Lietuvos Energija has secured a €190m loan from the European Investment Bank (EIB) to construct a new combined-heat-and-power (CHP) plant in Lithuania.
The CHP plant, which will come up in Vilnius, is likely to decrease municipal waste landfilling besides cutting down energy prices. It is also expected to bring down emission levels and enhance energy security in the country once it gets commissioned by 2018.
The Vilnius CHP project of the state-controlled energy company will feature a biomass-fired and an 88 MWe and 227 MWth waste-to-energy-fired plant.
EIB vice president Jan Vapaavuori said: “Lithuania has a growing economy and an increased need for cleaner environment and efficient use of energy resources. I am glad that through the “Investment plan for Europe” the EIB can support Lietuvos Energija and the Lithuanian people in financing a key stepping stone to an improved security of supply, as well as more cleanly generated energy.”
An estimated power of 413GWh/y generated from the CHP plant will be supplied to the national grid while the estimated heat of 1180GWg/y emanated from it will be supplied to Vilnius’ district heating system.
Lietuvos Energija CEO Dr. Dalius Misiunas said: “EIB loan agreement is a crucial milestone in Vilnius CHP project. It will ensure that construction of the plant is going to be financed in accordance with the best terms.
“The fact that “Lietuvos Energija” is the first project to receive funding guaranteed under the Juncker Commission’s Investment Plan for Europe of shows the strategic importance of Vilnius CHP plant”.
About 750 people will get employment opportunity during the construction of the plant while 75 permanent jobs will be created to run the facilities.
Image: European support for cheaper and cleaner heat and power in Lithuania. Photo: courtesy of European Investment Bank.