Energy, Good for Business, Investments, Lithuania

"It is a new power plant that marks a new page in the history of energy and Vilnius. It is the phase where the actual work begins, Darius Maikstenas, CEO of Lietuvos Energija, said at the symbolic capsule burial ceremony.

The 88 megawatt (M W) electricity and 227 MW heating capacity power plant project is implemented by Lietuvos Energija, however, up to 5% of the power plant's shares will be offered to the municipality-owned Vilniaus Silumos Tinklai (Vilnius Heating Grid) in the future.

According to calculations, the power plant will allow Vilnius residents to pay 10 million euros less for waste management every year, furthermore, will save up to 13 million euros on heating on an annual basis, while the CPH heating would be 19-20 euros per megawatt-hour (MWh) or 35% lower than the 2016 price (around EUR 30 per MWh).

A 190-million-euro loan for the construction has been earmarked by the European Investment Bank (EIB), with another 153 million euros provided by the European Commission.

The facility's waste burning and general technological equipment will be built by a consortium of Germany's Steinmuller Babcock Environment and the Polish construction group Budimex for 178.29 million euros. Biofuel burning equipment will be installed by Polish energy object builder Rafako for 149.65 million euros.

Lietuvos Energija and Finnish-capital Fortum Heat are currently already building a 150-million-euro CHP plant in Lithuania's second city Kaunas.