AST 2025 Annual Report: A Year of Energy Independence and Technological Breakthrough for Latvia

In 2025, the revenue of Latvia’s transmission system operator AS “Augstsprieguma tīkls” (AST) amounted to EUR 266.01 million, including EUR 94.19 million in revenue from electricity transmission network services, according to the audited AST Group financial statements for 2025. During the reporting period, AST’s profit was EUR 19.50 million (EUR 14.76 million in 2024), driven mainly by dividends received from subsidiary AS “Conexus Baltic Grid” (Conexus) in the amount of EUR 13.34 million. AST also maintained strong profitability in the electricity transmission segment (EUR 6.15 million), despite a significant increase in costs related to accelerated synchronisation and large-scale investments.

Following the integration of the Baltic power systems into the Continental European grid and amid growing renewable generation, the reporting period saw increased demand for balancing energy and balancing capacity, along with the associated costs and revenues. These revenues, together with congestion management revenues* allocated to cover transmission service costs, contributed to an increase in AST’s revenue by EUR 111.99 million. AST’s profit increased by EUR 1.74 million, or 9.8%, compared to the unaudited interim financial statements for 2025, due to additional revenues from capacity congestion management. AST will pay EUR 13.65 million in dividends to the state budget from the Company’s profit.

“2025 is a year of energy independence and technological breakthrough for Latvia’s power system: we have implemented major measures related to energy independence and security – the synchronisation of the Baltic power grids with Europe, completion of all synchronisation-related infrastructure projects, strengthened cybersecurity, and the development of new transmission grid connections to integrate renewable resources. We also have ambitious plans for the coming years and intend to continue actively attracting European Union funding to support their implementation,” emphasises Rolands Irklis, Chairman of the Management Board of AST.

In 2025, the volume of electricity transmitted to users in Latvia increased by 1.7% to 6,118 GWh. The Public Utilities Commission has allowed AST to use accumulated congestion management revenues to cover the costs of transmission system services until the end of 2025, up to a total of EUR 62.1 million. In 2025, EUR 45.45 million was used and recognised as revenue to cover total transmission service costs, including balancing capacity.

To strengthen security of supply and ensure the availability of transmission services, AST’s investments in the electricity transmission network reached EUR 182.85 million in 2025. Of this, EUR 90.84 million, with significant EU co-financing, was invested in synchronisation-related projects; EUR 16.7 million was invested in the reconstruction and refurbishment of substations and transmission lines; and EUR 51.07 million was invested in establishing transmission grid connections for new solar and wind power plants, as well as energy storage battery systems, financed by developers.

In 2025, Conexus’ revenue in the natural gas transmission segment amounted to EUR 48.25 million, and profit before corporate income tax was EUR 6.62 million. The 66% increase in profit compared to the previous year was mainly related to asset revaluation carried out in 2024. In the natural gas storage segment, revenue during the reporting period amounted to EUR 41.57 million, while profit before corporate income tax was EUR 21.76 million, which is 42% lower than in the previous year. The decrease in profit is primarily related to a 31% drop in revenues from natural gas storage services compared to the previous year. The decline in storage service revenue is linked to a reduction in storage capacity reservations.

In 2025, the AST Group’s net turnover was EUR 355.82 million (EUR 258.61 million in 2024), while net profit increased from EUR 22.67 million in 2024 to EUR 29.25 million in 2025.

Key events during the reporting period:

The Baltic States successfully connected to the European power grid: On 9 February 2025, Estonia, Latvia, and Lithuania successfully synchronised their electricity systems with the Continental European grid. This was a major historic milestone for the Baltic States and for Europe, strengthening the region’s energy resilience and independence. Synchronisation enables the Baltic States, in close cooperation with other Continental European countries, to manage their electricity networks independently, ensuring stable and reliable frequency control and significantly improving regional energy security.

The Baltic balancing capacity market successfully launched: In February 2025, the Baltic balancing capacity market established by the transmission system operators of Estonia, Latvia, and Lithuania started operation. The new market ensures the capacity reserve required for system balancing and frequency control following the disconnection of the Baltic power systems from the Russia-controlled system and synchronisation with Continental Europe. In the future, as the share of renewable energy increases, the capacity market will also become an important tool for market participants, enabling additional revenue opportunities.

