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Worth a billionth litas, in the beginning of 2013 investment will turn into a new combined heat and power plant, which would generate electric energy to satisfy the needs of Lithuania and heat to the consumers of Kaunas.

Modern power plant will allow for the reduction of Lithuania’s energy dependence on the Russian energy, whereas the heat, produced in Kaunas, will turn to be cheapest throughout Lithuania.

The construction project of the power plant in the capacity of approximately 350 megawatts is carried out by the company KAUNO ELEKTRINĖ. It is held by Kaunas Heat and Power Plant (KHPP), which belongs to the Russian concern GAZPROM.

Forty nine percent of shares of KAUNO ELEKTRINĖ will belong to the investors from the European Union and Lithuania.

 

 

Shortly, it will be announced who is the winner of the tender for engineering technical supervisor for the construction of the power plant. Two Western companies take part in the tender.

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.

The current power plant, which produces heat to Kaunas, distributes up to 95 % of all the heat, whereas the equipment of the power plant is 34 years old already.

Two Russian turbines, which produce electric energy and heat, demonstrate quite good performance considering its age.

However, taking into account technical characteristics, the given turbines are hardly efficient or reliable, thus, we are obliged to search for a more efficient solution”, said Rimandas Stonys, the Head of KAUNO ELEKTRINĖ.

Under the order of KHPP, several 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.

 

 

“We welcome every more advanced investment; however, it is important that the city would not rest in the hands of monopolists”, said the conservative Andrius Kupčinskas, the Mayor of Kaunas, regarding the construction project of Kaunas Power Plant.

It is expected that the project of such extent will draw greater focus both on the whole Lithuania’s energy sector and the Government because this project is of great significance to the whole energy sector of Lithuania and, consequently, should not be left to the city municipality.

Urban manager deliberated that Kaunas would suffice a power plant in the capacity of 100 megawatts, but the current owners of KHPP deal with geopolitical energy problems to be faced after the shutdown of Ignalina Nuclear Power Plant.

 

 

The president Algirdas Brazauskas, who has already completed his mandate, believes that the construction project of a combined heat and power plant in Kaunas would contribute to the reinforcement of energy safety in 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.

He is convinced that there should be no reasons for Lithuania, the EU Member State, to fear of Russian investment: “Should we feel fear of GAZPROM and do nothing we would remain paupers in Europe. We must be involved in the discussions with GAZPROM and enter into any contract favourable to us. We may negotiate after all.

 

Recently, at the layers of energy specialists there are discussions that Kaunas is showing better development of its energy capacities as compared to Vilnius, which is also perceived by the politicians of the country.

According to Artūras Zuokas, the former Mayor of Vilnius and the present Member of the Seimas, 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, every litas invested in Lithuania is of vital importance.

“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”, was not willing to connive Mr Zuokas.

Academician Jurgis Vilemas, the Chairman of the Council of Lithuanian Energy Institute, has referred in the mass media that Vilnius heat producers have no plans to renovate the current heat power plant, thus, the implemented project of the power plant in Kaunas will become the most up-to-date and efficient in Lithuania. “This will be likely to give to Kaunas City quite a number of advantages. Though many may be displeased, it shall be stated that Kaunas will gain even political supremacy over the other largest cities”, spoke Mr Vilemas.

As Mr Vilemas states, Kaunas has seen the lowest heat production prices in Lithuania over the last few years, thus, after the construction of a new power plant, it may be further expected that the heat price will remain lower than the one in the other large cities of Lithuania.

Mr Kupčinskas, the Mayor of Kaunas, would be willing that the constructors of the power plant would undertake a contractual obligation to the Council of the City to refrain from putting prices up.
Academician Mr Vilemas presumes that the current owners of KHPP express their concern not only with the market of Kaunas City. They expect the major profit to be gained from the sales in electric power after the shutdown of Ignalina Nuclear Power Plant.

Thus, the new powerful power plant in Kaunas may bring benefit to the residents 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.

Ukrainian, Estonian and Russian enterprises will offer electric energy to Lithuania, but GAZPROM will be able to offer to its company in Kaunas cheaper gas and, consequently, contribute to lower electricity prices in Lithuania”, assured Mr Vilemas.

Kaunas energy producers, who are executing an enormous investment project, are also active members of the community.

Presently, KHPP is carrying out a social project “Most Advanced Class” at all the comprehensive schools of Kaunas.

The concept of the project, which includes the participation of the 5th to 11th graders, is to promote the schoolchildren of the city to improve their study results as better as possible.

The class to demonstrate the highest improvement of its study results over the trimester/semester will be awarded a trip to the Nobel Museum in Stockholm.

“Generation of heat and electric power is the team work. We are convinced that team work would lead to the achievement of highest results and greatest victories.

This project will also prove this, affirmed Mr Pranculis, the Head of KHPP. Victory of the competition “Most Advanced Class” is most possibly likely to go to the class that will work jointly; instead of putting efforts in individual work it will also help its classmates. The winning will be predetermined by the overall result of the whole class”.

 

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