Regardless of hydrological drought and longer fish spawning period that resulted in decreased production volumes at Kruonis Pumped Storage Hydroelectric Power Plant (Kruonis PSHP) and Kaunas Algirdas Brazauskas’ Hydroelectric Power Plant (Kaunas HPP), financial results of Lietuvos Energijos Gamyba increased moderately during the first 6 months of 2019. If compared to the same period in 2018, the company’s revenue increased by 20% and reached EUR 76.4 million.
Lower production volumes have been compensated by a positive result of the stocked fuel oil sales and effective use of Kruonis PSHP capabilities, exploiting a highly favourable difference between daily peak and night-time electricity prices. These factors resulted in a 7.5% higher adjusted EBITDA (EUR 29.2 million).
Operating profit margin, profit before tax margin and net profit margin changed insignificantly if compared to the same period last year, whereas operating profit, profit before tax and net profit have increased. The net profit grew by 20% if compared to the first half-year of 2018 and amounted to EUR 28.4 million.
In total, 0.35 TWh of electricity generated in Lietuvos Energijos Gamyba power plants has been sold in January-June this year, 21% less if compared to the same period in 2018 (0.44 TWh).
“Reliable strategic generation and proper preparation for the upcoming synchronization with the Continental European grids remain the top priorities for us. Last May, Lietuvos Energijos Gamyba successfully participated in the test aimed at the partly-isolated operation of the Lithuanian energy system and recovery of the system after the total accident. It is a great proof that we are ready for real-time response and prepared to ensure the supply of electricity to Lithuanian consumers. Furthermore, we have been providing high-quality ancillary services critical to the entire Baltic and Nordic region: in half a year, the secondary power reserve of Kruonis PSHP has been successfully activated 52 times”, comments Rimgaudas Kalvaitis, CEO of Lietuvos Energijos Gamyba.
The company also continued preparatory works for the possible installation of the 5th hydro unit in the Kruonis PSHP: socio-economic and technological alternatives’ studies have been started. In order to prepare for the upcoming power market mechanisms’ auctions and evaluate feasible alternatives of electricity and heating production capacities’ modernisation in Vilnius Combined Heat and Power Plant-3, an environmental impact assessment report has been prepared and submitted for public assessment.
After adopting a new performance strategy 2030 at the end of 2018, this year Lietuvos Energijos Gamyba has paid particular attention to its essential part – energy innovations. A solar park project (1 MW initially) has been launched in Elektrėnai. The project will offer residents of both private homes and apartment blocks a possibility to become producing energy consumers (prosumers). The installation of the solar park should start at the end of 2019.
In Kaunas HPP, a pilot project of 1.2 MW energy storage system has been started – the installation of the battery is planned in the Q2 of 2020. Preparatory works for the installation of a floating solar power plant in the upper-reservoir of Kruonis PSHP has been successfully launched as well.
“Battery energy storage system in Kaunas HPP and the floating solar power plant in Kruonis PSHP are regionally unique solutions. If implemented successfully, projects of such scale would create greater added-value for the shareholders of Lietuvos Energijos Gamyba, contribute to the development of electricity production from renewable energy sources in Lithuania, and get us ahead in the international R&D community”, says R. Kalvaitis.
Key Lietuvos Energijos Gamyba performance indicators for January-June, 2019: