Ignitis Group's Strategic Journey to 2028
AB Ignitis grup?, known as the Group, is excited to announce an ambitious Strategic Plan for the years 2025 to 2028. This plan focuses on realizing a vision of a 100% green and secure energy ecosystem that aims to benefit both current and future generations.
Expanding Green Capacities
The Group is working diligently to enhance its Green Capacities Portfolio with a target of achieving 4–5 GW of installed Green Capacities by 2030. This initiative aims to bolster energy security and ramp up the region's green energy production. In our Networks segment, we are focused on extending the electricity grid to support a seamless green transition.
Strategic Targets for Growth
Our objective is to double the installed Green Capacities from 1.4 GW in 2024 to a range between 2.6–3.0 GW by 2028. Presently, our portfolio stands at 8.4 GW, inclusive of 3.1 GW categorized as Secured Capacity. We are particularly focused on developing cutting-edge green generation technologies, such as onshore and offshore wind farms, battery storage systems, pumped-storage hydro, and innovative power-to-x solutions.
Expanding Electricity Supply
To support the expansion of Green Capacities, we plan to broaden our customer base to secure electricity offtake. By enhancing our electricity supply portfolio in the regions we operate, we anticipate increasing our supplied electricity volume from 6.7 TWh in 2024 to between 9.0–11.0 TWh by 2028. Additionally, we are developing a robust EV fast-charging network to become the leading provider of charging solutions for both residential and commercial customers in the Baltics.
Financial Investments and Targets
During the period of 2025–2028, our investment strategy involves committing EUR 3.0–4.0 billion, with over 85–90% of these investments aligning with the EU Taxonomy. A significant portion of around 59%—amounting to EUR 1.7–2.4 billion—will specifically target the development of Green Capacities. Notably, more than half of this investment is dedicated to new additions in Green Capacities beyond 2028.
Electricity Distribution Investments
Another crucial component of our strategy is the allocation of approximately 36% of the total investments (EUR 1.2–1.3 billion) towards the enhancement and maintenance of a resilient and efficient electricity distribution network. This investment is vital to successfully transitioning into a more sustainable energy future.
Financial Performance Metrics
Our strategic investments are projected to yield an Adjusted EBITDA of EUR 600–680 million by 2028, reflecting an increase from EUR 527.9 million in 2024. We are targeting a sustainable share of Adjusted EBITDA of at least 70–75% by 2028. The anticipated average Adjusted ROCE for the 2025–2028 period is expected to be between 6.5–7.5%.
Commitment to Sustainability
We are dedicated to reaching net-zero emissions by the period of 2040–2050. Our investment strategy will emphasize creating sustainable value through a clear decarbonization pathway aligned with our business goals. A key sustainability objective is to reduce the carbon intensity of our Scope 1 & 2 GHG emissions to 190 g CO2-eq/kWh by 2028, which translates to a 5% reduction compared to 2024 levels. This will be achieved through increasing our installed Green Capacities and enhancing the proportion of green electricity utilized in our operations.
Long-term Objectives
In alignment with the Strategic Plan, the Supervisory Board of Ignitis Group has established long-term performance objectives and targets for the 2025–2028 period. These will dictate the variable remuneration for key executives and help motivate organizational success.
Engagement and Communication
For those interested in learning about our financial progress and strategic direction, we invite stakeholders to participate in an upcoming earnings call. Investors and analysts can engage with us to discuss our first quarterly results for 2025 and our Strategic Plan during this call. The earnings call will be held at a scheduled time, and we encourage registration to ensure inclusion.
Should you have inquiries or require additional information regarding our strategic initiatives or financial performance, please connect with our dedicated communications and investor relations team. Our contact details are readily available for further assistance.
Frequently Asked Questions
What is the main goal of Ignitis Group's Strategic Plan 2025-2028?
The primary goal is to create a 100% green and secure energy ecosystem that benefits current and future generations.
How much is Ignitis Group investing during this period?
The Group plans to invest between EUR 3.0 and 4.0 billion from 2025 to 2028.
What technologies is Ignitis Group focusing on for green energy?
We are developing technologies including onshore and offshore wind energy, battery systems, and pumped-storage hydro.
What are the sustainability targets for Ignitis Group?
We aim to achieve net-zero emissions by 2040-2050, with significant reductions in carbon intensity by 2028.
How can stakeholders engage with Ignitis Group?
Stakeholders can engage through scheduled earnings calls and by reaching out to our communications or investor relations team for inquiries.
