Dear participants, welcome to Ignitis Group Full Year 2025 Earnings Call. Thank you for joining us today. Today, CEO and CFO of Ignitis Group will provide an overview of the group's strategic progress and financial results for the reporting period. This will be followed by a question and answer session. Before we begin, I would like to remind you that today's presentation contains forward-looking statements that are subject to risks and uncertainties. These statements are based on management's current beliefs, expectations, and assumptions, and actual results may differ materially from those expressed or implied. I now invite Darius to present the strategic highlights.
Good afternoon, everyone, and thank you for joining our full year 2025 results call. In 2025, we delivered strong strategic progress with key highlights as follows: Our adjusted EBITDA reached EUR 546 million, representing a 3% year-over-year increase and exceeding the top of our guidance range communicated to the market. Second, we increased our green generation capacities installed by 700 MW to 2.1 GW. We also completed the smart meter rollout. In total, we installed 1.3 million smart meters. Third, a debut asset rotation program transaction. We have reached an agreement to dispose a 49% stake in Vilnius CHP. 100% of assets equity is valued at EUR 244 million, and according 49% at EUR 120 million.
It represents 4.6x multiple over our equity invested. Lastly, in line with our dividend policy for 2025, we intend to distribute a dividend of EUR 1.366 per share, representing a 3% increase over the previous year. Now, let me take you through the progress we made in each business segment over 2025. First, the progress of our largest business segment, green capacities development. In 2025, we completed six projects, bringing installed capacity increase to a current 2.1 gigawatt. It includes Kelme Wind Farm, the largest onshore wind farm in Baltics; the second, Silesia Wind Farm, one of the largest onshore wind farms in Poland; and the largest solar farm cluster in Latvia, comprising Vārme, the first and the second Stelpe solar farms.
By technology, we added 451 MW of onshore wind and 263 MW solar. By country, 314 MW of new capacity was installed in Lithuania, 239 MW in Latvia, and 161 MW in Poland. Moving further, since our 9-month results earnings call, the National Audit Office, following a decision by the Parliament, prompted by its Commission for Energy and Sustainable Development, carried out a state audit review of Curonian Nord Offshore Wind Project and provided three recommendations. Based on these recommendations, Ignitis Renewables, the project implemented company, will transfer the assets created, the work done, and obligations assumed in relation to Curonian Nord project to its wholly-owned subsidiary, Offshore Wind Farm One.
We'll revise the agreements concluded with the suppliers performing, seabed service, as we'll conduct an analysis of internal and external factors affecting the project and will represent the results to the stakeholders. We already implementing the recommendations. Next, Mažeikiai Battery Energy Storage System project was awarded EUR 2 million in state aid. This brings the total state aid secured for our three battery projects to around EUR 15 million. Finally, we upgraded the power plant control center at Kruonis Hydro Pumped Storage. The new control center enables centralized and automated management of Kruonis Hydro Pumped Storage, Kaunas Hydroelectric Power Plant, and Elektrėnai Complex, strengthens cybersecurity and operational reliability, enhances Group's ability to provide frequency control and balancing services. Finally, the most notable highlight after the reporting period, a debut of asset rotation program transaction.
We have reached an agreement with Quaero Capital to dispose a 49% stake in Vilnius CHP. Quaero Capital is Switzerland-based infrastructure fund with EUR 3.8 billion in assets under management. Based on transaction valuation, 100% of Vilnius CHP equity is valued at EUR 244 million. The value of 49% of Vilnius CHP shares acquired by Quaero Capital amounts to EUR 120 million. It consists of EUR 110 million fixed and EUR 10 million conditional earn out payment, which depends on successful results of Vilnius CHP. The group has initially invested EUR 26 million of equity into this 49% stake, which effectively means that transaction generates 4.6 times more money multiple for Ignitis Group.
After the completion of the transaction, the group will continue to retain control of Vilnius CHP, holding 51% of the shares. We expect to sign the agreement by the end of March, after the decision at our annual general meeting of shareholders, and to close the transaction in Q2 of this year. This transaction will also ensure compliance with European Commission's decision related to the EUR 138 million support for the project received. Let me highlight that this is one of the largest foreign direct investments in the Lithuania over last few years. We will use the capital raised during this transaction to further development of green capacities and networks, while having a positive impact on the group's leverage metrics. Let me now briefly recap key updates of our second-largest business segment, networks.
