Lithuanian CHP Plant gets 150 Million-Euro Boost from EC

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--A new combined heat and power plant (CHP) in the city of Vilnius, Lithuania, has received almost half the money it needs to get started from the European Commission (EC).

The Commission announced that it has approved 150 million euro ($169 million) in support of the project, which is being developed by state-owned Lietuvos Energija. The EC concluded that the project "promotes energy efficiency" and is expected to generate energy savings of around 40%. Plant construction will begin next year with commissioning scheduled for mid-2020.

The company already secured a loan of 190 million euro ($214 million) from the European Investment Bank (EIB) earlier this summer for the project, which is expected to cost more than 380 million euro ($428 million) to build, and will supply enough heat and power for approximately 230,000 households. The developer said that the project could not have moved forward without the aid.

European Commissioner for Competition Margrethe Vestager said, "The Lithuanian project to build a combined heat and power plant in Vilnius is a good example of the Juncker Investment Plan mobilising investment. It is in line with our state aid rules and it benefits Lithuanian citizens - and the environment."

The plant will consist of two CHP units, one fuelled by non-recyclable municipal waste and the other by biomass. The municipal waste incineration unit will be able to produce 18 megawatts (MW) of electrical power and 53 MW of thermal power. The biomass unit will have a capacity of 70 MW of electrical power and 174 MW of thermal power.

"This decision is long awaited and very important for Lithuania and its people," said director of the cogeneration projects division at Lietuvos Energija. "Without public support Vilnius cogeneration power plant projects would not be possible. We believe that the power plant will not only effectively solve the accumulated waste issue but also the issue of high heat prices."

Lithuania, along with its Baltic neighbours Estonia and Latvia, are working with Europe to reduce their almost total reliance on Russian gas and electricity imports. Last year, Industrial Info reported that two new power lines, the LitPol and NordBalt interconnectors, were inaugurated. With a capacity of 1,200 MW, they connected to the countries to the European electricity system. For additional information, see December 21, 2015, article--Baltic States Open Two Power Lines to European Grid.

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