Long-term stability of transmission tariffs maintained: The Public Utilities Commission approved AST’s electricity transmission tariffs for the next three years, effective from 1 January 2026. AST has ensured tariff competitiveness in the Baltic region and long-term stability, even reducing tariffs for certain user groups. AST has managed to maintain transmission tariff stability despite challenges in the previous regulatory period and ambitious development plans aimed at strengthening power system security and reinforcing the grid in the coming years.

Rapid development of renewables: In 2025, eight renewable energy power plant connections were established, including six new connections and two modifications of existing connections, enabling the connection of 505.8 MW of capacity to the transmission network. Overall, 30 agreements were concluded during the reporting period for the installation of new connections or changes to technical parameters of existing connections, providing for the connection of 2.9 GW of renewable capacity to the electricity transmission system: 0.6 GW wind power plants, 0.8 GW solar power plants, and 1.6 GW hybrid power plants using various technologies.

Work on new interconnections and reinforcement of the grid: AST continued work on developing new cross-border interconnections with neighbouring electricity transmission systems. During the reporting period, the environmental impact assessment continued for the construction of the 330 kV transmission line “Ventspils–Brocēni–Varduva”, and studies were initiated to prepare the development of the 4th Latvia–Estonia interconnection as a subsea cable.

Electricity market model development: To support renewable generation development and introduce broader competition — both by expanding the market geographically and by introducing new types of services — European transmission system operators (TSOs), including AST, and power exchanges continue to improve the electricity market model. A key step in this process was the transition from a 60-minute to a 15-minute trading period in the day-ahead electricity market across Europe, implemented on 30 September 2025, with the first delivery day under the new regime on 1 October. This change enables Baltic TSOs to plan and procure balancing capacity reserves more accurately and to reserve intersystem capacity required for balancing the electricity system. For balancing capacity market participants, it provides an opportunity to offer capacity for shorter periods and to plan delivery periods more precisely.

The first publicly accessible biomethane injection point: Conexus opened the first publicly accessible biomethane injection point in Latvia in Džūkste. It is projected that up to 100 thousand MWh of biomethane could be injected annually at the Džūkste point. The project will support the integration of green energy into the overall gas system, and similar points are planned to be developed elsewhere in Latvia in the coming years.

Modernisation of the Inčukalns Underground Gas Storage (UGS) facility: Final works continue in the EU co-financed modernisation project of the Inčukalns UGS facility, including upgrades to above-ground infrastructure, reconstruction of gas collection point No. 3, well refurbishment, modernisation of five existing gas compressor units, and installation of a new compressor unit — enhancing natural gas supply security, increasing storage capacity, and supporting integration into the international energy market.

EU funding for the study of the North–Baltic Hydrogen Corridor: EUR 6.8 million in funding has been secured for further study of the North–Baltic Hydrogen Corridor, enabling in-depth technical, economic, regulatory, and environmental analyses to assess the feasibility of developing a large-scale hydrogen pipeline network in the Baltic Sea region. Conexus is actively involved in project implementation.

The financial statements are available on the AST website: https://www.ast.lv/en/content/financial-statements. Alongside the AST Group financial statements, a Sustainability Report prepared in accordance with the ESRS standard (European Sustainability Reporting Standards) has also been published. 

The AST Group comprises the parent company AST and its subsidiary, the unified natural gas operator Conexus, in which AST holds a 68.46% stake. The Group’s core activities include electricity transmission system operation, efficient management of electricity transmission assets, natural gas transmission, and storage.

* Congestion management revenues arise from electricity price differences on the power exchange between bidding zones and from auctions of Financial Transmission Rights (FTR options) for cross-border interconnection capacity.

About JSC "Augstsprieguma tīkls"

AST, the Latvian electrical power transmission system operator, ensures uninterrupted and secure transmission of electricity throughout Latvia. Its vision is to become the leading transmission system operator in the region through the efficient and successful implementation of development-oriented changes. AST has 68.46% shareholding in the capital of the operator of the natural gas transmission and storage system JSC “Conexus Baltic Grid”.