Firstly, the regulator has approved our EUR 3.5 billion, 10-year investment plan for distribution networks, extending up to 2033. This marks a 40% increase in investments. Next, as mentioned during our nine months results earnings call, the regulator has also set RAB at EUR 1.9 billion, weighted average cost of capital at 5.74%, and traditional tariff component at EUR 51.8 million for 2026. Finally, most recently, we completed the mass smart meter rollout with 1.3 million of smart meters installed. Next, turning to reserve capacities business segment. Over 2025, we strengthened our generation backbone by completing the major CCGT overhaul, continuing overhaul of unit seven at Elektrėnai Complex. Both initiatives are enhancing reliability and availability of our flexible assets.
We also delivered strong performance in Polish capacity auctions, securing three auction wins and more than 1 GW of capacity for periods in 2026 and 2030. Finally, following the synchronization of Baltic grids with continental Europe, in February 2025, the regulator introduced new rules governing additional profit from the related new services. The regulation remains in effect until the end of 2026 and will apply to isolated system reserves, services delivered by Elektrėnai Complex. Finally, turning to our customers and solutions business segment. The key milestone here is the strong progress we made in expanding our fast charging network across the Baltics. In 2025, we nearly doubled the number of installed charging points, reaching 1,800 units. As a result, our charging network now covers more than 90% of the Baltic States territory.
With our progress on business segments in 2025 covered, I would now like to highlight the key developments in our sustainability performance. In 2025, our net electricity generated increased by 41% to almost 4 TWh. The increase was driven by generation at Elektrėnai Complex in relation to new services provided. Additionally, the growth was supported from our green capacities assets, driven by new assets launched, Kelme Wind Farm and Silesia two wind farms. However, our green share of generation decreased by 11 percentage points to 70% due to proportionally higher electricity generation at Elektrėnai Complex. Looking at our greenhouse gas emissions, it amounted to 4.5 million tons of carbon dioxide equivalent, representing a 10% year-over-year increase. This increase was primarily driven by a 55% increase in Scope 1 emissions, largely due to ancillary services provided by Elektrėnai Complex.
Scope 2 decreased by 4%, and scope three emissions increased by 4% due to the higher natural gas use at Elektrėnai Complex, and a higher share of natural gas-related emissions attributed to networks distribution activities. Next, on our safety. In 2025, we recorded no fatal accidents. Both our employee and contractor TRIR stands at 0.7, well below the targeted threshold. Finally, as a result of our continuous efforts, we are recognized for our leadership in corporate transparency and performance on climate change by securing a place on Climate A List, which includes top 4% of companies scored by CDP. Finally, let me briefly touch on the group's governance. Based on the majority shareholders' expectations, a number of supervisory board members was increased by two members to nine in order to form supervisory board committees from among its members.
Therefore, in October, a Supervisory Board term approached the end, our general meeting of shareholders has elected new Supervisory Board, comprising a nine members, six independent members, and thre representatives of majority shareholder for our four-year term. Regarding its composition, six out of nine members, including the chair, are independent, and seven out of nine members were reelected, ensuring continuity. Finally, after the reporting period, the Supervisory Board selected candidates for the Management Board, who are expected to take office on twenty-sixth of March, 2026. With four out of five members being reelected, we will ensure continuity in Group's strategy. With the strategic performance overview concluded, I will now pass it over to Jonas for the financial update.
Thank you, Darius, and hello to everyone on the call. Let me start by presenting to you our consistent plan outperformance. 2025 marks the fifth straight year of our adjusted EBITDA, delivered above guidance. Since our IPO, we have exceeded our guidance in every year, demonstrating a strong execution track record. This reflects our disciplined operational performance and our ability to execute on strategy while navigating changing market conditions. Now, let's look at 2025 guidance achievement in more detail. Our adjusted EBITDA reached EUR 546 million in 2025 and exceeded the upper end of our latest guidance range. To remind you, our most recent guidance, published in November, was between EUR 510 million and EUR 540 million. The outperformance was mainly driven by better-than-expected results in Q4, particularly in the customer and solutions and green capacity segments.
At the same time, the performance of all other business segments was in line with our directional guidance, except for reserve capacity. Moving to investments, in 2025, we invested EUR 720 million, we're in line with our expected guidance range. Let's turn to the financial highlights of the year. Adjusted EBITDA grew by 3% year-over-year and reached EUR 546 million, driven by strong results in green capacities and networks. Adjusted net profit decreased by 19% and amounted to EUR 226 million, mainly due to lower result of the customers and solutions segment, as well as lower financial activity results. Our investments amounted to EUR 720 million, with 53% allocated to the networks and 40% directed to green capacities.
