District Heating – Towards the Country’S Energy Supply Independence and Clean Environment

Heat is supplied to consumers via underground heating networks built in Lithuanian cities and towns and in the majority of the country’s settlements. Kauno m. šilumos tiekimo schema DISTRICT HEATING – TOWARDS THE COUNTRY’S ENERGY SUPPLY INDEPENDENCE AND CLEAN ENVIRONMENT

Raudondvario RK

intergruoto tink izoliuoto tinklo Šilumos trasos Integruoto tinklo magistralės Integruoto tinklo skirstomasis Izoliuoto tinklo gatviu linijos miesto riba

LITHUANIAN DISTRICT HEATING ASSOCIATION LITHUANIAN DISTRICT HEATING ASSOCIATION Naugarduko g. 55A, LT-03204 Vilnius Tel: +370 5 235 6043, fax: +370 5 235 6044 www.lsta.lt 1998–2008 THE MAJORITY OF LITHUANIANS WHO ARE OUR MAIN HEAT CUSTUMERS LIVE IN MULTI-APARTMENT BUILDINGS Lithuanian District Heating Association

District Heating Sector – Today and Tomorrow

A decade of activities of the Lithuanian District Heating Association is an excellent opportunity to look back and examine completed works, to assess the achievements and meet new challenges awaiting for the heat sector in the future as well as to remember the situation ten years ago and consider in which direction we will move forward.

Today, nobody doubts that district heating is the most reliable, modern and consumer-friendly way to heat homes. However, let us remember how many eﬀorts and how much energy and funds of heat suppliers were needed to prove this truth. It is only with enormous investments and our consistent and purposeful work that the morally and physically obsolete heat sector was upgraded and achieved a world-class level.

In the course of years, the main objective of heat suppliers has remained the same – to organise and ensure reliable heat supply and a stable quality of the service for their customers. It is true that following the upgrade of the majority of heat supply systems in Lithuania, we have faced new market conditions.

It has been several years already that the directions of our work have been adjusted by primary energy sources that are getting more and more expensive. We can only take pleasure in the fact that we succeeded in ﬁnding a solution – we have decidedly started to seek Lithuania’s energy independence.

Every year the country’s heat sector continues to expand, with new boiler houses that use not imported but local fuel – biofuel – being built. This year biofuel will account for 19% of the total quantity of fuel used for heat production. The eﬀorts of heat suppliers in building boiler houses using local fuel have enabled Lithuania to become a leader in biofuel use in the Baltic countries.

Resources that are becoming more and more expensive deﬁne new activity directions not only for heat suppliers but also for the users of our services – citizens of our country. Currently, one of the main problems in the Lithuanian economy is obsolete multi-apartment buildings where the major part of heat energy that is becoming more expensive is wasted.

Criticism on an increase in heating tariffs is usually directed at heat suppliers even though in the majority of cases the price for residents increases due to the leaky walls of multi-apartment buildings. For this reason, we must combine our efforts to achieve that individuals would assess the quality and price of the services proposed by us not according to the condition of their homes. We must make every effort to ensure that the renovation of obsolete buildings would be not a rarity but the usual practice in our country.

Andrius Janukonis Chairman of the Council of the Lithuanian District Heating Association (LDHA) Council of the Lithuanian District Heating Association

Andrius Janukonis Jonas Jurkus Chairman of the LDHA Council Member of the LDHA Council Member of the Board of Directors of Director of Vilniaus energija and UAB Litesko UAB Mažeikių šilumos tinklai

Aleksandras Sigitas Matelionis Alfredas Sadzevičus Linas Samuolis Member of the LDHA Council Member of the LDHA Council Member of the LDHA Council General Manager of General Manager of Vice-President of AB Kauno energija AB Jonavos šilumos tinklai UAB Vilniaus energija

