In Kaunas Energy Project of Russian and Western Investors
2009-05-28
The second largest Lithuanian city witnesses the implementation of the largest investment project in Lithuania, namely the construction of a new thermal power plant, worth one billion litas.
Modern Equipment to Change the Old One
A new thermal power plant will be constructed in Kaunas before the beginning of 2013. It shall become a reliable electric power distributor in Lithuania after the shutdown of Ignalina Nuclear Power Plant, whereas the heat prices to Kaunas residents shall remain at one of the lowest levels in Lithuania. Currently, Kaunas Heat and Power Plant (KHPP), controlled by the Russian Concern GAZPROM, produce about 95 % of heat to integrated network of Kaunas.
The project for the construction of a power plant in the capacity of almost 350 megawatts is implemented by the company KAUNO ELEKTRINĖ, managed by KHPP. 49 % of shares of KAUNO ELEKTRINĖ will belong to the investors of the European Union and Lithuania.
“Current KHPP equipment is 34 years old already. Actually, the two Russian turbines, which generate the energy and heat, demonstrate quite satisfactory performance. Nevertheless, taking into account technical specifications, the given turbines are hardly efficient, unreliable, thus, we are obliged to search for a more efficient solution”, said Rimandas Stonys, the Head of KAUNO ELEKTRINĖ, talking about the investment project in Kaunas.
Under the order of KHPP, several feasibility studies were carried out, the analysis of which was focused on determining which power plant would demonstrate the most efficient performance. It was resolved to construct a combined cycle combined heat and power plant in the capacity of 350 megawatts. Energy generation costs at the new power plant will be lower by more than 20 percent.
Shortly the results will be announced to disclose who will become the engineering technical supervisor. There are two Western companies who participate in the tender. In the meantime, environmental impact assessment has already been carried out, the permit for the development has been obtained from the Ministry of Economy and the study of the cable connection selection for the capacity has been conducted.
Benefit to the People of Entire Lithuania
Algirdas Brazauskas, who has already completed his mandate, believes that the construction project of a new combined heat and power plant in Kaunas would bring benefit both to the residents of Kaunas and the people of entire Lithuania.
“I am the supporter of such issue. Thermal power plant is a useful invention. It is necessary to build such power plants and the fact that they bring much benefit to consumers is proved by the example of Panevėžys. It is expedient to renew boiler rooms or construct combined heat and power plants in other cities too”, states Mr Brazauskas.
Academician Jurgis Vilemas, the Chairman of the Council of Lithuanian Energy Institute, is sure that the owners of KAUNO ELEKTRINĖ express their concern not only with Kaunas City. They expect the major profit to be gained from the sales in electric power after the shutdown of Ignalina Nuclear Power Plant. A new powerful power plant in Kaunas would bring benefit to the inhabitants of the whole country.
“Higher competition among the electric energy suppliers will appear after the closure of Ignalina Nuclear Power Plant. It may be expected that the new thermal power plant will demonstrate economically more efficient performance as compared to the new block under construction in Elektrėnai. Foreign enterprises will offer electric energy to Lithuania, but GAZPROM will be able to offer to its company in Kaunas cheaper fuel and, consequently, contribute to lower electricity prices in Lithuania”, explained Mr Vilemas.
Kaunas Power Engineers Outbraved Those from Vilnius
The present Member of the Seimas Artūras Zuokas, the former Mayor of Vilnius City, is sure that the government of Kaunas City and that of the State should strive for successful implementation and commencement of the project at an early date. Presently, during economic recession of today every investment in Lithuania is vital and welcomed.
“Kaunas demonstrates higher need of renovation of the heat economy than Vilnius does as facilities in Kaunas have outlived their usefulness. Major problems in Kaunas relate not with the production but distribution of heat, thus, the city municipality should assume its responsibility as regards the quality of heat distribution”, firmly expressed his position Mr Zuokas.
Government of Kaunas City is also aware of the benefit of investment of such extent, but fears the possible monopoly.
“We welcome every more advanced investment; however, it is important that the city would not rest in the hands of monopolists”, said the conservative and Christian democrat Andrius Kupčinskas, the Mayor of the City.
According to him, the project of the thermal power plant has already been presented at the municipality of the city. It is expected that the project of such scale will receive more attention both from the newly established Ministry of Energy and the Government, because this project deals with all the energy sector-related issues in Lithuania and, consequently, may not be left to the municipality of the city only.
Technologies without Pollution Charge
It is planned that production of one unit of electric power at the new power plant would generate one unit or even less of heat power, which would allow reducing the regular part of costs attributed to heat generation.
One of the ways for reducing heat production costs, similarly as the residents’ expenses on heating, is minimisation of pollution as a result of implementing the European Union (EU) policy. The new power plant is planned to be equipped with a modern energy production technology in compliance with the strict EU environmental requirements.
Air emission controls are to be performed by an automated continuous monitoring system. Water preparation equipment will be used that require the quantity of chemical means to be several times lower as compared to the technologies currently employed in Lithuania. It is planned to equip efficient cooling systems, whereas low nitrogen oxide burners will be used in gas turbines and boilers.
“By use of the most advanced accessible technologies the minimization of air pollution and noise will be ensured. Our work is based on the principle: Clean Environment for Future Generations”, affirmed Mr Pranculis, the Director General of KHPP.
© Litovskij Kurier
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