1. ) European Economic and Social Committee Sustainable Development Observatory U AB Vilniaus Energija, Biomass unit in Vilnius CHP-2 Raimondas Valentinas STIGA Projects performance director Impact Study of the EU Renewable Energy Directive Study Visit Lithuania: Vilnius, 15 May 2014 29/04/2015

2. ) Vilniaus energija Klausiate - atsakome 29/04/2015Vilniaus energija

3. 3 The beginning Established in 1998. The first contract was signed in October of 1999 (700 thousand EUR). After that fast increase. Heat production and supply. Heat: – 65 299 flats – 2.016 administrative, commercial, industrial objects; – 58 381 bills per month. Established in January of 2002. Activity began in April of 2002. Company reorganization and optimization. Heat: – 200 000 flats – 7833 administrative, commercial, industrial objects; – 183 000 bills per month. 29/04/2015

4. 4 Dalkia in Lithuania Sargėnai (Kaunas) PalangaTelšiaiBiržaiKelmė Kazlų Rūda Vilkaviškis Marijampolė Druskininkai Alytus Vilnius Litesko 1042 MW (heating) 17 MW (electricity) Vilniaus energija 2041,75 MW (heating) 388,8 MW (electricity) - 11 cities - About 41 percent of Lithuanian heat sector - More than 700 000 residents - Annual turnover- 281 M EUR. - 1421 employees - Production of heat- 3,8 TWh/y -Production of electricity- 1,1TWh/y - 1048 km of heat network 29/04/2015

5. Consumption of biomass 5 Telsiai 5 MW 35,552 GWh Kelme 5 MW 24,371 GWh Palanga 6,4 MW 44,350 GWh Marijampole 16 MW 2,5MW el 123,437 GWh 11,383 GWh el Kazlu Ruda 3 MW 14,686 GWh Vilkaviskis 2,5 MW 27,053 GWh Kybartai 1,5 MW 7,592 GWh Birzai 8 MW 28,984 GWh Druskininkai 12,19 MW 69,179 GWh Alytus 20,2 MW 5,4 MW el 112,706 GWh 47,796 GWh el Vilnius 72 MW 16,8 MW el 499,320 GWh 102,898 GWh el 29/04/2015 GWh th - heat production of biomass per year GWh el - electricity production of biomass per year

6. 6 6 CHP3 BH8 CHP2 604 MW th 360 MW el 932 MW th 28,8 MW el 40,75 MW th 465 MW th BH 7 An Example of Integrated Management: Vilnius District Heating Systems 15 Year Concession Agreement signed with Dalkia in 2002 CHP- combined heat and power plant; BH- boiler-house. 6

7. Electric capacity – 28,8 MW. Heat capacity – 932MW. Vilnius Combined Heat and Power Plant No. 2 (E-2)

8. Third largest power plant in terms of electric capacity in Lithuania (following the Power Plant of Lithuania and Kruonis Pumped Storage Power Plant). Electric capacity in cogeneration mode – 360 MW. Heat capacity – 604 MW. Vilnius Combined Heat and Power Plant No. 3 (E-3)

9. 929/04/2015 Regardless of inflation during the period (~ 30 percent), fixed price hasn't changed a lot. This was made mostly because of investments and good management which increased effectiveness of company. Unfortunately we have no influence to increasing gas prices.

10. Investments 29/04/2015 Activity Obligation under the contract until 2017 M EUR Investment amount M EUR 2002 - 2014 Implementation of information technologies 4,34,0 Modernization of combined heat and power stations 57,158,6 Modernization of regional boiler houses 2,65,5 Renovation of DH network and Connection of new customers 64,055,3 Installation of individual building substations with modern heat exchangers and automatic equipments (decommissioning of uneconomic group substations) 31,335,5

11. Investmens 1129/04/2015Footer Activity Obligation under the contract until 2017 M EUR Investment amount M EUR 2002 - 2014 Application of pump stations to the variable flow in the district heating network 3,52,6 Other investments 4,84,79 TOTAL M EUR 167,8166,3

12. Fuel tank Primary air Ash removal system BFB ESP Chimney Sand tank Flue gas condenser and WESP AMS Boiler after reconstruction

13. Boiler parameters FuelWood chips, peat, straw Boiler typeBKZ-75-39 reconstructed it to (BFB type) Starting year1951 peat / 1961-1971 natural gas and heavy oil/ 2006 biofuel Fuel consumption (average)90 m 3 /h Capacity60 MW Steam capacity75 t/h Steam temperature430 o C Steam pressure39 bar CO (recalculated 6% O2)≤250 mg/Nm 3 Hard particle (recalculated 6% O2) after ESP ≤50 mg/Nm 3 NOx (recalculated 6% O2)≤400 mg/Nm 3 Sand temperature850 o C Efficiency (guarantee tets )87 %

14. T-4 turbine Gas boiler nr5 40 bar(a) collector Biofuel boiler nr4 Gas boiler nr3 1,2 bar(a) header 12 MWe New T-5 turbine 16,67MWe T-3 turbine 14

15. No.ParametersUnitValue 1Electrical capacityMWe16,67 2VoltagekV6.3±10℅ 3Heat outputMWth53,3 4Live steam pressurebar40 5Live steam temperature oCoC440 6Turbine net efficiency%95.7 7Revolutions per minute turbine/generatorrpm8120/1500 8Live steam flowt/h78 15 Turbine MAN Turbo AG MARC 4 – C01

16. From boiler <200 mg/Nm3 ~180-200°C To chimney1-5 mg/nm3 ~50-55°C To WH boilers~50-60°C From heating network ~40-45 °C Clean condensate to electric magnet Flue gases condenser Flue gases economaizer ID fans Water separator WESP Water treatment modul (capacity 12-18 MW, depends on fuel moisture, water temperature, flue gases temperature)

17. FGC - for recover heat from flue gas and for reducing CO2 emissions By using of FGC bio mass boilers efficiency increased 20-25%, that lets return approximately 102.4 GWh annual heat energy( and that is about 3% of heat energy which is produced in E-2 and E-3 power plants) FGC reduces natural gas costs, have a long operation period (~20 years) and have a low operational cost Good payback 17 Flue gases condenser

18. The Vilnius CHP-2 biomass unit projects: Start of BFB boiler installation - June 2005: -Retrofit a 1953 existing boiler (Thermal capacity - 60 MW, from it 12 MWel). Installation of a bubbling fluidized bed, construction of fuel handling system and electrostatic filter and etc.; -Beginning of operation: October 2006. Annual output: 420 GWh (heat) and 64.8 GWh (electricity); -Fuel: from 200 to 220 th. t. of wood biomass (70% also 10% of straw from it) and peat 30%); -Gas consumption by Vilniaus Energija reduced by 8%, CO2 emissions cut by 96 000 t. per year; -Investments - 11 700 k€. Installation of new 16,7 MWe turbine instead of old one 12 MWe, output of electricity increased by 33,1 GWh: - Investments - 7 183 k€. Flue gas condenser started to operate in April 2010: -54,1 GWh/year flue gas heat recovery, CO2 cut by 12 000 t.; -Investments - 7 860 k€. Total – 26 743 k€. VILNIUS CHP-2 BIOMASS UNIT PROJECT 18

19. ) Thank You for Attention 29/04/2015Vilniaus energija