Vytautas Šidlauskas Vytautas Valutis Member of the LDHA Council Member of the LDHA Council General Manager of General Manager of AB Panevėžio energija AB Klaipėdos energija Lithuanian District Heating Association

Map of District Heating in Lithuania

UAB Mažeikių UAB UAB Fortum Joniškio SĮ Skuodo šiluma šilumos tinklai 16 MW Akmenės energija energija 166 MW 24 MW 12 GWh 168 GWh 42 MW 68 GWh 33 GWh Skuodas UAB Litesko UAB Kretingos Mažeikiai Biržų šiluma šilumos tinklai AB Panevėžio 52 MW UAB Plungės Akmenė Joniškis energija, Pasvalio ŠTR 44 GWh 48 MW šilumos tinklai 43 GWh UAB Pakruojo šiluma 48 MW 44 MW UAB Litesko 46 GWh AB Panevėžio 76 GWh 30 MW Biržai UAB Litesko Kretinga Telšių šiluma AB Šiaulių energija 21 GWh energija, Rokiškio ŠTR Palangos šiluma Plungė 72 MW 299 MW Pasvalys AB Panevėžio 100 MW 89 MW 79 GWh 543 GWh 130 GWh 100 GWh Pakruojis energija, Kupiškio ŠTR UAB Rietavo 12 MW AB Panevėžio Klaipėda komunalinis ūkis Telšiai Šiauliai 9 GWh UAB Baisogalos Rokiškis energija, Zarasų ŠTR 8 MW UAB Litesko bioenergija AB Klaipėdos 15 GWh 29 MW energija Kelmės šiluma 8 MW AB Panevėžio energija Kupiškis 39 GWh Rietavas 8 GWh 1017 MW 23 MW 399 MW 1062 GWh 29 GWh Radviliškis 490 GWh Zarasai UAB Anykščių šiluma UAB Neringos UAB Šilalės Kelmė UAB Utenos energija šilumos tinklai UAB Radviliškio šiluma 46 MW šilumos tinklai 23 MW Panevėžys 57 GWh 98 MW 6 MW 68 MW UAB Ignalinos 7 GWh 27 GWh UAB Raseinių 65 GWh 165 GWh UAB Šilutės Šilalė šilumos tinklai šilumos tinklai šilumos tinklai 32 MW AB Panevėžio Anykščiai 28 MW 94 MW UAB Tauragės 58 GWh energija, Kėdainių ŠTR Utena 39 GWh 77 GWh šilumos tinklai Raseiniai 119 MW Ukmergė 64 MW 33 GWh Molėtai Ignalina 90 GWh Šilutė Kėdainiai UAB Ukmergės energija AB Kauno energija 60 MW UAB Molėtų šiluma Tauragė Jurbarko šilumos tinklai AB Jonavos Švenčionys šilumos tinklai 76 GWh 23 MW Jurbarkas 41 MW Jonava 28 GWh Pagėgiai 41 GWh 146 MW UAB Širvintų šiluma UAB Fortum 195 GWh Švenčionių energija UAB Pagėgių UAB Šakių šilumos 23 MW 32 GWh 31 MW komunalinis ūkis tinklai AB Kauno energija 46 GWh UAB Kaišiadorių šiluma 23 MW 2080 MW UAB Nemėžio 23 GWh 1783 GWh 54 MW Širvintos komunalininkas UAB Litesko 49 GWh Kazlų Rūdos šiluma 5 MW Kaunas 9 GWh Šakiai 34 MW Kaišiadorys 21 GWh UAB Eniras UAB Vilniaus raj. ŠT UAB Prienų energija UAB Elektrėnų 20 MW 7 MW Vilkaviškės UAB Litesko Prienai 30 MW komunalinis ūkis 20 GWh Marijampolės šiluma 18 GWh 31 GWh 79 GWh UAB Litesko 296 MW VILNIUS 189 GWh UAB Birštono šiluma Vilkaviškio šiluma Trakai UAB Vilniaus energija 22 MW 58 MW 23 GWh UAB Trakų 2332 MW 48 GWh Marijampolė šilumos tinklai 2946 GWh Kalvarija SĮ Simno UAB Litesko 43 MW komunalininkas 38 GWh Alytaus energija Šalčininkai UAB Kalvarijos 9 MW 457 MW 5 GWh komunalininkas Alytus 273 GWh UAB Šalčininkų Lazdijai šilumos tinklai UAB Varėnos šiluma 26 MW UAB Lazdijų šiluma UAB Litesko 90 MW 29 GWh 37 MW Druskininkų šiluma 66 GWh 21 GWh 115 MW 145 GWh Varėna Druskininkai

