2025-08-08
Litgrid first half results: strategic energy independence projects continue to be successfully implemented
In the second quarter of this year, Litgrid, the Lithuanian electricity transmission system operator, continued to provide seamless operation of the electricity system in the Continental Europe Synchronous Area, which Lithuania joined in February together with the other Baltic countries. Strategic projects ensuring Lithuania's energy independence were also completed in April–June. Litgrid continued to ensure the reliability of electricity supply. Due to temporary factors affecting the electricity balancing market, the company incurred a loss in the first half of the year, but the adjusted financial results were stable compared to the same period last year.
“It has been six months since we severed ties with the Russian-controlled electricity system without any disruptions and have been operating smoothly with our partners in the Continental European electricity system. In the second quarter, we completed projects important for energy independence as part of the synchronisation programme: we launched the third synchronous condenser, completed the reconstruction of the Neris substation and the construction of the Vilnius–Neris line, thereby strengthening the electricity transmission network in the Vilnius region. We also completed the Kruonio HAE–Bitėnai power line project," said Rokas Masiulis, CEO of Litgrid.
According to him, work on the new Harmony Link onshore interconnector with Poland is also progressing rapidly: in the second quarter, the concept for the project's engineering infrastructure development plan was approved, and Litgrid began design work on the line and the purchase of variable shunt reactors.
“In April, we reached a symbolic milestone in the development of renewable energy sources: solar and wind power plants in Lithuania exceeded 4 GW of capacity, and we expect to reach 5 GW by the end of the year. In the second quarter, more than 90% of Lithuania's electricity demand was met by local power plants, with renewable power plants alone accounting for almost two-thirds. Laying the foundations for the future development of renewable resources, we have started the first works on a hybrid offshore power link project together with German and Latvian operators and are implementing innovative dynamic line rating technology,” says the CEO of Litgrid.
Supply reliability
The amount of electricity transmitted through Lithuania's transmission grid decreased in the first half of the year. In January–June 2025, the amount of electricity transmitted to meet the country's needs reached 4.459 TWh, which is 5.9% less than in the same period in 2024, when 4.739 TWh was transmitted.
Litgrid continued to implement its planned electricity supply reliability targets while supervising and managing the electricity transmission system. In the first half of 2025, the average interruption time (AIT) was 0.225 minutes, and the energy not supplied (ENS) indicator was 5.735 MWh. By comparison, the National Energy Regulatory Council (NERC) has set a target of 0.934 minutes for the AIT and 27.251 MWh for the ENS for the whole year.
The overall availability of the NordBalt interconnector with Sweden in the first half of 2025 was 97.4%. The unavailability was mainly due to emergency disconnections on the Swedish side. From January 1 to February 9, 2025, the availability of the LitPol Link interconnection was 99.1%. Since February 9, LitPol Link has been operating in AC mode, with the interconnection's market capacity assessed on the basis of frequency stability in order to ensure the reliability of the Baltic countries' electricity systems. From February 9 to June 30, the capacity of the Poland-Lithuania section dedicated to the market (at least 70% of capacity) was 99.3%, while that of the Lithuania-Poland section was 100%. The unavailability of LitPol Link was mainly due to scheduled maintenance work and balancing reserve volumes.
Financial results
According to unaudited data, Litgrid's revenue for the first half of 2025 amounted to EUR 209 million. Compared to the same period last year, it was 6% higher.
Revenue from electricity transmission (including EUR 17.2 million in congestion management revenue used for tariff reductions in 2025) increased by 2% to EUR 66.2 million.
Revenue from additional services increased by 25% to EUR 89.9 million. Revenue was increased by a 28% higher component of additional services in the transmission price set by NERC, while the volume of services provided decreased by 4%.
Income from imbalance and balancing decreased by 16.5% to EUR 48.2 million due to a 39% decrease in the average sales price, while the volume increased by 36%. The system balancing service provided by Litgrid is zero-profit in the long term, i.e. changes in revenue do not affect the amount of profit (loss) as this revenue only covers the actual costs incurred.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first half of 2025, after adjustments for temporary regulatory deviations from the amounts approved by NERC and elimination of other non-recurring income or losses, amounted to EUR 26.8 million. In comparison, adjusted EBITDA for the first half of 2024 was EUR 24.5 million. Adjusted net profit for the first half of 2025 amounted to EUR 14.4 million and was equal to adjusted net profit for the same period in 2024. Adjusted EBITDA was mainly driven by higher capital costs due to an increase in the value of regulated assets, while the adjusted profit indicator remained unchanged due to higher depreciation costs, a weaker financial performance and income tax calculations.
The company's unadjusted EBITDA for the first half of 2025 was negative EUR (-40.3) million. At the same time last year, unadjusted EBITDA amounted to EUR 40.6 million. The unadjusted net loss for the first half of 2025 amounted to EUR (-41.9) million, while in January-June 2024, the net profit amounted to EUR 28.1 million. The negative unadjusted profit indicators were mainly due to higher costs of additional services related to balancing reserves. On June 27, 2025, NERC adopted a decision to reduce the upper limit of the prices for isolated electricity system operation services provided by AB Ignitis gamyba, effective from August 1, 2025, to December 31, 2025. This decision should reduce Litgrid's additional service costs by EUR 87 million in the second half of 2025.
Litgrid's investments in the first half of 2025 amounted to EUR 73.3 million, of which 38% was allocated to strategic and nationally important electricity projects and 62% to the reconstruction and expansion of the transmission network and operational maintenance.
In the first half of 2025, congestion management revenues amounted to EUR 48 million, which was 9.5% less than in the same period last year. Congestion management revenues are not recognized as income and do not directly affect Litgrid's operating results. their use is regulated by Regulation (EU) 2019/943 of the European Parliament and of the Council and the methodology approved by the Agency for the Cooperation of Energy Regulators (ACER). Income from congestion management is mainly used to partially finance the company's investments in increasing the capacity of interconnections.
