1 ENERGY INDUSTRY OF LITHUANIA Rymantas Juozaitis Chairman of Lithuanian Member-Committee of WEC Vilnius October 5, 2005

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3 LITHUANIA Population – 3.44 million; Area – 65.3 thousand square km; In the Middle Ages - the largest kingdom in Eastern Europe (area – square km); Lithuania lost its independence in the end of the eighteenth century; Lithuania restored independence in 1918; The USSR occupied Lithuania in 1940; Lithuania once again restored independence in 1990; Lithuania became the member of the EU in 2004.

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5 MEMBERS OF LITHUANIAN MEMBER- COMMITTEE OF WORLD ENERGY COUNCIL Lithuanian Electricity Association; Lithuanian Gas Association; Lithuanian Nuclear Energy Association; Lithuanian District Heating Association; Association of Energy Consultants of Lithuania; Geonafta AB; Insurance Company “MARSH LIETUVA”; Empower AB.

6 SOME IMPORTANT DATES Lithuania restored the WEC membership. March, the Law on Energy was adopted by the Parliament Lithuania became the member of NATO and the EU.

7 SOME DATES OF ENERGY REFORMS IN LITHUANIA Joint stock companies were established in the energy sector of Lithuania The first step of reorganization of Lietuvos Energija AB. District heating utilities and CHPs were separated from Lietuvos Energija AB and transferred to municipalities Oil refinery Mažeikių Nafta AB was privatized Procedures of gas sector privatization were started Reorganization of Lietuvos Energija AB was completed West Distribution Company was privatized The second step of privatization of Lietuvos Dujos AB was completed.

8 CLOSURE OF IGNALINA NPP The closure of Unit I was scheduled in 2004, Unit II - in 2009; Ignalina NPP produces more than 75% of electricity output in Lithuania; Ignalina NPP can be substituted by Lithuanian PP, but this power plant has to be upgraded to meet environmental requirements.

9 CLOSURE OF IGNALINA NPP Unit I was shut down on December 31, 2004; The new Government’s Program states that Lithuania will remain a nuclear country in the future.

10 NEW INTERCONNECTIONS Poland – Lithuania; Estonia – Finland; Sweden – Lithuania.

11 POWER GRIDS IN BALTIC SEA REGION

12 Development of gas pipelines TEN-E priority projects “Amber” project Possible case of Yamal-Europe II

13 THANK YOU!