Installed heat capacity, MW Annual heat production, GWh

District heating company Branches of AB Panevėžio energija Branches of AB Kauno energija Branches of Litesko (Dalkia) Branches of Vilniaus energija (Dalkia) Branches of UAB E energija Branches of Fortum Heat Lietuva List of the members of the Lithuanian District Heating Association

District heating companies

1. UAB Anykščių šiluma 12. AB Kauno energija 23. UAB Šakių šilumos tinklai Vairuotojų g. 11, LT-29107 Anykščiai Raudondvario pl. 84, LT-47179 Kaunas Gimnazijos g. 22/2, LT-71116 Šakiai Tel: 8 381 59 165, → see p. 6 Tel: 8 37 305 650, → see p. 16 Tel: 8 345 60 588, → see p. 32

2. UAB Birštono šiluma 13. AB Klaipėdos energija 24. AB Šiaulių energija B. Sruogos g. 23, LT-59209 Birštonas Danės g. 8, LT-92109 Klaipėda Pramonės g. 10, LT-78502 Šiauliai Tel: 8 319 65 801, → see p. 7 Tel: 8 46 410 850, → see p. 18 Tel: 8 41 591 200, → see p. 34

3. UAB E energija 14. UAB Lazdijų šiluma 25. UAB Šilalės šilumos tinklai Jogailos g. 4, LT-01116 Vilnius Gėlyno g. 10, LT-67129 Lazdijai Maironio g. 20b, LT-75137 Šilalė Tel: 8 5 268 59 89, → see p. 8 Tel: 8 318 51 839, → see p. 21 Tel: 8 449 74 491, → see p. 33

4. UAB Elektrėnų komunalinis ūkis 15. UAB Litesko 26. UAB Šilutės šilumos tinklai Elektrinės g. 8, LT-26108 Elektrėnai Jočionių g. 13, LT-02300 Vilnius Klaipėdos g. 6a, LT-99116 Šilutė Tel: 8 528 58 081, → see p. 9 Tel: 8 5 266 75 00, → see p. 22 Tel: 8 441 62 144, → see p. 36

5. UAB Fortum Joniškio energija 16. UAB Mažeikių šilumos tinklai 27. UAB Širvintų šiluma Bažnyčios g. 4, LT-84139 Joniškis Montuotojų g. 10, LT-89101 Mažeikiai Vilniaus g. 49, LT-19118 Širvintos Tel: 8 426 53 488, → see p. 10 Tel: 8 443 98 171, → see p. 24 Tel: 8 382 51 831, → see p. 37

6. UAB Fortum Švenčionių energija 17. UAB Molėtų šiluma 28. UAB Tauragės šilumos tinklai Vilniaus g. 16a, LT-18123 Švenčionys Mechanizatorių g. 7, LT-33114 Molėtai Paberžių g. 16, LT-72324 Tauragė Tel: 8 387 51 593, → see p. 11 Tel: 8 383 51 962, → see p. 25 Tel: 8 446 62 860, → see p. 38

7. UAB Giraitės vandenys 18. UAB Pakruojo šiluma 29. UAB Utenos šilumos tinklai Topolių g. 5, Giraitė, LT-54310 Kauno r. Saulėtekio g. 34, LT-83133 Pakruojis Pramonės g. 11, LT-28216 Utena Tel: 8 37 328 128, → see p. 12 Tel: 8 421 61 139, → see p. 28 Tel: 8 389 63 641, → see p. 39

