowered people and positive impact on communities
Transparency, responsible governance and supply chain management and sustainable finance
Our business strategy directly targets 7 UN SDGs while contributing to all the others
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BUILDING A STRONGER ORGANISATION FOR OUR PEOPLE
Focusing on a unified group culture, identity and people growth
We are targeting:
Building a unified Group culture and identity
To be an employer of choice for employees
Ensure development and growth of our people
ORGANISATIONAL CAPABILITY AND SUSTAINABILITY
We develop capabilities to enable the energy transformation. We refine our work environment and processes and interact with education institutions
Identification and application of future competences, reskilling employees and ensuring succession
Matrix leadership focused development
Promote energy profession
Creating new tools to attract and maintain workforce
Data-driven decisions in employment relations
LEADERSHIP AND TALENT GROWTH
We rely on our ability to constantly learn for the Group and its people to flourish. We will focus on creating opportunities to further develop talents and leadership skills
Attracting, developing, and retaining talent
Focused development of professionals, attracting competences internationally
Empowering the personal leadership of team members
Ensure transparency, diversity and engagement
Amber Grid
04
STRATEGIC FRAMEWORK AND STRATEGIC PURSUITS
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OUR STRATEGIC FRAMEWORK
ENABLERS
- People, culture & capabilities
- Financing
- Partnership
- Asset delivery & management
- Supply chain & procurement
- Innovation & digitaliation
CRITICAL INFRASTRUCTURE
RESILIENCE
AND NATIONAL SECURITY
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DRIVER OF TOMORROW'S INFRASTRUCTURE
- We see the transformation of the energy sector as a fundamental change
- We support increasing connectivity across existing and new energy vectors
-
We are leading the way for successful integration of the new energy vectors like hydrogen (H₂), carbon dioxide (CO₂) and synthetic green gases
-
OBJECTIVE
to adapt and build the infrastructure upon which the future of energy will be based
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LITHUANIAN ENERGY STRATEGY 2050
Implementing the energy transformation requires the creation of new transmission networks, transformation and optimisation of the gas transmission system
≥ 24 TWh
Green H₂ production
≥ 9 TWh
Green H₂ derivatives
≥ 65 TWh
Demand for gas transmission
Potential investments until 2035
3.3 B EUR
We promote greater system interoperability and the integration of existing and new energy vectors
We are preparing for the transformation of the gas system to ensure its future-proofing, safety and reliability. We will assess technical infrastructure changes and initiate changes and explore opportunities to adapt the gas network to other alternatives.
We are creating a hydrogen transportation infrastructure that will stimulate the development of the Lithuanian hydrogen ecosystem. The Lithuanian hydrogen network is very important in creating conditions for hydrogen transit along the Nordic-Baltic corridor.
We are exploring the possibilities of creating a CO₂ network for the development of a climate-neutral and high-value-added ecosystem and industry.
CO₂ network and ecosystem
≥ 1,6 Mton CO₂
CO₂ transmission capacity for CCS project in the Baltics
H₂
Hydrogen network
≥ 100 TWh H₂
transmission network capacity in Nordic-Baltic hydrogen corridor
CH₄
Gas transmission networks
≥ 65 TWh
Demand projection for transmission
PROVIDER SECURITY AND RELIABILITY
- Our activities are integral to ensuring a reliable future
- We are creating a more resilient and flexible energy system
- We are taking additional actions within and beyond our operations to strengthen national security
OBJECTIVE
enhance security and reliability within and beyond the energy sector, strengthening system flexibility and national security
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PROVIDER OF SECURITY AND RELIABILITY
We are increasing safety and reliability in the energy sector and beyond, strengthening system resilience and national security
Safeguarding resilience of critical infrastructure and national security
We strengthen the safety of our assets against physical and cyber threats, and act as a strategic partner for national security initiatives
Cyber & physical security
Energy system
National security
Partnerships & projects
- We strengthen physical security by installing drone protection systems, ensuring contingency reserves and the presence of personnel and equipment
- We strengthen cybersecurity by ensuring the latest digital security measures for critical transmission network assets, implementing advanced cybersecurity programs, and continuously educating employees and partners
- By reorganising critical sections of the main gas pipeline, paying attention to determining the depth of gas pipelines and their deepening, we strengthen the safety and reliability of the transmission system
-
By consistently maintaining gas pipelines, monitoring gas parameters in the transmission system, organising emergency exercises, improving the emergency management plan, and cooperating with transmission operators in neighboring countries, distribution and LNG terminal operators, we ensure the security of the gas transmission system.
