Energy, Good for Business, Legislation, Lithuania

Vilnius TEC-3.

According to Vilnius Mayor Arturas Zuokas, it is a very important decision for the heat sector. Its primary objective is to minimize heat prices as much as possible ant to import as little gas as possible by switching to other energy sources, in this case to biofuel.

The working group on Vilnius Power Plant 3 modernization was formed in September 2013. It stated in the findings that the most effective solution would be to build a new 540 megawatt boiler (340 MW for heat, 180 MW for electricity). This would allow to reduce heat price to 18.4 Lithuanian cents per kilowatt hour and would enable the city to save LTL 150 million (EUR 43.4 million) per year.

On Wednesday the project will be submitted to Vilnius City Council. If it gains approval, the investment project shall be drawn up. The project is estimated to be worth more than LTL 700 million (EUR 203 million). The project is hoped to be supported and funded by at least 60 percent by the European Union. A loan for the remaining amount would probably be taken.

According to Zuokas, after the implementation of the project, Vilnius would use only 30 percent of gas. The mayor hopes that the construction will break ground in 2013, the reconstruction would last for approximately two years. According to Zuokas, identical project should be implemented in Kaunas.

Vilnius Deputy Mayor Jonas Pinskus says that the ability to produce as much as 70 percent of heat from renewable energy resources means that it would be possible to use renewable energy from May to October.

According to Arturas Keserauskas, Head of Vilniaus Silumos Tinklai (Vilnius Heat Network), such project has been successfully implemented in Poland. The reconstruction of Vilnius Power Plant 3 would also result in cheaper electricity which would cost slightly more than 13 Lithuanian cents. However, at first the City Council has to approve the project and the EU has to provide support.