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Updated national expectations for EPSO-G: priorities – green energy transition, interconnections, increasing resilience and security, and system flexibility
Globenewswire· 2025-07-03 13:10
Core Viewpoint - The EPSO-G energy group is set to enhance its responsibilities in facilitating the green energy transition, improving international interconnections, and ensuring the resilience and flexibility of the electricity system [1]. National Security - The Ministry of Energy emphasizes the importance of resilience in critical infrastructure, with plans to bolster physical and cyber protection against military and hybrid threats [2]. - EPSO-G is involved in the Lithuanian-German artillery factory project, indicating its role in national security and defense industry investments [3]. International Connections and Networks - Key projects include the Harmony Link electricity interconnection with Poland and strengthening interconnections with Latvia, as well as plans for the Baltic Hub offshore interconnection with Germany [4]. - There are expectations to increase gas flows from the Klaipėda LNG terminal to Central Europe and Ukraine, alongside developing a hydrogen network in the Nordic and Baltic regions [5]. Energy Green Transformation and System Flexibility - By 2028, Lithuania aims for at least 8 GW of electricity generation capacity from renewable sources, with EPSO-G expected to lead in integrating renewable energy and managing energy flows [7]. - The Group will assess dynamic transmission tariffs and explore long-term energy storage possibilities [7]. Financial Expectations - EPSO-G's adjusted average return on equity must meet or exceed government benchmarks, and investment returns should align with those of mature Western European economies [9]. - The Group is required to maintain an investment-grade credit rating of no lower than Baa2 and manage net debt to adjusted EBITDA ratios effectively [10]. Operational and Sustainability Principles - EPSO-G must adhere to high standards of transparency, governance, and social responsibility, following best practices as per Lithuanian laws and OECD recommendations [12]. - The Group is committed to achieving net-zero greenhouse gas emissions by 2050 and supporting the United Nations Sustainable Development Goals [13]. Company Structure - The EPSO-G Group comprises the management company EPSO-G and six subsidiaries, with the Ministry of Energy acting as the sole shareholder [14].