AB “Ignitis grupė” (hereafter – the Group) informs that the Supervisory Board of its subsidiary AB “Energijos skirstymo operatorius” (hereafter – ESO) approved on December 7, 2021 the updated 10-year investment plan of the Networks segment for 2021-2030 (hereafter – the Investment Plan) (connect). The investments planned for the period 2021-2030 amount to 1.9 billion euros. They will be allocated to improving the reliability, resilience and digitization of electricity and gas distribution networks.
The activities of the basic networks will be continued and there are no significant changes compared to the previous Investment Plan 2020-2029. The planned investments will be allocated to the two main activities – increasing the reliability and efficiency of the network as well as facilitating the market and customer experience:
- Increase in network reliability and efficiency: in order to restore power more quickly after a grid failure, overhead power lines will be replaced by underground cables with priority over the replacement of power lines with lots of interruptions and dangerous power lines, in forests. The installation of equipment for automation and network management will continue. In addition, cutting-edge and innovative solutions focusing on the seamless and optimal integration of distributed energy sources and charging stations for electric vehicles as well as digitalization solutions for asset management will be implemented.
- Market facilitator and customer experience: the aim is to facilitate market transformation and development and improve customer engagement when selecting an energy supplier. The implementation of smart meters is the main feature of the program. This technological solution in the ESO network will ensure data accuracy and immediate availability while facilitating the market and consumers to create high quality services.
ESO will finance the planned investments through income from distribution tariffs, the European Union and other subsidies, as well as through the allocation of equity and borrowed funds. The investment projects set out in the investment plan will be coordinated with the National Energy Regulatory Council (hereafter – NERC).
Until now, the investment plan was updated annually, however, NERC was under no obligation to formally approve it. From 2022, the investment plan must be submitted, according to the procedure provided for in the legal acts, for approval by NERC every two years.
The adoption and implementation of specific solutions in pursuit of the objectives (including their scope, duration, method of funding and other aspects) will depend on economic, legal and other factors that may affect the organization. adoption of solutions and their effective implementation. Investments will be coordinated, in accordance with the procedure provided for in legal acts, with regulatory authorities, therefore, they cannot be considered as ultimate investment decisions or used as a basis for carrying out other actions.
For more information please contact:
Public Relations Manager at Ignitis Group
Phone. +370 6 207 6076