Wednesday, 28 July 2021 02:04 GMT

AB 'Ignitis gamyba' approved Kruonis Pumped Storage Hydroelectric Powerplant expansion plan London Stock Exchange:IGN

( MENAFN - GlobeNewsWire - Nasdaq A)B 'Ignitis grupė' (hereinafter – the Company) informs that on 24 February 2021 the Supervisory Board of its subsidiary AB 'Ignitis gamyba' approved the decision of the Management Board of AB 'Ignitis gamyba' to approve the expansion plan of the Kruonis Pumped Storage Hydroelectric Powerplant (hereinafter – Kruonis PSHP) and initiate the first stage of the development – a tender for technical consultation services.

In 2020 the technological feasibility study and the socioeconomic analysis of the 5th unit of Kruonis PSHP were carried out, which aimed to determine the possible variants to modernise the powerplant. During the technological feasibility study, several possible scenarios of Kruonis PSHP expansions were assessed – from the possibility to modernise the current unit, to the possibility to install a new 110–225 MW hydropower unit. After assessing the needs of the energy distribution system operator and according to the recommendations of the socioeconomic analysis, it was decided that the most reasonable solution is to install a 110 MW hydropower synchronous unit. The conclusion of the socioeconomic analysis states that, should such hydropower unit be built, the public would benefit by more than EUR 150m in the long-term. 

The first procurement will select the contractor, which will help AB 'Ignitis gamyba' to prepare the technical requirements for the new unit. AB 'Ignitis gamyba' notes that the approval of the business plan is not tantamount to the investment decision. AB 'Ignitis gamyba' will decide on the investment into the expansion of Kruonis PSHP only after the results of the contractor procurement are received and after the assessment of the construction costs.

The expansion of Kruonis PSHP would contribute towards implementing the goals of the National Energy Independence Strategy (hereinafter – NEIS). It must be noted that NEIS stipulates that the synchronisation project of Lithuania's electricity system is a strategic priority for national security. The new hydropower unit in Kruonis PSHP is necessary in order to ensure the energy system demand of the state, to reduce the energy dependency on the imported electricity by retaining local, reliable and competitive electricity generation while increasing the internal energy generation capacity at the same time. The expansion of Kruonis PSHP is also set out in the key technical document presented by the Government for the preparation of synchronisation with the networks of Continental Europe. 

According to the preliminary assessment, the 5th hydropower unit of Kruonis PSHP will commence operations in 2025.

For more information please contact:

Artūras Ketlerius
Head of Public Relations at Ignitis Group

+370 620 76076


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