Ignitis Group Unveils Comprehensive Strategy for Green Energy
Ignitis Group’s Vision for a Sustainable Future
AB “Ignitis grup?” is excited to announce its Strategic Plan for 2025–2028, a blueprint designed to lead the way towards creating a fully green and secure energy ecosystem for generations to come. The Group's commitment to sustainability is underscored by its ambitious goal of achieving 100% renewable energy sources.
Expansion of Green Capacities
The Group's Green Capacities Portfolio aims for an impressive expansion, targeting 4–5 GW of installed green capacities by 2030. This strategic move not only strengthens energy security but also significantly contributes to the region's green energy production. In the current Networks segment, we are actively working on enhancing and maintaining the electricity grid, facilitating a smoother transition to green energy.
Doubling Green Capacities
We have set a clear target to double our installed green capacities from 1.4 GW in 2024 to a total of 2.6–3.0 GW by 2028. Presently, our Green Capacities Portfolio stands at 8.4 GW, including 3.1 GW as Secured Capacity. Our focus remains on the development of cutting-edge green generation and flexibility technologies, such as onshore and offshore wind farms, battery storage, pumped-storage hydro, and power-to-x initiatives.
Growth in Electricity Supply
To support the build-out of our Green Capacities, we are expanding our customer base to secure electricity offtake effectively. Our goal is to increase electricity supply significantly from 6.7 TWh in 2024 to as much as 9.0–11.0 TWh by 2028. This expansion is coupled with our effort to develop a leading EV fast-charging network, aiming to become the preferred charging solution provider in the Baltic region for both residential and commercial clients.
Financial Framework and Investment Plans
Between 2025 and 2028, the Group is looking to invest between EUR 3.0–4.0 billion, with a substantial 85–90% of these investments being aligned with the EU Taxonomy. Our investment strategy includes directing approximately 59% (EUR 1.7–2.4 billion) towards further enhancing green capacities, with most investments focusing on new capacity additions that will be realized after 2028.
Resilient Electricity Distribution Network
The second largest allocation of investments, around 36% (EUR 1.2–1.3 billion), will focus on the expansion and maintenance of our electricity distribution network, an essential component for ensuring a successful energy transition. We anticipate these investments will yield an increase in Adjusted EBITDA from EUR 527.9 million in 2024 to an estimated EUR 600–680 million by 2028, with at least 70–75% of EBITDA linked to sustainable operations.
Maintaining Strong Financial Health
Our financial discipline is pivotal as we aim to maintain a credit rating of 'BBB' or higher during the 2025–2028 timeline. Continuously managing our equity structure will allow us to sustain our Net Debt to Adjusted EBITDA ratio below five times. Moreover, in alignment with our Dividend Policy, we are committed to achieving a minimum of 3% annual dividend growth, indicating a potential yield of 6.4%–7.0% during this period.
Sustainability Commitments
One of our core sustainability goals is to reach net zero emissions by 2040-2050. We are committed to maximizing sustainable value by aligning our investments with a decarbonization pathway that complements our organizational objectives. Our primary sustainability focus is on reducing the carbon intensity of our Scope 1 & 2 GHG emissions down to 190 g CO2-eq/kWh in 2028, which is a 5% reduction from 2024 levels. This will be achieved by increasing our installed green capacities and promoting the use of green electricity in our operations.
Long-Term Performance and Incentives
The Strategic Plan also outlines the long-term performance objectives that have been approved by the Supervisory Board of Ignitis Group. This plan will influence the variable remuneration for key executives, ensuring alignment with our strategic goals and commitment to shareholder value.
Engagement with Investors
As part of our transparency commitment, we invite investors and analysts to join an upcoming earnings call scheduled for May 14, 2025, where insights on our interim report and the strategic plan will be shared. Registration details are provided for those interested in participating via phone or online.
Frequently Asked Questions
What is the main goal of Ignitis Group's Strategic Plan 2025-2028?
The primary goal is to develop a 100% green and secure energy ecosystem for current and future generations.
How much does Ignitis Group plan to invest in green energy?
Ignitis Group plans to invest between EUR 3.0–4.0 billion, primarily focused on expanding green capacities and enhancing electricity distribution networks.
What technologies will Ignitis Group focus on developing?
The Group is concentrating on advancements in onshore and offshore wind, battery storage, and pumped-storage hydro technologies.
What financial targets are outlined in the strategic plan?
Expected Adjusted EBITDA will grow from EUR 527.9 million in 2024 to EUR 600–680 million in 2028, aiming for sustainable operations to represent at least 70–75% of total EBITDA.
What is Ignitis Group's commitment towards sustainability?
Ignitis is committed to achieving net zero emissions by 2040-2050, focusing on reducing carbon intensity and promoting the usage of green electricity.
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