Return on capital employed decreased by 1.5 percentage points to 7.5%, mainly due to the lower result of the customers and solutions segment. Our main leverage metric, FFO to net debt, decreased to 21%, while net debt to adjusted EBITDA increased to 3.5x. As a reminder, back in September, S&P reaffirmed our BBB+ credit rating with a stable outlook. For 2025, we intend to distribute a dividend of EUR 1.366 per share, which is 3% higher than previous year and in line with our dividend policy. This results in a dividend yield of above 6%. Moving on, let's now take a closer look at each of our key performance indicators. Starting with adjusted EBITDA.
Green capacities grew by 11% to EUR 291 million, driven by new assets launched and new services provided. Networks grew by 20% and amounted to EUR 263 million, mainly due to higher RAB, as a result of continued investments in our electricity network and higher WACC set by the regulator. Reserve capacities decreased by 10% to EUR 38 million, mainly due to lower availability, due to planned major overhaul of the combined cycle gas turbine unit and lower captured gross profit margin. Our customers and solutions EBITDA was negative EUR 48 million, which was mainly driven by adverse effect of prosumers under the current net metering scheme. Let's take a closer look at the EBITDA performance of each segment in more detail. Starting with green capacities.
The main drivers behind 11% year-over-year increase were, firstly, the launch of new assets, including Silesia two wind farm in Poland, Kelme wind farm in Lithuania, Stelpe and Vārme solar farms in Latvia, which together increased our installed capacity by 50% and brought very sizable 700 of new megawatts online. Secondly, stronger performance from flexible assets and newly introduced balancing capacity services. Moving on to the network segment, the growth in network-adjusted EBITDA was mainly supported by two factors. First, higher regulated asset base, which increased by 13% from EUR 1.6 billion to EUR 1.8 billion, driven by continued investments into electricity network. Second, an increase in the WACC set by the regulator, which increased from 5.1% in 2024 to 5.79% in 2025.
Looking ahead, in 2026, the regulator set RAB at EUR 1.9 billion, representing a 6% increase, while the WACC was set at 5.74%, to a similar level as in 2025. Reserve capacity segment. We achieved strong performance in both 2024 and 2025 in this segment. The results fell by 10% year-over-year, totaling EUR 38 million in 2025. The decline was driven by lower availability related to the planned major overhaul of the combined cycle gas turbine unit, as well as lower captured gross profit margin. Customers and solutions adjusted EBITDA amounted to negative EUR 49 million. Both electricity and natural gas results, natural gas supply results declined year-over-year.
On the electricity side, the decrease was mainly due to prosumers under the current net metering scheme and negative effect from increased balancing prices. On the natural gas side, B2B supply result was lower, mainly because more favorable margins were secured in 2024. Now, let's turn to our investment activities. In 2025, our investments amounted to EUR 720 million. Year-over-year, investments declined by 11%, mainly due to lower investments in green capacities, as six projects reached commercial operation dates, and as we are becoming very selective in which new opportunities we pursue. In green capacity segments, investments decreased by 34% to EUR 286 million. In 2025, our main investments were directed towards onshore wind, solar, and hydro pump storage projects.
In the network segment, we invested EUR 383 million, which is 13% higher than last year. The growth was primarily driven by higher investments in electricity grid expansion through new customer connection points and upgrades, as well as higher costs to connect new customers as they were located more remotely. Next, a brief overview of our free cash flow. FCF amounted to negative EUR 192 million and remained broadly flat year-over-year. Turning to our leverage metrics, net debt increased by 19% and amounted to EUR 1.9 billion at the end of 2025. FFO decreased as well, driven by the temporary regulatory differences, our main leverage metric, FFO to net debt, decreased to 21%. Net debt-adjusted EBITDA increased from 3.1x to 3.5x.
Despite worsened leverage metrics, back in September, S&P has reaffirmed our BBB+ credit rating with a stable outlook. Our guidance for 2026. We expect our full year 2026 adjusted EBITDA guidance to be in the range of EUR 550 million-EUR 600 million. We anticipate growth in networks and customers and solution segments, while green capacities and reserve capacities are expected to remain stable compared to 2025. In terms of investment guidance, we expect investments to be lower compared to 2025, within the range of EUR 590 million-EUR 690 million. In 2026, the investment program will focus on networks and flexibility investments.
Although the investments remain at historically high levels, but the year-over-year reduction demonstrates that we are being even more selective in which opportunities we pursue and reflects our disciplined investment decision-making process. With that, I will hand over to Darius to conclude our presentation.
