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Project summary document

Project name:AB Lietuvos Elektrine
Country:Lithuania
Project number:35335
Business sector:Power and Energy
Public/Private:Public
Environmental category:A
Board date:
Status:Cancelled
Date PSD disclosed:
Date PSD updated:
27 May 2005
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AB Lietuvos Elektrine [Environmental Impact Assessment]

Project description
and objectives:

The Government of Lithuania has agreed, as part of its Accession Treaty, to shut down the first unit of the Ignalina Nuclear Power Plant (INPP) before 2005 and the second before 2010. Other than nuclear power, Lithuania currently relies almost exclusively on gas as a primary fuel for producing electricity. 

LPP has served to date as reserve capacity but is now viewed by the Government as a strategic asset to replace baseload power from INPP decommissioning. AB Lietuvos Elektrine will implement a major investment programme for environmental and technical upgrading between 2004 -2008 to ensure that the LPP meets environmental requirements and that it can operate flexibly within a liberalising electricity market.

Transition impact:

The proposed project will upgrade LPP to EU environmental standards at the same time as ensuring it is technologically ready to take over from Ignalina in 2009, thus supporting nuclear safety in Europe.

The project will also modernise unit controls systems to allow for greater flexibility than original design. This will allow LPP greater ability to meet flexible dispatch that is a mark of a more liberalised market where customer demands are greater and more variable. Spare parts and system support will also now be readily available.

The loan conditionality will support the implementation of a tariff regime aimed at securing full cost recovery for LPP in its current operations as a back-up power source and as Lithuania’s primary source of power after 2009.

The client:

AB Lietuvos Electrine. The state owned operator of LPP.

EBRD finance:

Loan for approximately €15 million to be co-financed with commercial loans and both international and national grant funds.

Total project cost:

€252 million.

Environmental impact:

The EBRD has classified the project A/1, requiring an Environmental Impact Assessment (“EIA”) and an environmental audit. An EIA in accordance with Lithuanian legislation was carried out by Lithuanian Energy Institute in 2003. Public consultation and participation was incorporated into the EIA process. A public meeting was organised on 18 September 2003. After examining the Report, the conclusions of relevant parties, evaluations of public proposals, the positive decision regarding possibilities to carry out the Project was made by Vilnius Regional Environmental Protection Department of the Ministry of Environment on the 10th of November, 2003. In the context of the EBRD’s consideration to participate in the project, the Lithuanian EIA was reviewed.  On the request of the EBRD an addendum to the EIA was prepared to address additional issues. Also a self-standing Executive Summary of the EIA and the addendum was prepared.

The amended EIA package was disclosed to public for review and comments for a 120-day period on 22 September 2004 at Lietuvos elektrine technical library, Elektrenai municipality office, EBRD Resident Office in Vilnius and EBRD's Business Information Centre in London. The EIA materials were also posted on AB Lietuvos elektrine website .

The investigations showed that in order to meet Lithuanian environmental laws (valid from 1st of January 2008) and the EC Directives for Large Combustion Plants operation, flue gas desulphurisation units will be installed to reduce sulphur emissions and electrostatic precipitators will be installed to reduce particulate emissions. The modernization of the control systems and upgrading of regenerative air pre-heaters are proposed to increase the boiler efficiency and reliability, fuel saving and environment protection. The proposed project will result in the considerable reduction of air pollution and will allow the Lithuanian Power Plant to comply with Lithuanian and EU requirements for the emissions from large combustion plants.

There is an Environmental Impact Assesment available for this project.

Technical
cooperation:

None.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

EBRD contact:

Anthony Marsh, Operation Leader: marsha@ebrd.com

Procurement or tendering
opportunities:

Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.
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