AB “Ignitis grupė” Strategic Plan 2024–2027: envisions a two-fold
increase in green capacities
AB “Ignitis grupė” (hereinafter – the Group) publishes its
Strategic Plan 2024–2027, which is attached to this notice. The
Group remains focused on its ambitious strategy execution with a
purpose to create a 100% green and secure energy ecosystem.
This includes expanding Group’s Green Capacities Portfolio and
growing Investments to deliver 4–5 GW of Installed Capacity by
2030, thus strengthening its contribution to Europe's
decarbonisation and energy security in the region.
As a renewables-focused integrated utility, we focus on green
generation and green flexibility technologies, including onshore
and offshore wind, battery energy storage system (BESS),
pumped-storage hydro and power-to-X.
We utilise our integrated business model and benefit from the
largest customer portfolio, energy storage facility, and network in
the Baltics.
To deliver on the ambitious goals in the Green Capacities and
Networks segments, the Group plans to invest EUR 3.0–4.0 billion
over the 2024–2027 period. This represents an increase of around
EUR 1 billion compared to the previous strategic period,
underscoring our commitment to a sustainable future.
Highlights of the strategic plan
We plan to double the Installed Green Capacities, reaching a
total of 2.4–2.6 GW in 2027 compared to 1.3 GW in 2023. Currently,
the Group’s Green Capacities Portfolio amounts to 7.4 GW, of which
2.9 GW is Secured Capacity.
We aim building at least 2 offshore wind projects in the
Baltics: one project in Lithuania (COD ~2030), and at least one
more project in the Baltics (COD post 2030). We seek to reach at
least 700 MW of onshore wind capacity installed by 2027 in the
Baltics and Poland.
We keep a focus on the development of green flexibility
technologies: pumped-storage hydro expansion by 2026 (by adding 110
MW to the currently existing 900 MW); we are targeting to develop
commercial-scale battery energy storage systems (BESS) by 2027 and
implement a green hydrogen and e-fuel production pilot project.
We strive to further expand our customer portfolio to enable the
Green Capacities build-out.
Our growing customer portfolio and focus on green electricity
supply should lead to a significant increase in the amount of
supplied electricity by the Group, from 6.7 TWh in 2023 to 9.0–11.0
TWh by 2027.
We plan to connect the growing number of new customers to the
distribution network and to expand the capacity of electricity
distribution network in order to enable a green transition and to
meet growing demand related to electrification.
The Group is building a leading EV public charging network in
the Baltics. We aim to expand across public, commercial, and home
charging segments and focus on developing EV fast-charging network
while being the first-choice charging solutions provider for the
home and business customers.
To accelerate the green electrification in the Baltics and
Poland, the Group is expanding its renewable organisation and is
expecting to increase the number of employees at Ignitis Renewables
3.5 times by 2027.
Financial targets
In 2024–2027, we plan to invest EUR 3.0-4.0 billion with over
85–90% of the investments to be aligned with the EU Taxonomy.
We plan to direct EUR 1.8–2.4 billion (around 61% of the
Investments) to further develop green generation and green
flexibility technologies and double the installed Green Capacities.
More than half of the Green Capacities Investments over the
2024–2027 period relate to new Installed Green Capacities additions
after 2027.
We are planning to direct EUR 1.1–1.3 billion or one third of
our Investments towards the expansion of a resilient and efficient
electricity distribution network, which is one of key elements of a
successful energy transition.
We are expecting the Group’s Adjusted EBITDA in 2027 to be
within the range of EUR 550–650 million compared to EUR 484.7
million in 2023. The average Adjusted ROCE is projected to reach
6.5–7.5% in 2024–2027. We expect to maintain our credit rating of
‘BBB’ and above over the 2024–2027 period. We will continue our
investment programme while maintaining net debt to EBITDA below 5
times.
We are committed to a at least 3% annual dividend growth,
representing a 7.3–8.0% implied dividend yield in the 2024–2027
period.
Sustainability priorities and targets
We aim to reach net zero emissions by 2040–2050 and expect over
85–90% of our total Investments to be aligned with the EU Taxonomy
in the period 2024–2027. We aim to achieve the sustainable share of
Adjusted EBITDA of at least 70–75% by 2027.
We will maximise sustainable value by directing our Investments
toward a decarbonisation pathway that is aligned with our business
ambitions and reaching net zero emissions by 2040–2050. Our
sustainability-related priority is reducing the carbon intensity of
scope 1 & 2 GHG emissions (by ~20-40% in 2027 vs. 2023) by
growing Installed Green Capacities and increasing the share of
green electricity used for our operations.
We strive to grow the share of green electricity we supply (over
30% by 2027 compared to 17% in 2023).
We keep a strong strategic focus on occupational health and
safety, employee experience, well-being, and diversity.
Long-term performance objectives
Following the Strategic Plan, the Supervisory Board of Ignitis
Group approved the long-term objectives and performance targets for
the 2024–2027 period that determine a long-term variable part of
remuneration for key executives.
Details of the Long-Term Incentive Plan objectives for the
2024–2027 period are available in the Strategic Plan’s annexes and
on our website (link).
The earnings call
In relation to the announcement of the Strategic Plan 2024–2027
and of the first three months 2024 interim report, an earnings call
will be held on Wednesday, 15 May 2024, at 1:00 pm Vilnius / 11:00
am London time.
To join the earnings call, please register at:
https://edge.media-server.com/mmc/go/Ignitis3M2024resultsandstrategicplan2024-2027/
It will be also possible to join the earnings call by phone. To
access the dial-in details, please register here. After completing
the registration, you will receive dial-in details on screen and
via email. You will be able to dial in using the provided numbers
and the unique pin or by selecting ‘Call me’ option and providing
your phone details for the system to reach you automatically as the
earnings call starts.
All questions can be directed in advance to the Group’s investor
relations team after registering for the earnings call or live,
during the call.
Presentation slides will be available prior to the
call: https://ignitisgrupe.lt/en/reports-and-presentations
The interim report, including the fact sheet (in Excel), will be
available for download
at: https://ignitisgrupe.lt/en/reports-and-presentations Strategic
Plan 2024–2027 is available on our website:
https://ignitisgrupe.lt/en/strategy
For additional information, please contact:
Communications
Artūras Ketlerius +370 620 76076
arturas.ketlerius@ignitis.lt
Investor relations
Ainė Riffel-Grinkevičienė +370 643 14925
aine.riffel-grinkeviciene@ignitis.lt
- Ignitis Group_Strategic Plan 2024-2027