Thank you, Jonas. Let me summarize Ignitis Group performance. In 2025, we delivered strong strategic progress. The key highlights as follows: First, our adjusted EBITDA reached EUR 546 million, representing a 3% year-over-year increase and exceeding the top of our guidance range communicated to the market. Second, we delivered increased our green capacities installed by 700 MW to 2.1 GW. We also completed the mass smart meter rollout. In total, we installed 1.3 million smart meters. Third, a debut asset rotation program transaction. We have reached an agreement to dispose a 49% stake in Vilnius CHP, 100% .
... of the assets, equity is valued at EUR 244 million, and according to 49% at EUR 120 million. It represents a multiple of 4.6x over our equity invested. Fourth, in line with our dividend policy for 2025, we intended to distribute a dividend of EUR 1.366 per share, representing a 3% increase over the previous year. Lastly, for 2026, we expect adjusted EBITDA to be in the range of EUR 550 million-EUR 600 million, and investments in the range of EUR 590 million-EUR 690 million. With that, I would like to thank you for listening.
Thank you to the speakers. We will now proceed with the Q&A session. Our first question is: regarding Vilnius CHP asset rotation deal, could you please indicate what kind of a premium on invested equity capital you are getting adjusted for the EU support? If my math is right, then I'm getting around 28%.
Thank you. In terms of the premium on invested equity capital, we need to compare apples with apples, we need to look at equity, which we invested in the business and what we are getting out of this transaction. In this case, for the 49% stake, we have invested EUR 26 million and we are getting EUR 120 million out of it. The gain of it out of the transaction is close to EUR 100 million.
Our second question is also on the asset rotation. Could you please give us some flavor on the asset rotation market demand for renewable assets in the Baltics in general? What kind of assets are investors looking for, capacity, thresholds, deal size? What kind of premiums could be reasonably expected? Who are those intra investors in general?
Yes. In terms of flavor on the asset rotation market, I think the only CHP transaction is a good illustration that there is demand for quality assets. That being said, of course, the pool of investors looking in the region is a bit more narrow than several years ago due to geopolitical situation. Nevertheless, the interest is there. In terms of premiums, which can be reasonably expected, Vilnius CHP transaction with four and a half times multiple on money invested, that's obviously on the higher end of the spectrum.
But in any case, we would proceed with the further asset rotation transactions only in case we can earn the right sort of premium for each asset.
Thank you. Next question: Kruonis PSP generated 459 GWh of electricity last year. Could you please roughly indicate how much electricity output will be shaped off this year due to the repair works at the plant?
I think it is very important to stress that Kruonis usually operates with one or two units. With all four units, it operates very rarely, less than 1% of the time, which means that both the breakdown of the unit and also the repair should not have a significant impact on the results of Kruonis.
The following question: earnings per share decreased from EUR 3.82 in 2024 to EUR 2.26 in 2025, representing a year-over-year decline of around 40%. Could you please elaborate on the main factors that contributed to such a significant decrease in EPS? Additionally, what actions does Ignitis plan to take in order to restore EPS to previous levels?
Yes. In terms of year on year decline, I think we need to look at the main reasons first. There are two reasons why reported earnings per share and reported net profit have decreased. Two main reasons. One of those reasons is our customers and solutions segment result. And the second reason is temporary regulatory differences in our networks business. Which means that this year we have returned more over collected regulatory amounts than usual, which was close to EUR 70 million this year.
These two items, actually, almost fully explain the drop in our net profit, temporary regulatory differences in network segment and the customers and solutions result. And if we look at each of them, the networks effect is temporary, and the customers and solutions effect, we treated also as temporary. And when we will see an update of the regulation on prosumer side, we expect this loss to go away. Essentially, both of these items, which have driven net profit down, are of temporary nature. As soon as these are gone, we will be back to EPS of the previous levels.
The ambition is to even go above that. In terms of actions, what are we doing in order to improve our EPS? We are working both on the growth elements of it, so building new assets and expanding our network, but also a significant amount of emphasis is being put on operational efficiencies and making sure that each megawatt hour produced, distributed, or sold generates as much value as possible.
One more question. Customers and Solutions segment has been generating negative adjusted EBITDA each quarter since Q2, 2024. Could you please clarify the main reasons why the retail business is currently generating such significant losses for the group? Additionally, when can investors reasonably expect the segment to return to positive for profitability? In other words, at what point does Ignitis expect that the retail business in Lithuania will operate on a sustainable basis without effectively being subsidized at the group level?
