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Investment project, worth one billion litas, in the second largest city of Lithuania is implemented by the company Kauno elektrinė, managed by Kaunas Heat and Power Plant (KHPP). This appears to be the biggest investment project in the city.

 

The power plant is constructed at the expense of investors only. In pursuance of project implementation, Western European pension funds are attracted into this, which ensure financing and transparency of mobilisation of funds. Western financial institutions agree to contribute even during the economic crisis. The project will be credited by the Western commercial banks. Credits are insured by the state German company “Euler Hermes Kreditversicherungs-AG.

 

The project for the construction of the power plant is gaining momentum: two weeks ago after the call for tenders the consultant and technical supervisor was selected. The winner came to be the Finnish company “Poyry Energy”. Consultant and technical supervisor will take part in organising an international tender for the general contractor of the new Kaunas Power Plant and supervising the construction process. Following the evaluation of the Register of Energy News (ENR), “Poyry” is considered to be the best world consulting and design company of combined heat and power plants.

 

International contract tender is to be announced in February of 2010. In October it is expected to sign the power plant construction contract. Furthermore, a detailed feasibility study for the selection of conception of the technical design was conducted, environmental impact assessment report was prepared and approved, the permit for the development of power plant capacity was obtained from the Ministry of Economy, the study of the cable power connection selection was conducted, which is meant for energy connection with the national distribution network, as well as project financing was ensured and guarantees were obtained.

 

“The current power plant generates up to 95 % of overall heat demand to the integrated heating network of Kaunas city, whereas the power plant equipment is already 34 years old. Actually, the two Russian turbines, which generate the energy and heat, demonstrate quite satisfactory performance with reference to their working life. Nevertheless, taking into account technical specifications, the given turbines are hardly efficient, thus, we were obliged to search for a more efficient solution”, said Rimandas Stonys, the Head of Kauno elektrinė and Member of KHPP Board, talking about the development of power plant.

 

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 280-350 megawatts.

 

Production of one unit of electric power at the current power plant generates more than 2 units of heat power. 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 the generation of one unit of heat power.

 

In the beginning of 2013 after the construction of the new power plant, which will produce both heat and electricity, the heat generation prices in Kaunas will be at the lowest level throughout the country. This will be predetermined by the modern heat generation technology. It is estimated that energy production costs would demonstrate a decline by more than 20 %.

 

Energy specialists state that the construction of a new combined heat and power plant will be important not to Kaunas residents only, but to the people of entire Lithuania.

 

Energy sector expert Rimantas Zabarauskas explained that Kaunas residents would obtain benefit from the city power plant generating heat and electricity at the same time. Vilnius and Kaunas have modern and high power combined heat and power plants. Cogeneration technology allows generating both heat and electric power and, once sold, permits cheapening heating to consumers.

 

“Mere heat production in boilers does not have such an advantage. For instance, Šiaulių energija produces heat from natural gas only and, actually, has no combined heat and power facilities. Heat price in Šiauliai is higher than that in Kaunas and Vilnius”, stated Mr Zabarauskas.

 

“Combined heat and power plants are beneficial when it is necessary to consider efficient use of fuel for the production of electricity and heat. Such power plants in Lithuania allow paying less for heating to Vilnius and Kaunas residents”, enlisted advantages of power plants the Associate Professor at Kaunas University of Technology Anzelmas Bačauskas.

 

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”, explained academician Mr Vilemas.

 

 

One of the ways of 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”, said Antanas Pranculis, the Director General of KHPP.

 

 

Kaunas Power Plant will ensure the continuity of currently implemented social responsibility projects of Kaunas Heat and Power Plant. They already have deep traditions. KHPP is an active member of the city community. Company regularly supports cultural events, guarantees assistance to educational and health institutions, as well as the sports clubs of various branches.

 

KHPP, together with Kauno elektrinė, announced the competition “Most Advanced Class” and, thus, spread the idea of progress among the city schoolchildren. Kaunas City Municipality became the patron of this competition. Competition was meant for the comprehensive schools of Kaunas.

 

“Our activity is based on the most advanced and modern ideas and constant search of innovative solutions. We have decided to promote the idea of progress also in the schools of Kaunas; therefore, we announced a competition to encourage the schoolchildren to pursue higher study results”, stated Mr Pranculis, the Head of KHPP.

 

The winner of the competition was the class that had demonstrated the highest improvement of its study results over the current trimester/semester. Competition “Most Advanced Class” attracted almost a hundred of classes. The winning class won a trip to Stockholm, to the Nobel Museum that symbolises progress.

 

Competition received noteworthy feedback, it strengthened team work of classes and inspired the schoolchildren with desire of achieving better study results; therefore, second competition “Most Advanced Class” will be announced any moment now.

 

December 2009: consultant and technical supervisor selection (Finnish company “Poyry Energy Oy”).

February 2010: beginning of the international tender for power plant construction.

June 2010: submission of tenders for power plant construction.

October 2010: signing the power plant construction contract.

November 2010 – April 2013: power plant designing, construction and coordination works. From May 2013: operation of power plant.

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