1. ENERGY AGENCY LITHUANIA Perspective for the EU Structural Assistance to the Energy Projects in Lithuania for the period 2007 - 2013 Marijus Franckevičius Director Energy Agency, Lithuania 23 November 2006, Reval Hotel Lietuva, Vilnius Public Private partnership in the Baltics and Europe Alternative means of financing Energy and Infrastructure projects

2. ENERGY AGENCY LITHUANIA Selected Key Messages from Operational Programs (1) The Lithuanian national energy supply networks and systems substantially meet current customers needs, however, majority of equipment are outdated in all respects and do not meet modern standards of security and reliability of supply Natural gas is supplied from a single source (Russia), therefore, projects aimed at increasing reliability and safety of energy supply must be implemented Energy supply networks and systems must be modernised by applying state-of- the-art technological solutions aimed at increasing the security and reliability of energy supply and by improving opportunities for fuel diversification and power generation at co-generation plants Non-decreasing social, economic, and territorial inequalities between different Lithuanian regions as well as between the cities and rural areas, determine unequal possibilities to support, properly maintain, and renew the available housing, thus, physical degradation of residential environment and buildings as well as lack of social housing is observed in separate areas of the country (especially in problematic territories)

3. ENERGY AGENCY LITHUANIA Selected Key Messages from Operational Programs (2) The system for collection of recyclable and dangerous waste as well as management of biodegradable waste is underdeveloped Major energy plants using traditional energy sources have no treatment equipment for air emissions and, therefore, fail to meet EU requirements Energy consumption is inefficient in Lithuania because of poor energy characteristics of most public buildings Low level of performance of boiler houses and of electricity generated by CHP plants Underused energy potential of renewable energy resources

4. ENERGY AGENCY LITHUANIA Provisional allocation of resources to Energy Related Projects FundOPPriorityAction group Budget, MLt ERDF Economic Growth (2) Basic Economic Infrastructure (4) Energy Supply Networks (1)489.350 Promotion of Cohesion (3) Local and urban development, conservation of cultural heritage and nature, adaptation for tourism development (1) Housing development in identified problem areas (1) 200.000 Cohesion Environment and sustainable development (3) Water supply and waste water treatment systems (1) Modern waste management systems (2) Improvement of air quality (3) 2,697.000 Increase of energy efficiency and use of RES (4) 996.610

5. ENERGY AGENCY LITHUANIA Energy supply networks (Possible projects) Electricity (150 million Lt): –Construction of new electricity transmission lines –Construction / modernization of electricity distribution network –Construction / modernization of transformer sub-stations Natural gas (90 million Lt): –Construction of new natural gas transmission pipelines –Construction of new natural gas distribution network, connection of new consumers District heating (249 million Lt): –Replacement of outdated DH pipes with new modern ones Total ERDF allocation – 489 million Lt (142 MEuro)

6. ENERGY AGENCY LITHUANIA Length, km. 82 Cost, mln. Lt 92 Construction duration, years 4 Energy supply networks - electricity (Project example)

7. ENERGY AGENCY LITHUANIA Energy supply networks – natural gas (Project example) Length, km. 160 Cost (incl. distribution), mln. Lt 242 Construction duration, years 3

8. ENERGY AGENCY LITHUANIA Energy supply networks – District Heating (Project example) Renovated pipes (agreed 100 mm diameter), km. 1800 Duration, m. till 2015 Cost, mln. Lt400 Fuel saved, ktoe30 Reduced CO 2 emission, kt. 70,4

9. ENERGY AGENCY LITHUANIA Increase of energy generation and consumption efficiency and use of renewable energy resources (Possible projects) Increase efficiency of energy production (94 million Lt): –Modernization of CHP plants –Modernization of boilers operating in DH systems –Construction of high-efficiency CHP plants Utilization of RES for energy production (111 million Lt): –Fuel conversion to RES at boiler houses or CHP plants –Construction of new boilers or CHP plants fueled by RES Renovation of public buildings (792 million Lt): –Reconstruction / upgrading of building envelope and energy systems, reducing energy consumption Total Cohesion Fund allocation – 997 million Lt (289 MEuro)

10. ENERGY AGENCY LITHUANIA FUELS USED FOR DH 1997 - 2005 It is foreseen that production of heat using local, renewable and waste resources would make 17% in general heat balance in 2010 and 23% - in 2020

11. ENERGY AGENCY LITHUANIA Installed capacity 0.2 – 1 MW Installed capacity 1 - 10 MW Installed capacity more than 10 MW INSTALLED WOOD PROJECTS IN LITHUANIA (~400 MW) http://www.avei.lt Possible increase of RES based generating capacities due to Structural Funds support ~ 200 MW

12. ENERGY AGENCY LITHUANIA Energy saving possibilities in public buildings (Source – National Energy Efficiency Program) Type of buildings Area, mill. m 2 Investments, mill. Lt Expected savings, MWh/year MaximalOptimalMaximalOptimal Buildings of administrative mission 7.91738126410431010 Tertiary sector5.9885590620531 Buildings of educational, cultural and sport mission 8.71305785653509 Healthcare sector2.5425300213182 Religious and other special mission 5.1459357274268 TOTAL30.14812329428032500