-
Ensuring that residents, businesses and people's property near gas pipelines remain safe even in the event of a minor accident, we are conducting information campaigns to increase their awareness of gas pipeline protection zones, safety-enhancing area classes, and applicable building codes. We hope that this knowledge will encourage the public to plan their activities near gas pipelines more carefully
VITAL AND SKILLED STRATEGIC PARTNER
- Energy transition requires a systemic and close cooperation of various industry peers, investors and governments
- We will foster close cooperation to unlock the potential of renewables both at home and in the Baltic Sea region
- We will enhance synergy and integration of different business sectors
OBJECTIVE
Be a vital partner in developing low-carbon infrastructure and markets
24
Biomethane production (2040) 3.4 TWh
Customer experience evaluation (GCSI) ≥80
- The Lithuanian Register of guarantees of origin for RES gas connection to European schemes (2025-2026)
- Transparent and non-discriminatory new markets functioning models and rules created
RENEWABLE ENERGY CONNECTION & INTEGRATION
We connect biomethane producers to existing networks, accelerating the development of renewable energy in Lithuania. The integration of biomethane into the overall energy system is now one of the main energy goals of European countries, and for Amber Grid's customers it is a key future development opportunity
CUSTOMER-CENTRIC ORGANISATION
We focus on strengthening approach to our customer and developing future customer service competence, and we strive to ensure a reliable partnership for all current and future customers on the path of energy transformation
When evaluating existing services and the ongoing energy transformation, new infrastructure development initiatives, we must be ready to respond to changing customer expectations. Therefore, we constantly study customer experience and accordingly set priorities that meet expectations
ENERGY MARKET DEVELOPMENT
We aim to create transparent rules for the functioning of the $\mathsf{H}_2$ market and offer new opportunities to renewable gas market participants.
We will analyse opportunities to contribute to the development of the $\mathrm{CO}_{2}$ market.
We are creating an opportunity for customers to exchange guarantees of origin for renewable gas (biomethane, hydrogen) in Europe, for which purpose we are organising the connection of the Lithuanian Register of Guarantees of Origin for Renewable Gas to the European Guarantees of Origin Schemes (AIB and ERGaR schemes).
Amber Grid
05 KEY ENABLERS
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CULTURE & CAPABILITIES
Our success is driven by expertise, continuous learning and the ability to act in a constantly changing environment
AREAS DRIVING BUSINESS GROWTH
- Renewables
- Carbon dioxide transportation, storage & utilisation
- Hydrogen and its products integration and/or transportation
- Power to X technologies
Lithuania's energy future is driven by our people with unified values
Open
Reliable
Responsible
Our team will grow by around
30%
by bringing in Lithuanian and international talent
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1 FINANCING
- Diversified funding base
- Strong relationships with capital providers
- Prioritisation of investments that have the highest return and impact
3 SUPPLY CHAIN & PROCUREMENT
- Diverse range of suppliers
- Leveraging collective buying power
- Utilising a wide range of procurement platforms
5 INNOVATION & DIGITALISATION
- Cutting-edge technologies for value creation
- From 'big data' to 'smart data'
- Digital literacy & Culture to exploit opportunities
2 PARTNERSHIPS
- With other companies in the energy and other sectors
- With local and EU regulation institutions and organisations
- With academic organisations
4 ASSET DELIVERY & MANAGEMENT
- Advanced project management
- Digital asset management tools
- Proactively managing portfolio-level risks
OUR KEY ENABLERS
To achieve our goals, we are developing a range of enablers to accelerate the attainment of results
Amber Grid
06 | STRATEGIC ROADMAP AND KPIs
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1 SOCIETY
THRIVES IN A SUSTAINABLE ECONOMY
-50%
GHG gas emission (Scope 1 and 2) reduction by 2030, reaching net-zero by 2050
Ensured safety of people
0 accidents for those living near gas infrastructure
2 CLIENTS
EXPERIENCE SEAMLESS AND HIGH QUALITY SERVICES
0 unplanned gas interruptions
Uninterrupted gas transmission and fast fault recovery
≥ 80 points
Global Customer Satisfaction Index (GCSI) as a leading companies rating scores
3 OUR PEOPLE
ARE EMPOWERED
Safe, positive, and accident free workspace and culture
0 severe and fatal accidents for employees and contractors
≥ 70%
employee engagement rate maintained
Top Employer certificate
4 FOUNDERS AND INVESTORS
UNLOCK NEW POSSIBILITIES AND REAP THE REWARDS
≥ 87 M EUR
adjusted EBITDA
Hight single digit average
adjusted ROE
90–110 %
Execution of the CAPEX plan
5 PARTNERS
COLLABORATE FOR SUCCESS
H₂
≥ 26 TWh/year H₂
International transmission capacity in 2035, reaching 100 TWh/year by 2050
CO₂
