Financial statements

In 2024, AS “Augstsprieguma tīkls” (AST) invested EUR 162.2 million in the development of Latvia’s transmission network, with the majority—EUR 97.4 million—allocated to synchronisation-related projects co-financed by the European Union. During the reporting period, AST achieved a net turnover of EUR 154 million and a net profit of EUR 14,7 million. The strong operational performance was driven by a stable revenue base in line with the transmission service tariff, cost efficiency aligned with the planned budget, and dividend income from its subsidiary AS “Conexus Baltic Grid” (“Conexus”), according to the consolidated and separate annual reports published by AST Group. 

In 2024, AST transmitted 6,015 GWh of electricity to users in Latvia, maintaining a similar volume to 2023 (6,024 GWh). Conexus transmitted a total of 25.2 TWh of natural gas (2023: 29.1 TWh). Meanwhile, gas volumes delivered to the domestic distribution system increased by 7%, reaching 8.8 TWh (2023: 8.2 TWh). During the 2024/2025 storage cycle, the full capacity of the Inčukalns Underground Gas Storage facility—24.8 TWh, including a 1.8 TWh security reserve—was successfully allocated through capacity auctions involving 18 market participants from the three Baltic states, Finland, Norway, Germany, Poland, and Switzerland. This contributed positively to the Group’s financial results, with a net turnover of EUR 258,6 million and a net profit of EUR 22,6 million. 

“2024 was a landmark year for Latvia’s and the Baltic region’s energy sector. The Baltic states completed the final steps towards irreversibly severing energy ties with Russia and integrating with the Continental European energy system. AST played a critical role in this historic transition—the most significant energy independence and security project in the Baltic Sea region in recent decades. We also saw growth in local electricity generation capacities and self-sufficiency, accompanied by a continued decline in electricity prices compared to the previous two years,” said Rolands Irklis, Chairman of the Management Board of AST. 

In 2024, AST, together with the transmission system operators (TSOs) of Lithuania and Estonia, completed the final infrastructure projects to enable the safe disconnection of the Baltic states from the Russian-controlled electricity network on 8 February 2025, and their connection to the European energy system on 9 February—almost a year earlier than initially planned. 

As part of the synchronisation project, AST completed the reconstruction of the Valmiera–Tsirguliina transmission line—the third interconnection between Latvia and Estonia. The first synchronous compensator in Latvia was commissioned in Grobiņa, and energy storage battery systems to enhance network security were installed at AST’s substations in Rēzekne and Tume. In July, AST, together with its Lithuanian and Estonian counterparts, announced the termination of the BRELL agreement, and in November received a positive readiness assessment for synchronisation from European operators. 

Additionally, significant progress was made in establishing the Baltic balancing capacity market platform, where AST played a leading role. From February 2025, this new market will provide the balancing and frequency control reserves necessary for the system. AST experts also developed several network management systems, including a balance management system that supports critical business processes and data exchange for electricity transmission and market operations. This system was recognized with the anual Latvian ICT award “Platinum Mouse”. 

This long-anticipated integration with Europe will strengthen the region’s energy security, contribute to the development of the European internal energy market, and create new business opportunities. Investments in equipment and technologies, supported by EU funding, are crucial to safely integrating large volumes of renewable energy sources and achieving the objectives of the European Green Deal. 

During the reporting period, AST also continued investments in the reconstruction and modernization of substations, investing EUR 16.6 million to ensure secure and continuous transmission network operations. Conexus invested EUR 37.8 million in enhancing the operation of the Inčukalns underground gas storage facility and EUR 9.7 million in the renewal of the gas transmission infrastructure. AST also successfully secured development funding, including EUR 73.2 million from the RePowerEU initiative and EUR 80 million in financing from Luminor Bank AS. 

The development of renewable energy plants is a crucial step in addressing current energy, security, and climate challenges in the Baltic region. In 2024, AST signed connection agreements with 20 developers of wind and solar power plants for large-scale renewable energy projects with a combined capacity of nearly 2,000 MW. It is expected that the first solar plants with a total installed capacity of over 400 MW will be connected to the transmission network this year. “As solar and wind energy continues to develop, Latvia will be able to increase its domestic renewable energy production at lower prices. The growing share of renewable energy in the market will, over time, help align Latvia’s electricity prices with those of the Nordic and Finnish price zones,” added Mr. Irklis. 

New interconnections are also critical for market efficiency and enhanced electricity supply security. In 2024, AST initiated steps to further integrate the Latvian transmission system with neighbouring systems, initiating an environmental impact assessment for a new Ventspils–Brocēni–Varduva line, conducting technical studies for a fourth Latvia–Estonia interconnection, and preliminary assessments for potential new interconnections with Sweden and Germany. 

Further steps towards the development of the electricity market were taken in 2024, particularly to facilitate the integration of renewables. AST, together with Lithuanian and Estonian TSOs, joined the European manually activated balancing reserve trading platform MARI. A key milestone was the successful transition by the Baltic TSOs to 15-minute intraday electricity trading, moving from the previous 60-minute trading intervals. 

During the reporting period, AST also launched and implemented projects aimed at achieving environmental sustainability and promoting biodiversity—initiatives such as a city meadow pilot project, the exploration of rainwater reuse at substations, the installation of bird diverters on rebuilt high-voltage overhead lines, and a methane and greenhouse gas emissions reduction plan for the Group. AST’s sustainability efforts were recognized by the Institute for Corporate Responsibility and Sustainability, awarding it the Platinum Category in the annual Sustainability Index.