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

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3. 3 LITHUANIA Population – 3.44 million; Area – 65.3 thousand square km; In the Middle Ages - the largest kingdom in Eastern Europe (area – 930 000 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.

4. 4 XIV c.

5. 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. 6 SOME IMPORTANT DATES 1992 - Lithuania restored the WEC membership. March, 1995 - the Law on Energy was adopted by the Parliament. 2004 - Lithuania became the member of NATO and the EU.

7. 7 SOME DATES OF ENERGY REFORMS IN LITHUANIA 1995 - Joint stock companies were established in the energy sector of Lithuania. 1997 - The first step of reorganization of Lietuvos Energija AB. District heating utilities and CHPs were separated from Lietuvos Energija AB and transferred to municipalities. 1999 - Oil refinery Mažeikių Nafta AB was privatized. 2000 - Procedures of gas sector privatization were started. 2001 - Reorganization of Lietuvos Energija AB was completed. 2003 - West Distribution Company was privatized. 2004 - The second step of privatization of Lietuvos Dujos AB was completed.

8. 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. 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. 10 NEW INTERCONNECTIONS Poland – Lithuania; Estonia – Finland; Sweden – Lithuania.

11. 11 POWER GRIDS IN BALTIC SEA REGION

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

13. 13 THANK YOU!