€71 million loan to build a new power plant in Lithuania
The EBRD is helping to improve the security of energy supply in Lithuania and in the Baltics with a €71 million loan to AB Lietuvos Elektrine for the construction of a new combined cycle gas turbine (CCGT) plant.
The project will help Lithuania to make up for lost power generation capacity following the closure of the Ignalina Nuclear Power Plant (INPP), which accounted for over 70 per cent of the country’s total electricity output. INPP also exported electricity to Latvia and Estonia.
AB Lietuvos Elektrine, majority-owned by the Lithuanian state, is the operator of the 1,800 MW thermal Lithuanian Power Plant (LPP), which is located 50 km west of the capital Vilnius. Built in between 1962 and 1972, the LPP has eight generation units, currently fired with natural gas, heavy fuel and oil emulsion.
The EBRD loan will finance the construction of a new state-of-the-art CCGT unit at LPP, with a capacity of 450 MW. Upon completion in 2012, the new facility will replace two of the LPP’s outdated generation units, with a combined capacity of 300 MW.
While increasing LPP’s total production capacity by 150 MW, the new project will reduce Lithuania’s dependence on electricity imports. In addition the construction of the new generation facility will improve significantly LPP’s efficiency, enabling it to slash its CO2 and NOx emissions significantly.
“Increasing the generation capacity of LPP is a key priority for Lithuania and the EBRD is pleased to support AB Lietuvos Elektrine in the implementation of this strategic project. The construction of the new modern power plant will alleviate the impact of lost capacity in Lithuania and will support the creation of a secure and reliable power system in the region,” said Nandita Parshad, EBRD Director for Power and Energy.
“We would like to thank the EBRD for helping to bolster the power generation in Lithuania. The Bank’s support also demonstrates that AB Lietuvos Elektrine is creating a competitive and an efficient modern power plant for Lithuania and for the Baltics”, added Rolandas Jankauskas, Chief Financial Officer of AB Lietuvos Elektrine.
With total cost of €360 million, the project is co-financed by the Ignalina International Decommissioning Support Fund and a consortium of commercial banks.