≥ 1,6 Mt CO₂
International transmission capacity for CO₂ captured by cement producers by 2035
~2.4 TWh
of RES gases
injected into the
gas grid in 2035,
compared to 0.05
TWh in 2023
DESCRIBING 2035 SUCCESS: VALUE PROPOSITION FOR OUR STAKEHOLDERS
We are creating a sustainable and reliable future in an ever-changing world
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OUR ROADMAP DELINEATES THREE DISTINCT TIME HORIZONS, EACH WITH UNIQUE OUTCOMES BUILT ON THE SUCCESSES OF ITS PREDECESSORS
CREATING ENERGY SELF-SUFFICIENCY
Now – 2029
A fully developed system of guarantees of origin that meets the needs of customers. Preparatory works are completed ensuring the active phase of hydrogen activity
1
EXPANDING INTO NEW ENERGIES
2030 – 2035
Hydrogen economy is kicked-off, allowing further renewable expansion and first steps for major shift from fossil fuels
2
SCALING OUR ACTIVITIES
2036 – 2050+
The region's connected for existing and new energy exchanges. Lithuania becomes an exporter of power and low carbon energy products
- Implementation of preparatory actions related to hydrogen (H₂) and carbon dioxide (CO₂) transportation networks
- Initiation of gas network optimisation, considering gas consumption, transmission volumes, and infrastructure safety
- Creation of market operation models and rules to enable the functioning of H₂ market
- Development and implementation of strategic partnerships to maintain national security
- The Lithuanian origin guarantees registry for renewable gas is connected to European schemes
-
Alignment of near-term GHG reduction targets with the SBTi methodology
-
For the first time in Lithuania, green H₂ demand and supply points have been connected through the transmission network. Creation of a regional green H₂ corridor from Finland to Germany (through Estonia, Latvia, Lithuania, and Poland)
- Objects that cannot be decarbonised due to the nature of their activities are connected to the CO₂ transportation network
- The gas network is being restructured and optimised
- The H₂ market operates efficiently based on created market operation models and transparent rules
-
By 2035, at least 50% of suppliers will have set GHG targets
-
Fully developed hydrogen network to meet regional market needs
- CO₂ network developed in response to market demand
- Achieving net-zero GHG emissions by 2050
- By 2050, the restructured gas transmission network will meet the needs for transporting green gases and other products
Amber Grid
FINANCIAL OUTLOOK
OUR CAPEX INVESTMENT GOAL
Planned distribution of investments by existing and planned activities until 2035, B EUR
PROFITABILITY
We will maintain the Company's profitability for the shareholders
NET DEBT/ ADJUSTED EBITDA
Long-term perspective ≤6, however during implementation of new H₂ transmission network leverage ratio will be higher than 6. The ratio of existing activities all time ≤6
Investments to be financed through multiple funding sources, such as:
Maximize EU & external funding
Introduce Partnerships
Optimization of debt and equity
- CAPEX projections based on the latest best estimate.
Amber Grid
VALUE FOR LITHUANIA
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LET'S CREATE LITHUANIA'S ENERGY FUTURE TOGETHER!
As part of the Group, Amber Grid significantly contributes to the vision that brings benefits to Lithuania
Significant benefits for Lithuania's environment and economy by 2050
Up to
6.3 B EUR
due to positive impact on employment and economy
6 B EUR
avoided energy import costs
1.4 B EUR
avoided costs on EU Carbon Permits
Up to
1 B EUR
due to lower electricity wholesale price
Up to
10 %
growth of labour market
GLOSSARY
| Acronym | Definition | Acronym | Definition |
|---|---|---|---|
| AIB | Association of Issuing Bodies | LT | Lithuania |
| B | Billion | Mton | Millions of tonnes |
| CAPEX | Capital expenditure | MW / MWh | Megawatt / Megawatt hour |
| CCS | Carbon capture & storage | P2G | Power to gas |
| CCUS | Carbon capture, usage & storage | ROE | Return on equity |
| CO2 | Carbon dioxide | RES | Renewable energy sources |
| EBITDA | Earnings before interest, tax, depreciation, and amortisation | Scope 1 emissions | The Group's direct GHG emissions that are directly controlled by the organization |
| ERGaR | European Renewable Gas Registry | Scope 2 emissions | The Group's indirect GHG emissions from uncontrolled sources, which result from the Group's consumption of externally sourced electricity and heat |
| ESG | Environmental, social, and corporate governance | Scope 3 emissions | Other indirect GHG emissions during the Group's operations (in the supply chain) from sources not owned or controlled by the Group (such as purchased goods and services, transportation, waste, etc.) |
| EU | European Union | SBTi | Science based targets initiatives |
| EUR | Euro | TSO | Transmission system operator |
| GCSI | Global customer satisfaction index | TW / TWh | Terawatt / Terawatt hour |
| GDP | Gross domestic product | UN SDG | UN Sustainable development goals |
| GHG | Green-house gases | ||
| GW / GWh | Gigawatt / Gigawatt hour |
NewEnergy
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