Vilnius CHP project gets green light from EC

Article published on Renewables Now

The European Commission (EC) has given its approval for a combined heat and power (CHP) project in Vilnius proposed by state-owned Lietuvos Energija.

According to a statement published on the website of Lithuania’s Ministry of Finance last week, EC’s technical assistance partnership Jaspers has confirmed that the project complies with European Union (EU) directives and will have social and economic benefits to the society. The proposed plant is expected to produce 87.6 MW of electricity and 227 MW of heat.

The total investment in the scheme is estimated at around EUR 350 million (USD 412m). About EUR 150 million in financing is expected to be provided by the EU, while up to EUR 190 million has been extended by the European Investment Bank (EIB), the Baltic News Service (BNS) and LETA news agency report. Lietuvos Energija will cover the remaining part of the financing costs.

“The expert conclusion proves once again the major strategic importance the Vilnius combined heat and power plant has to our state, as it will provide the most efficient solution of waste and high heating prices,” finance Minister Vilius Sapoka said.

The Vilnius CHP facility will consist of one waste incineration and two biofuel systems and is anticipated to help lower carbon dioxide (CO2) emissions by about 436,000 tonnes per year. The generated electricity will be enough to supply 230,000 households, while the plant’s heat output will meet 40% of Vilnius’ district heat demand, Lietuvos Energija calculates.