30.05.2025.
In the first quarter of 2025, Latvia’s electricity transmission system operator AS Augstsprieguma tīkls (AST) invested EUR 29,54 million in power transmission assets. Of this total, EUR 13,37 million— substantially co-financed by the European Union—was allocated to synchronisation-related infrastructure projects. An additional EUR 2,94 million was directed toward the reconstruction and modernization of substations and transmission lines, and EUR 6,93 million was invested in establishing new grid connections for renewable energy power plants, funded by developers.
AST’s net turnover for the reporting period was EUR 57,27 million, including EUR 24,13 million in revenue from electricity transmission services. Net profit reached EUR 1,3 million, according to AST Group’s published financial report. Compared to the corresponding period in 2024, revenue increased by EUR 16,41 million, primarily due to the use of congestion management revenue to cover electricity transmission service costs. Based on the Public Utilities Commission’s (PUC) decision on May 22, 2023, AST is authorized to use accumulated congestion revenues—up to EUR 62,1 million—to cover transmission service costs until the end of 2025. In the first quarter, AST utilized and recognized EUR 18,04 million from these funds to cover overall transmission service costs, including balancing capacity.
“During the reporting period, the Baltic States completed the strategic decoupling from the Russia controlled energy system and successfully integrated with the Continental European energy system – marking a major step toward Latvia's energy independence and security. The launch of the unified Baltic balancing capacity market has been instrumental in this transition. With the growing share of renewable energy resources in the system, the demand for balancing reserves needed to maintain system stability increases, as do overall system maintenance costs. Until July 1, these costs are covered by AST from previously accumulated congestion management revenues. As is typical in newly established markets, short-term price fluctuations are observable, however, with increasing competition and market maturity, prices are expected to stabilize. Once AST's battery energy storage systems are operational, a further reduction in balancing costs is anticipated,” said AST Chairman of the Management Board Rolands Irklis.
The AST Group consists of the parent company AST and its subsidiary Conexus Baltic Grid, the unified natural gas transmission and storage operator, of which AST owns 68.46% of the share capital. The Group’s core operations include managing electricity transmission assets, ensuring reliable grid operation, and providing natural gas transmission and storage services.
In the reporting period, the AST Group’s net turnover amounted to EUR 90,24 million (EUR 72,55million in the same period of 2024), while net profit reached EUR 16,97 million (EUR 19,11 million in Q1 2024). The decline in profit by 11 % is mainly attributed to lower profits in the natural gas transmission segment.
Baltic Synchronisation Completed
A historic achievement for the Baltics and all of Europe was reached on February 9, 2025, when Estonia, Latvia, and Lithuania successfully synchronised their energy systems with the Continental European grid. This synchronisation enables the Baltic countries to operate their grids in close cooperation with other European partners, ensuring stable and reliable frequency control and significantly enhancing regional energy security. Achieving this milestone required substantial infrastructure investments across the Baltic States and Poland. During the reporting period, AST continued strengthening grid reliability by preparing synchronous condensers in Ventspils and Līksna for operation. The Ventspils station is already connected to the grid, with Līksna scheduled for connection in October as planned. Installation of battery systems in Rēzekne and Tume also progressed during the period.
Baltic Balancing Capacity Market Launched
On February 4, 2025, the unified Baltic balancing capacity market was successfully launched. In this market, the transmission system operators (TSOs) of Latvia, Lithuania, and Estonia procure the balancing capacity required for secure system operation. Market participants, in turn, can earn revenues by offering balancing services—adjusting electricity generation or consumption upon TSO request. More than 10 participants across the Baltics (including four from Latvia) have qualified, ranging from thermal power plants, hydropower stations, solar and wind farms to battery systems. AST continues actively qualifying new participants, with 26 resources under technical evaluation in Latvia, the majority being solar power plants.
As competition increases and AST’s energy storage systems become operational, balancing service costs are expected to decrease. The battery systems in Rēzekne and Tume, with a combined capacity of 80 MW and energy storage of 160 MWh, are estimated to generate annual savings of approximately EUR 20 million.
Expanding Renewable Energy Connections
During the reporting period, AST continued to advance new grid connections for renewable energy projects. This year, eight renewable energy power plants are scheduled to be connected to the transmission network. By the end of 2025, conditions will be in place for approximately 550 MW of new renewable generation to operate and feed energy into the grid—marking a significant contribution to Latvia’s domestic generation and climate goals.
Currently, 32 renewable energy projects are in various stages of development, with planned transmission grid connections and a total capacity of 4 GW. AST has already signed 23 connection agreements, with a combined capacity exceeding 2 GW. This includes around 1,600 MW from solar power plants—600 MW of which will be paired with battery energy storage systems (BESS)—and approximately 600 MW from new wind farms, about 60 MW of which will also be complemented by BESS. Overall, BESS capacity in solar and wind projects is expected to reach around 660 MW. In May, the first large-scale solar park began operations.
More information is available in the full report published on AST’s website: https://www.ast.lv/en/content/financial-statements
About AS Augstsprieguma tīkls
AST is Latvia's power transmission system operator, which ensures continuous, secure and sustainably efficient power transmission throughout Latvia. Its vision is to become the region's leading transmission system operator, which implements development-oriented changes efficiently and successfully. AST owns 68.46% of shares in the natural gas transmission and storage system operator AS Conexus Baltic Grid.
For further information, please contact:
Līva Jēgere,
Head of Communications,
Phone: +371 26151344.
E-mail: liva.jegere@ast.lv