Financial and non financial reports
On behalf of the sole shareholder, the Ministry of Energy of the Republic of Lithuania has submitted a Letter of Expectations to the State-owned EPSO-G Energy Transmission and Exchange Group, which sets out the main directions, principles and priorities for the implementation of the objectives of the European Union’s Green Deal and the Lithuanian National Energy Independence Strategy.
The Letter sets short- and medium-term objectives and benchmarks long-term expectations as the basis for the operational strategy of the EPSO-G Group and its constituent companies up to 2030 and for the preparation of their annual activity plans.
Shareholder's expectations in brief:
Ensuring Lithuania’s energy independence
The goals are:
- to ensure the independence of the Lithuanian electricity system and its integration into the continental European grids and to actively seek solutions that maximise the security and independence of Lithuania’s electricity system until the synchronisation project is fully implemented.
- to complete the extension project with Poland LitPol Link this year and to carry out an emergency synchronous operation test of the Lithuanian power system with the Polish power system, in preparation for an isolated operation test of the three Baltic countries’ power systems in 2023.
- to show leadership by proposing concrete solutions and implementing measures to ensure the implementation of the Law of the Republic of Lithuania on Necessary Measures of Protection against the Threats Posed by Unsafe Nuclear Power Plants in Third Countries.
- to complete in 2021 the gas Interconnection Poland–Lithuania (GIPL) project, which will integrate the gas markets of the Baltic States and Finland into the single European market, with the aim of actively ensuring that the interconnector, once in operation, enhances the competitiveness of Lithuania’s economy and generates economic returns for the country’s citizens and businesses.
- to ensure a high level of reliability of energy transmission to network users and consumers, comparable to the best EU market examples.
- to integrate the Lithuanian energy transmission systems into the European energy systems, expand the market geography and create preconditions for the formation of competitive energy prices;
- to manage strategic projects, develop gas and biofuel exchange platforms that would be attractive on a regional leve
Transformation of energy sector and networks
The goals are:
- to ensure the country’s energy security and integration with Europe, EPSO-G aims to actively prepare for the transformation of the grid and the necessary changes through the implementation of the EU’s Green Deal initiatives and the implementation of the energy systems integration, Hydrogen and Offshore Wind strategies presented in this context.
- to organise the necessary preparatory work for the development of an offshore wind project (700 MW) in Lithuania and, in cooperation with the countries of the Baltic Sea region, to examine and submit proposals for the further development of offshore wind by the end of the year.
- to take advantage of the potential of hydrogen. It is necessary to mobilise the investment and legal environment, market opportunities and scientific potential to create a Lithuanian hydrogen sector ecosystem. In this area, EPSO-G plays a key role in developing, adapting and integrating biomethane and hydrogen mixture technologies for transport through the existing gas transmission system. In the long term, this will increase flexibility in the electricity system.
- to contribute to the development of community energy in Lithuania, continue to play an active role in the implementation of the energy efficiency targets, adopt a responsible approach to energy efficiency in its day-to-day operations and ensure relevant and value-creating data for the market and its participants.
- to ensure the consistent and sustainable development of the Group’s non-regulated activities and the strengthening of the Group’s position in overseas markets through the development of return-generating products and the development of existing and new activities.
Benefits for shareholder:
The goals are:
- EPSO-G Group’s average return on equity must be at least equal to the rate set by the Government and the return on equity must be at least equal to the average of western EU countries.
- In the medium term, EPSO-G’s objective is to focus on the implementation and financing of strategic energy projects and, in the long term, to plan for an annual dividend of at least EUR 20 million once the 2030 strategy is implemented.