The embassy of Lithuania in Finland Ambassador A. Jievaltas Lithuanian Energy Policy

National Energy Strategy – the road towards Lithuanian energy independence

A responsible outlook to the future By 2020 sustainable energy will be oriented towards the following most relevant targets: 23% of the final energy consumption will be produced from renewable energy sources: –20% of electricity consumed mostly from biomass and wind. –60% of the energy consumed for central heating (from biomass) –10% of biofuel in the transport sector The efficiency of energy consumption will be increased by 1.5% per year Saving in central heating systems will amount to 30-40% CO 2 emissions will be reduced.

Implementation of the III EU energy package Reasonable energy prices for consumers. Strategic significance: Liberalisation of energy market; Access granted to alternative energy suppliers to join energy supply networks. The principles of III EU energy package are being implemented successfully in Lithuania. On 13 July 2011, H.E. D.Grybauskaitė signed new Natural Gas law and its implementation law.

Dependency on a single gas supplier Gas prices at the beginning of 2012: PL – €386 per 1000 m³ LT – €371 per 1000 m³ UA – €315 per 1000 m³ < 50 % % % Sources: BP Statistical Review of World Energy, June 2010 Europe’s energy portal, 2010

The structure of energy resources in Lithuania N.B. After Ignalina NPP shutdown, Lithuania became 80% dependent on energy imports from a single supplier.

Strategic Projects – guarantee of Lithuanian energy independe nce

Strategic projects: Natural gas, Renewables and energy efficiency Liquefied Natural Gas Terminal, Klaipeda (3 bn. m 3 / year) € 342 M Underground Natural Gas Storage Syderiai, Lithuania (0.5 bn. m 3 ) € 151 M Gas pipeline to Poland Amber pipeline (2.3 bn. m³/ year) € 485 M Total:€ 978 M New Renewable capacities for Electricity and Heat (to reach 23% target) € 1007 M Renovation of public buildings€ 3028 M Housing modernization programme€ M Total:€ M

Strategic projects: Electricity networks and Electricity generation New Nuclear Power Plant (1350 MW)€ 5035 M Poland –Lithuania electricity interconnection (1000 MW) € 238 M Additional network strengthening€ 470 M Sweden – Lithuania electricity interconnection (700 MW) € 704 M Reconstruction of internal electricity grid€ 363 M Total:€ 6810 M New CCGT (440 MW)€ 363 M New gas-fired co-generation power plants (total 250 MW) € 363 M Modernization of Kruonis HPSP (2 units)€ 251 M Total:€ 977 M Grand Total:€ M

Lithuanian experience in nuclear energy Ignalina NPP: Unit 1 shut down in 2004; Unit 2 shut down in 2009; Closure process will end in 2029; The general closure costs are appr. EUR 2,9 bn, i.e. too big for Lithuanian economy to hadle; The EU support for the period will reach EUR 350 mln, instead of needed 870 mln. Inter alia: In the EU accession treaty Lithuania pledged to shut down Ignalina NPP and has successfully done that. Lithuania expects that EU will maintain its commitment to provide adequate financial support needed to close Ignalina NPP.

Meet Visaginas Nuclear Power Plant Strategic significance: the new regional NPP is an assurance of stable energy security in Baltic region and the key to connection with European networks. Concession agreement in 2012; Co-operation with “Hitachi-GE Nuclear Energy“; Construction begins in 2013/2014; Unit 1 - opening in 2020; Project costs EUR 3-5 bn. N.B. Visaginas NPP is one of the most advanced NPP projects in Europe, strongly supported by the EC. It will use Advanced Boiling Water Reactor, or the 3 rd generation of improved security reactor technology.

Visaginas NPP project is not the only one in the region Kaliningrad Region Plans to build two VVER reactors, 1150 MW each; Unit 1 starts in 2017; Unit 2 starts in 2018/19; Construction supposed to be started in November 2011; Region’s energy demand reaches 800 MW; At the moment Kaliningrad region is only interconnected with Lithuania; In order to export energy excess, new lines will have to be built. Belarus Plans to build two VVER reactors, 1150 MW each; Unit 1 starts in 2017; Unit 2 starts in 2018; Construction at Astraviec site (50km from Vilnius) started in November 2011; Lithuania is concerned about the place of this project, security, financial capability to build and maintain NPP.

Strategic projects – term of Lithuanian energy security

Thank you for your attention.