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EBRD loan supports E-Energija’s operations
Lithuanian energy group expands to Ukraine
The EBRD is increasing its support for E-Energija with a €15 million loan to the private Lithuanian energy company. The funds will be used to finance E-Energija’s expansion to Ukraine and to support energy efficiency investments in Lithuania and Latvia. The EBRD expects to become a shareholder in the company with a €5 million equity investment in the next several weeks.
E-Energija is well-established on its home market in Lithuania as a multi-utility company that provides energy services, including the provision of heat and hot water to both residential and industrial clients. The company is upgrading its supply systems with cleaner and more efficient technologies in medium and small sized cities. E-Energija also trades carbon credits, which is a developing market.
Earlier this year E-Energija won the tender to operate a district heating network in Artiomovsk, a city of 100,000 people (including some neighbouring districts) in east Ukraine where service levels are poor. The EBRD loan will finance investments to guarantee regular hot water supply and to optimise the city’s 36 boiler houses.
Thomas Maier, EBRD Business Group Director for Infrastructure, said that the Bank’s support for E-Energija will send a positive signal to the market, where access to finance is still difficult for the kind of investments the company is making. “With our financing we are also expressing our commitment to regional development”, he added.
To-date, the EBRD has provided over €450 million to finance district heating projects in its countries of operations and mobilised investments worth €1.3 billion in the sector with its partners. More than half was to private sector development in the sector.
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