Yeah. In terms of the reasons, we have discussed it a bit, in the previous calls. In short, there are two main reasons this year for the loss-making operations. The larger of them is prosumer regulation. Prosumers are generating the biggest part of the loss. Also this year, we had a negative impact due to a high imbalance cost for this particular segment. In short, when the prosumer situation is solved, we would expect to get back to profitable levels in this segment.
Next question: regarding Vilnius CHP stake sale. The announcement mentions an equity investment of EUR 52 million, while 49% of the shares are being sold at EUR 120 million. What is the expected one-time net profit capital gain that Ignitis Group will recognize in its 2026 financial statements from this transaction? Could you elaborate on the earn-out component of up to EUR 10 million? What specific operational or financial milestones must Vilnius CHP achieve by 2026 to trigger this payment? How will this transaction impact the group's leverage and net debt adjusted EBITDA ratio? Will the proceeds be reinvested into new greenfield projects or used to optimize the current debt structure? Is Vilnius CHP's stake sale a one-off event? If it's a recurring strategy, are you planning to use asset rotation for wind and solar parks?
Yes. In terms of starting so one by one. First of all, in terms of one-time net profit capital gain, it will not be recognized in our case due to IFRS treatment. Because we are keeping the control of the asset, we will continue to consolidate Vilnius CHP fully in our results, which then by the standard means that we do not recognize the gain. To illustrate to you the size of the gain, so if we would have sold 100% of the shares at the same valuation, so at EUR 244 million, then we would have accounted a gain of close to EUR 200 million.
The logical gain is for 49% stake, is EUR 120 million, less EUR 26 million, which results in EUR 94 million gain. It will not be recorded because we continue to consolidate fully Vilnius CHP in our books. In terms of the earn-out, earn-out will depend on the results of Vilnius CHP, and we think that earn-out is very much achievable. In terms of impact on the group leverage, it will have direct positive impact by the same EUR 100 million. It will reduce our net debt by this amount.
How we will use the proceeds of the transaction? We will use the proceeds for our investment program, both in green capacities and networks business. We don't expect to repay any existing debt with the proceeds. In terms of whether it's a one-off event or not, asset rotation is part of our long-term strategy. We do intend to continue selling 49% stakes in our assets. That being said, we will not be doing that at any price. We will be doing that only at attractive price points, like in this case.
Next question: What is your view on midterm free cash flow? Will there be an increased focus on bringing leverage down from current levels?
In terms of free cash flow, indeed, the goal and the trend what we are seeing and what we want to see is the reduction in negative free cash flow. That will indeed result in stabilizing of the leverage metrics.
One more question. Why do you expect flat EBITDA and reserve capacities this year? Would appreciate some granularity.
In terms of reserve capacity, so in very high level, there are two elements which will make the result makes us to expect a flat result. One is that we expect slightly weaker result on the balancing services side, because with new BESS being launched, that will reduce our earnings in that market. On the flip side, we have had planned overhauls in 2025, and we don't expect those to such an extent in 2026, which will result in a positive impact. That's why these two cancel each other out, and that's why we expect a flat performance in the reserve capacities.
One more question. Looking at Q4 results, they appear somewhat weaker compared to previous quarters. Could you specify the main drivers behind this performance? To what extent was this influenced by lower electricity prices, higher balancing costs, or one-off expenses? Regarding the upcoming legislative changes of prosumers, in your view, is the current draft of the law sufficient to fully address and mitigate the losses associated with net metering system? Do you have high confidence that these laws will be passed and implemented in the first half of 2026? Regarding balancing costs, do you see a downward trend emerging, especially considering the upcoming launch of new battery storage systems in the market? To what extent will these assets help stabilize the group's balancing expenses in the near future? What is the current status of your own battery storage projects?
Can we expect the first pilot grid connections or commissioning to take place within this year?
Okay, let's take it one by one again. In terms of Q4 performance, in our view, it is broadly in line with what we had expected. We did have some lower wind and lower hydro resource than we have planned. For instance, the balancing costs, prosumer effect, were even slightly better than we expected. For us, Q4 is more or less where we had expected it to be.
In terms of prosumer legislation, the currently proposed changes, we think they are okay and they solve a sizable amount of an issue. Of course, we still need to see how the final version will look like and that will depend on later, you know, on the decisions made in spring this year. In terms of the balancing costs, naturally, the balancing market will normalize when more and more battery storage systems are launched. It will. If you remember, in the group, we have a twofold impact of this.
