Fortum Heat, which plans to build a similar power plant in Kaunas and is already building one in Klaipėda, would be the main project partner.
“It is a new initiative, which has nothing to do with our and Fortum’s projects in Kaunas. We will try to find out whether there are any possibilities to build such a power plant in Vilnius. It results on mutual – ours’ and Fortum’s – understanding that such a project is necessary in Vilnius, too,” Lietuvos Energija CEO, Dalius Misiūnas, told BNS.
The company’s strategic goal was to enter the heat energy market, first of all in Vilnius and Kaunas, he said. “These cities are interesting for us. It is a national level priority – the heat energy market is stagnant in Vilnius and it could be the first step towards its revival.”
Lietuvos Energija says that it will take its final decision on investments after the completion of initial works, which will be carried out by Fortum Heat Lietuva.
“Fortum is the leader in the first stage – it will have to decide what could be the price of energy, the benefits for consumers, the competitiveness and all other aspects, including environmental protection. The first stage will last for approximately 18 months and the power plant is planned to be built by the end of 2016,” Misiūnas said.
The distribution of shares and investments would be known after the completion of preparatory works, he added.
Fortum Heat Lietuva will look for a suitable land parcel, carry out feasibility studies and implement the environmental impact assessment program, carry out a study on the supply of fuel to the facility and a pre-project study, and prepare the project development plan.
The new cogeneration power plant with a capacity of some 50 MW for electricity and some 110 MW for heat would fire biofuel, Lietuvos Energija reported through the NASDAQ OMX Vilnius Stock Exchange.
Earlier this year, Fortum Heat Lietuva launched preparatory works for a similar project in the free economic zone (FEZ) of Kaunas. Vitalijus Zuta, Fortum Heat Lietuva CEO, earlier told BNS that the company planned to build an approximately 200 million euros worth biofuel-fired power plant with a capacity of up to 50 MW for electricity and of 150 MW for heat in Lithuania’s second-largest city. The company expected to prepare the plan of the facility within six months. The power plant could launch operations in 2016.
Lietuvos Energija and Kauno Energija (Kaunas Energy), the district heat supplier controlled by the local authority of Kaunas, will also implement a joint biofuel power plant project in Kaunas.
In 2011 Fortum Heat Lietuva launched the construction of a new combined heat and power plant in Klaipėda in a project worth some 140 million euros. The power plant with a capacity of 20 MW for electricity and of 50 MW for heat is expected to be fully operational in the first quarter of 2013.
All power plants will fire biofuel and non-hazardous household and industrial waste.
Vilniaus Energija (Vilnius Energy), the district heat supplier controlled by France’s Dalkia, in January announced that it intended to build an approximately 500 million litas worth biofuel power plant with a capacity of 300 MW in Vilnius.
However, the government and the president criticize Dalkia’s activities in Vilnius. Nerijus Udrėnas, president’s chief adviser on economic and social policy, once said that the power plant planned to be built by Dalkia would not ensure competition and lower prices of heat. The heating sector in Vilnius lacked transparency and competition, he said adding that Vilniaus Energija did not let other heat suppliers enter the market.
President Dalia Grybauskaitė once said that the process of building biofuel-fired boiler houses was too slow in Lithuania and stated that she, same as the government, would not tolerate monopolies in the heating sector.
