Public Private partnership in the Baltics and Europe
Alternative means of financing Energy and Infrastructure projects
Perspective for the EU Structural Assistance
to the Energy Projects in Lithuania for the
period 2007 - 2013
Marijus Franckevičius
Director
Energy Agency, Lithuania
23 November 2006, Reval Hotel Lietuva, Vilnius
ENERGY AGENCY
LITHUANIA
Selected Key Messages from Operational Programs (1)
•
The Lithuanian national energy supply networks and systems substantially meet
current customers needs, however, majority of equipment are outdated in all
respects and do not meet modern standards of security and reliability of supply
•
Natural gas is supplied from a single source (Russia), therefore, projects aimed at
increasing reliability and safety of energy supply must be implemented
•
Energy supply networks and systems must be modernised by applying state-ofthe-art technological solutions aimed at increasing the security and reliability of
energy supply and by improving opportunities for fuel diversification and power
generation at co-generation plants
•
Non-decreasing social, economic, and territorial inequalities between different
Lithuanian regions as well as between the cities and rural areas, determine
unequal possibilities to support, properly maintain, and renew the available
housing, thus, physical degradation of residential environment and buildings as
well as lack of social housing is observed in separate areas of the country
(especially in problematic territories)
ENERGY AGENCY
LITHUANIA
Selected Key Messages from Operational Programs (2)
•
The system for collection of recyclable and dangerous waste as well as
management of biodegradable waste is underdeveloped
•
Major energy plants using traditional energy sources have no treatment
equipment for air emissions and, therefore, fail to meet EU requirements
•
Energy consumption is inefficient in Lithuania because of poor energy
characteristics of most public buildings
•
Low level of performance of boiler houses and of electricity generated by CHP
plants
•
Underused energy potential of renewable energy resources
ENERGY AGENCY
LITHUANIA
Provisional allocation of resources to Energy Related Projects
Fund
OP
Economic
Growth (2)
ERDF
Promotion
of Cohesion
(3)
Cohesion
Priority
Action group
Budget,
MLt
Basic Economic
Infrastructure (4)
Energy Supply Networks (1)
489.350
Local and urban
development, conservation
of cultural heritage and
nature, adaptation for
tourism development (1)
Housing development in
identified problem areas (1)
200.000
Water supply and waste
water treatment systems (1)
Modern waste management
Environment and sustainable systems (2)
development (3)
Improvement of air quality (3)
Increase of energy efficiency
and use of RES (4)
ENERGY AGENCY
LITHUANIA
2,697.000
996.610
Energy supply networks
(Possible projects)
• Electricity (150 million Lt):
– Construction of new electricity transmission lines
– Construction / modernization of electricity distribution network
– Construction / modernization of transformer sub-stations
• Natural gas (90 million Lt):
– Construction of new natural gas transmission pipelines
– Construction of new natural gas distribution network,
connection of new consumers
• District heating (249 million Lt):
– Replacement of outdated DH pipes with new modern ones
Total ERDF allocation – 489 million Lt (142 MEuro)
ENERGY AGENCY
LITHUANIA
Energy supply networks - electricity
(Project example)
Length, km.
82
Cost, mln. Lt
92
Construction
duration, years
4
ENERGY AGENCY
LITHUANIA
Energy supply networks – natural gas
(Project example)
Length, km.
160
Cost (incl.
distribution), mln. Lt
242
Construction
duration, years
ENERGY AGENCY
LITHUANIA
3
Energy supply networks – District Heating
(Project example)
Renovated pipes
(agreed 100 mm
diameter), km.
1800
Duration, m.
till 2015
Cost, mln. Lt
400
Fuel saved, ktoe
30
Reduced CO2
emission, kt.
70,4
ENERGY AGENCY
LITHUANIA
Increase of energy generation and consumption efficiency
and use of renewable energy resources
(Possible projects)
• Increase efficiency of energy production (94 million Lt):
– Modernization of CHP plants
– Modernization of boilers operating in DH systems
– Construction of high-efficiency CHP plants
• Utilization of RES for energy production (111 million Lt):
– Fuel conversion to RES at boiler houses or CHP plants
– Construction of new boilers or CHP plants fueled by RES
• Renovation of public buildings (792 million Lt):
– Reconstruction / upgrading of building envelope and energy
systems, reducing energy consumption
Total Cohesion Fund allocation – 997 million Lt (289 MEuro)
ENERGY AGENCY
LITHUANIA
FUELS USED FOR DH 1997 - 2005
90,0
83,6
82,3
80,1
80,0
81,7
75,5
72,0
70,0
68,5
59,1
60,0
%
52,5
50,0
44,1
38,1
40,0
30,0
27,3
22,7
18,7
17,2
20,0
10,0
1,2 3,0
2,0 1,5
2,0 0,8
2,0
0,6
4,0
1,3
5,0
0,8
9,7
7,2
5,6
10,0
0,8
4,2
12,0
2,1
0,8
0,0
1997
1998
Natural Gas
1999
2000
Fuel oil
2001
2002
Wood
2003
2004
2005
Other fuel
It is foreseen that production of heat using local, renewable and waste resources would
make 17% in general heat balance in 2010 and 23% - in 2020
ENERGY AGENCY
LITHUANIA
INSTALLED WOOD PROJECTS IN LITHUANIA
(~400 MW)
Possible increase of
RES based generating
capacities due to
Structural Funds
support ~ 200 MW
Installed capacity 0.2 – 1 MW
Installed capacity 1 - 10 MW
Installed capacity more than 10 MW
ENERGY AGENCY
LITHUANIA
http://www.avei.lt
Energy saving possibilities in public buildings
(Source – National Energy Efficiency Program)
Type of buildings
Area,
mill. m2
Investments,
mill. Lt
Maximal Optimal
Expected savings,
MWh/year
Maximal
Optimal
Buildings of administrative
mission
7.9
1738
1264
1043
1010
Tertiary sector
5.9
885
590
620
531
Buildings of educational,
cultural and sport mission
8.7
1305
785
653
509
Healthcare sector
2.5
425
300
213
182
Religious and other special
mission
5.1
459
357
274
268
30.1
4812
3294
2803
2500
TOTAL
ENERGY AGENCY
LITHUANIA