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GAZPROM to Invest One Billion Litas to the New Power Plant
2008-05-02
Russian gas giant GAZPROM, running Kaunas Heat and Power Plant (KHPP), approved of investment of around 1 billion LTL into the construction of the new combined heat and power plant of 350 MW capacity in Kaunas.
“It will be one of the most modern and economical thermal power stations in the Eastern Europe. Once built, we would be able to ensure reliable electricity distribution for the national network after the shutdown of Ignalina Nuclear Power Plant, whereas our produced heat to Kaunas residents will remain cheap”, said KHPP Manager Antanas Pranculis.
The total electrical capacity of the combined cycle power plant is planned to reach 350 MW and that of the heat almost 300 megawatts. Power plant will be equipped with gas and steam turbines, where natural gas would be used.
“This year already we plan to start an open invitation to tender of the contractor for the construction of power plant and works would commence next year. We would like the new power plant to come into operation before the beginning of the heating season of 2011-2012”, said the Director General of KHPP.
Project capacity of the current power plant varies from around 1500 megawatts of heat to 170 megawatts of electric power. Once the development project is accomplished, the output of power generation would double leading to an increase in the efficiency of the power plant from 75.5 % to 84-88 %.
The 15-year lasting agreement by KHPP with KAUNO ENERGIJA ensured for the latter a stable heat price since 2003 up to 2008. From May 2008, however, the heat price must be calculated according to the formula depending on the price of natural gas and global petroleum products.
As Mr Pranculis states, the fuel prices have rapidly rocketed over the recent five years, but the power plant cannot face difficulties, therefore, the price of heat that is sold is planned to be forced up roughly twice, namely from 6.58 cents to 12-13 cents per kilowatt-hour.
© Lietuvos rytas/Laikinoji sostinė/BNS