Construction, Energy, Energy Market, Financial Services, Lithuania

Nerijus Rasburskis, director of the Cogeneration Projects Division at Lietuvos Energija, believes the Cabinet of ministers should decide in the positive after the parliament's Energy Commission asked the government to take a new look at the Kaunas project.

"We expect a positive decision shortly, because we are convinced we have completed our tasks in light of the guidelines of circular economy back in 2015 (…), and we have made considerable progress with the projects," Rasburskis told journalists in the port city of Klaipeda on Friday.

He acknowledged that an opposite decision would lead to financial losses for Lietuvos Energija, putting the project two years behind schedule.

On Thursday, the parliament's Energy Commission expressed doubts on the need to build the Kaunas Cogeneration Power Plant that has been recognized a project of importance to the state. Construction of the plant is planned by Lietuvos Energija together with Finnish-capital Fortum Heat Lietuva. The commission decided to ask for the government's assessment of the need of the power plant in Kaunas, as it would create major competition for independent heating suppliers, which Kaunas has around 10.

Tenders for the contractor and acquisition of equipment are currently in progress. In Rasburskis' words, 30 percent of the project value will be financed in the form of shareholder contributions and the remaining 70 percent will come from a bank loan. The cogeneration utility should be operational in 2019-2020.