Latvenergo’s subsidiary in Lithuania has rapidly grown revenues and customer numbers
August 29, 2023
After the most successful half-year of its operations, Latvenergo’s subsidiary Elektrum Lietuva has significantly – 2.5 times – increased its revenues, and has 73% more customers this year. As a result, Latvenergo’s overall performance benefitted from revenues generated from the sale of electricity and natural gas, as well as solar energy and electric vehicle charging solutions in neighbouring Lithuania.
The revenues of Elektrum Lietuva, a subsidiary of Latvenergo Group, amount to almost EUR 177 million in the first half of 2023 and are 2.5 times higher than in the corresponding period of 2022 (EUR 68 million). The number of customers using the company’s services for electricity and gas supply, installation of solar power plants, charging points and heating system solutions has increased by 73% year-on-year to 166 000.
According to Mārtiņš Čakste, Chairman of the Management Board of Latvenergo AS, this is the most successful half-year in the company’s 15-year history in Lithuania: “The Lithuanian electricity market is the largest in the three Baltic states, so the successful operation of Elektrum Lietuva allows Latvenergo Group to strengthen its overall position in the Baltic retail market, thus ensuring the sustainability of investments in renewable electricity generation. In Lithuania, we have achieved strong growth in all our energy services and product segments. The number of household customers doubled during the year and our market share has now reached 15%, while the market share of business customers increased by 3% to 33%. However, liberalisation is not yet over and 30% of the population has not yet chosen an independent electricity supplier, so we continue to invest in customer acquisition and loyalty.”
The first half of the year was also very successful for solar products: the company installed 1 118 solar power plants, six times more than in the same period last year. The construction of two solar parks has also been completed. The number of charging stations for electric vehicles for residential customers tripled and the retail market for solar panels and heat pumps was successfully launched. Elektrum Lietuva has actively expanded the country’s green energy generation capacity by developing new solar park projects and purchasing electricity from other generators.
Martynas Giga, Director of Elektrum Lietuva, outlines the next steps in the company’s development: “To become a leading provider of integrated energy solutions, we are focusing on developing long-term investment projects. In the first half of this year, the company invested EUR 6.8 million, and we are preparing for new investment phases – we plan to invest almost EUR 80 million in the development of two new solar parks alone,” says Martynas Giga.
According to Martynas Giga, the development of renewable energy projects remains one of the most important areas of the company’s development, as market demand for sustainable and cost-effective energy solutions is growing rapidly in both the business and residential segments.
“In this context, we will continue to expand our electricity and gas sales, as well as expand green energy generation both in our own solar and wind farms and through power purchase agreements with large green energy generators. The implementation of solar power plants, heating solutions and the expansion of the network of public charging points for electric vehicles will remain priority areas,” notes Martynas Giga.
A new type of charging point – EV charging centres – will soon be added to Lithuania’s EV charging network. Elektrum Lietuva plans to start the construction of two such charging centres along the country’s most important transport arteries – the main A1 motorway and the Via Baltica motorway. The investment in both projects will amount to EUR 4 million, creating 16 fast charging ports.
As the company grows, it is continuously expanding and strengthening its team by recruiting more engineers, designers, experts and customer service specialists. Elektrum Lietuva currently employs 317 people, which has more than doubled in a year.
The company’s constant efforts to improve customer service, investment in new product development, quick reactions and courage to take proactive action have enabled Elektrum Lietuva to firmly establish itself as the number two player in the country’s energy market and, in some business areas, number one.