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September 19, 2016

EC approves state aid grant for Vilnius CHP plant in Lithuania

The European Commission (EC) has authorised financial support for construction of a combined heat and power (CHP) plant in Vilnius, Lithuania.

By Umesh Ellichipuram

The European Commission (EC) has authorised financial support for construction of a combined heat and power (CHP) plant in Vilnius, Lithuania.

Lithuania had requested the commission to grant €150m in state aid for the new plant, which will also be financed by European Investment Bank (EIB) through the European Fund for Strategic Investments (EFSI).

The EC's commissioner for competition Margrethe Vestager said: “The Lithuanian project to build a CHP plant in Vilnius is a good example of the Juncker Investment Plan mobilising investment.

"The Lithuanian project to build a CHP plant in Vilnius is a good example of the Juncker Investment Plan mobilising investment."

“It is in line with our state aid rules and it benefits Lithuanian citizens and the environment.”

The new plant will generate electricity for the Lithuanian power grid, as well as heat for the district heating system of Vilnius.

It consists of two units, one fuelled by non-recyclable municipal waste and the other by biomass. The municipal waste incineration unit has the capacity to produce 18MW of electric power and 53MW of thermal, while the biomass unit can generate 70MW of electric and 174MW of thermal.

The EC has noted that the project promotes energy efficiency with expected energy savings of around 40%.

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