Upgrade of heating and distribution network in Kaunas, Lithuania to increase use of renewable energy for heat generation, reducing emissions of greenhouse gases.
Investment in Lithuania’s No. 2 city to accelerate decoupling of domestic economy from fossil fuels and bolster regional cohesion.
EIB financing protected by guarantee from European Commission`s InvestEU plan.
Kauno Energija, the district utility company in the Lithuanian city of Kaunas, will upgrade and extend its district heating and hot water supply system with €35 million in support from the European Investment Bank (EIB). The EIB loan for the energy improvements in Kaunas, which is Lithuania’s second-biggest city and is located in the central part of the country, is backed by a guarantee from the European Commission’s InvestEU programme.
The project involves refurbishing and expanding the district pipeline network, adding heat storage tanks and incorporating renewable energy sources such as biomass for heat and hot water generation as well as solar power for electricity. It will improve energy consumption, increase the energy mix and reduce reliance on imported natural gas, accelerating the transformation of Lithuania and the European Union into a carbon-neutral economy.
Around 400,000 people living in Kaunas, Kaunas district and Jurbarkas stand to benefit from the project along with thousands of local small and medium-sized businesses.
“This project is very good news for Kaunas, for Lithuania and for the EU,” said EIB Vice-President Thomas Östros. “Living standards in Kaunas will improve with an efficient, reliable and more sustainable district heating network. Operations like this are also major steps towards an energy-independent EU.”
"The loan agreement with the EIB represents a vote of confidence and a consistent continuation of investments in the company's development,” said Tomas Garasimavicius, General Director of AB Kauno Energija. “With this second phase of investments, we will complete the implementation of major technological innovations and the city's strategic climate change management objectives. The projects implemented represent a major technological renewal of the company, ensuring reliable, sustainable and efficient heat production and supply."
Towards energy-independent EU
The EIB investment in Kaunas contributes to the independence of the EU energy sector and the Energy Union priorities, one of the key objectives of European Commission`s InvestEU plan. InvestEU guarantees allow the EIB to invest more in projects across Europe.
The project in Kaunas also advances Lithuania’s National Energy and Climate targets and the REPowerEU plan.
