AST half-year financial results: EUR 50.41 million invested in the development and reliability of the electricity transmission grid
30.08.2024
In the first half of 2024, Latvian transmission system operator JSC "Augstsprieguma tīkls" (AST) invested EUR 50.41 million in the development and reliability of electricity transmission network, of which EUR 31.71 million was allocated to the implementation of the synchronisation with the Continental Europe Synchronous Area (CESA) and EUR 18.70 million was invested in the reconstruction and renewal of substations, transmission lines, and other infrastructure.
AST's net turnover in the reporting period was EUR 77.18 million, including revenue for electricity transmission network services of EUR 46.85 million, with a profit of EUR 12.66 million. A significant part of AST’s profit was driven by dividends of EUR 8.17 million received from its subsidiary “Conexus Baltic Grid” (“Conexus”) for the 2023 fiscal year, according to the AST Group's published report.
The profit for the reporting period was also positively affected by the possibility to cover transmission system service costs with grid-constraint management revenues of EUR 3.46 million. In a decision taken on 22 May 2023, the Public Utilities Regulatory Commission granted AST permission to use accumulated grid-constraint management revenues to cover the costs of transmission system services up to a total of EUR 62.07 million until the end of 2025.
The AST Group, comprising AST and Conexus, recorded net turnover of EUR 127.26 million and a profit of EUR 29.02 million (the Group's consolidated profit does not include dividends received by AST from Conexus). In the reporting period, the revenue from the natural gas transmission segment was EUR 19.73 million, with a profit of EUR 7.07 million. Meanwhile, the revenue from the natural gas storage segment was EUR 30.35 million, generating a profit of EUR 17.47 million.
During the reporting period, AST continued work on preparing the Latvian transmission system for operation in synchronous mode with CESA, disconnecting from the Russian-controlled power system. The synchronisation project is in its final phase. In Latvia, all reinforcements of the 330 kV power grid have been completed, including the restoration of two Latvian-Estonian interconnections, with the opening of the Valmiera-Tsirguliina transmission line this summer. Additionally, for energy system reliability Latvia's first synchronous condenser was installed in Grobina and will be prepared for connection to the transmission grid in the coming months. The second condenser was installed in Ventspils at the end of August, with the third to follow in Līksna by year-end.
Preparatory work is also underway for the construction of high-capacity energy storage battery system stations, AST is developing a control system to enhance frequency control and balancing process after synchronisation with the CESA. In July the electricity transmission system operators of the Baltic states have notified Russian and Belarusian operators on the non-extension of the BRELL agreement. The agreement, which has been defining the terms of operation of the Baltic countries in the Russia-controlled electricity system IPS/UPS, is bound to expire in February 7 of 2025.
Synchronisation with CESA will allow for independent, stable and reliable frequency control of the Baltic states electricity grids and will increase energy security in the region. Synchronisation will also enhance the interconnectivity and market integration of the EU transmission systems, allowing the Baltic electricity systems to operate under unified and transparent European rules, benefiting all consumers. Furthermore, it will foster the development of renewable energy in the Baltic states and Poland, as newly installed power lines, substations and synchronous condensers will increase the ability of transmission grids to support a larger share of renewable sources in overall electricity generation. The synchronisation project is implemented with the co-financing of the European Union, exceeding EUR 300 million in Latvia alone.
The financial statements are available on the AST website: https://www.ast.lv/en/content/financial-statements#UCFS.
About AST
AST is a Latvian electricity transmission system operator that provides continuous, safe and sustainably efficient electricity transmission throughout Latvia. Its vision is to become the leading transmission system operator in the region, which operatively and successfully implements development-orientated changes. AST owns 68.46% of the shares in the natural gas transmission and storage system operator JSC Conexus Baltic Grid.
Further information:
Līva Jēgere
Head of Communications
Tel. +371 26151344
E-mail: liva.jegere@ast.lv
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