Yes, it, this normalization in the balancing market helps us to balance better our renewables portfolio and our customer portfolio. On the flip side, it will decrease our earnings of our flexible units. When evaluating, you need to keep both in mind. In terms of the status of our own battery storage project, we are progressing as planned. The COD of all three projects is expected in beginning of 2027. If everything goes well, we might see first power still this year. Our main goal is to launch them fully beginning of next year.
The following question: What is the weather-normalized annual production from currently operational onshore wind and solar capacities?
Yes. In terms of weather-normalized annual production, I would need to check and let us get back to you with our IR team.
Next question: What is the progress in fulfilling state auditor's recommendations regarding offshore wind park in Lithuania? Will the Group be able to fulfill them and develop a profitable wind park without state support? Why?
Based on recommendation following the study audit, we must to conduct an analysis of internal and external factors affecting the project, and to present it to stakeholders and make relevant decisions. Works are going according to the plan. We are now focusing on the analysis, after which we will have clarity on how we will proceed.
Next question. Ignitis has talked about selling part of business CHP since 2024, yet deal has been reached just yesterday. Why this took about two years? Were there are any other potential buyers? Why did you choose Quaero Capital Fund? What is your opinion they will provide in management of the CHP?
Okay. you know, why did we choose Quaero Capital? That's an easy one. They have provided the best conditions among all the potential buyers, and we agreed to do the transaction with them. In terms of us talking about selling part of CHP since 2024, that's natural because we had the requirement by European Commission to launch that sale, so we knew well in advance that we need to do this process. In terms of in terms of executing it now, so, you know, we have achieved a good result, a favorable outcome, and we are, you know, happy to do such transactions.
In terms of what Quaero Capital will provide in the management of CHP, we think as an experienced infrastructure investor, Quaero Capital will for sure have good ideas how to improve of the operational performance of the business further.
One more question: You highlight in the presentation the negative volume effect in green capacity segment from hydro assets. Could you elaborate a bit on that topic and what caused the lower volumes?
Yes. For hydro volumes, there's two parts of it. The first part is a very straightforward one because of worse hydro conditions, so less water in Nemunas River. We had a lower generation in our river flow hydro. This was, you know, if we look at the long long-term track record, this was a poor hydro year for us.
The second reason is in relation to our Kruonis facility, where this year we had to optimize our operations between providing balancing capacity services, which then don't result in generation, and the actual, let's say, arbitrage operations, where we try to benefit from the spread between high and low power prices in the market. The ratio this year shifted more towards providing balancing capacity service.
Next question: Power plant construction was mostly financed with debt. What portion of those loans still needs to be repaid?
Okay, usually we finance all of our power plants at around, you know, 60%-70%, with leverage, and it's usually a long-term facilities. Usually we have around 15-year loan facilities, which means that if you look at the individual assets and when you know when it has been built and when it has been financed, you can estimate for each individual asset, how much debt remains in there. It's, it's quite dependent on asset by asset.
Next question: If two Kruonis units are not used, are you planning to conserve them?
The statement is not 100% correct. Kruonis has currently four units, and mainly we are using one or two units, and in smaller time period, we have to use three units. As it was mentioned before, the situation when all four units are in operation is less than 1% of the time. This complex has a very strategic value for the entire Baltic energy system, ensuring balancing and ancillary services for entire region. Therefore, the high level of redundancy of its operations is very necessary to ensure stable as well as profitable operations for the group and for entire region.
Therefore, we don't plan to do the conservation of any current unit, and as you know, we are building the fifth unit, which will bring additional flexibility to the system, so by then we will have five units in operation. Of course, the situation that we will use all five units at once will be quite limited, but overall, it is bringing and will bring huge value to the country, to the region, and to the shareholders.
The last question: Can you elaborate on the expected flat EBITDA in green capacities in 2026, price versus volumes?
In terms of flat EBITDA in green capacities, we do expect lower power prices for 2026, and that is driven both by slightly lower market prices expected, but also by the expiry of some of the more expensive power purchase agreements. The price effect will be to the downside, while volume impact is expected to the upside, due to, as mentioned, the worse than typical hydro year in 2025, worse than typical wind year in 2025, and also some of the assets still haven't operated the full year, which we launched in 2025.
This concludes our earnings call. Should you have further questions, our investor relations team remains at your disposal. Thank you for your participation, and we look forward to engaging with you next quarter. Stay safe. This concludes today's conference call. Thank you for participating. You may now disconnect.