8. UAB Ignalinos šilumos tinklai 19. AB Panevėžio energija 30. UAB Varėnos šiluma Vasario 16-osios g. 41, LT-30112 Ignalina Senamiesčio g. 113, LT-35114 Panevėžys J. Basanavičiaus g. 56, LT-65210 Varėna Tel: 8 386-52 701, → see p. 13 Tel: 8 45 463 525, → see p. 26 Tel: 8 310 31 029, → see p. 40

9. UAB Izobara 20. UAB Plungės šilumos tinklai 31. UAB Vilniaus energija Linų g. 44, LT-20173 Ukmergė V. Mačernio g. 19, LT-90142 Plungė Jočionių g. 13, LT-02300 Vilnius Tel: 8 340 600 40, → see p. 14 Tel: 8 448 72 077, → see p. 29 Tel: 8 5 2667 199, → see p. 42

10. AB Jonavos šilumos tinkai 21. UAB Radviliškio šiluma 32. UAB Vilniaus rajono šilumos tinklai Klaipėdos g. 8, LT-55169 Jonava Žironų g. 3, LT-82143 Radviliškis Kranto g. 24, LT-15177 Nemenčinė Tel: 8-349 52 189, → see p. 15 Tel: 8 422 60 872, → see p. 30 Tel: 8 5 2381 275, → see p. 41

11. UAB Kaišiadorių šiluma 22. UAB Raseinių šilumos tinklai J. Basanavičiaus g. 42, LT-56135 Kaišiadorys Pieninės g. 2, LT-60133 Raseiniai Tel: 8 346 51 139, → see p. 20 Tel: 8 428 51 951, → see p. 31

Other companies operating in the heat sector

1. UAB Alfa Laval 4. UAB Gandras ENERGOEFEKTAS 7. UAB LOGSTOR M. K. Čiurlionio g. 66, LT-03100 Vilnius Veteranų g. 5, LT-31114 Visaginas Raguvos g. 7, LT-44275 Kaunas Tel: 8 5 2150 091, → see p. 44 Tel: 8 386 70 424, → see p. 47 Tel: 8 37 409 440, → see p. 50

2. UAB Ekotermijos servisas 5. UAB Grundfos Pumps 8. Public Enterprise Technical Supervision Service Karo Ligoninės 19-2, LT-44352 Kaunas Smolensko g. 6, LT-03201 Vilnius Naugarduko g. 41, LT-03227 Vilnius Tel: 8 37 424 514, → see p. 45 Tel: 8 5 2395 430, → see p. 48 Tel: 8 5 2131 330, → see p. 52

3. UAB Fortum Heat Lietuva 6. Lithuanian Technical Insulation Contractors 9. AB Vilniaus šilumos tinklai S. Žukausko g. 21, LT-08234 Vilnius Association Kudirkos g. 14, LT-03105 Vilnius Tel: 8 5 2430 043, → see p. 46 Ringuvos g. 65A, LT-45245 Kaunas Tel: 8 5 2107 431, → see p. 51 Tel: 8 37 340 448, → see p. 49 UAB Anykščių šiluma

UAB Anykščių šiluma Vairuotojų g.11, LT-29107 Anykščiai Tel: 8 381 59165 Fax: 8 381 59441 [email protected] Association member since 1998 (the founder). Virgilijus VAIČIULIS General Manager of UAB Anykščių šiluma

The history of UAB Anykščių šiluma dates back to 1979, when the Industrial Corporation of Anykščiai Region subordinate to the State Committee for Industrial- Technical Provision of the Agricultural Sector of the Lithuanian Soviet Socialist Republic was established. UAB Anykščių šiluma has always been independent and never belonged to Lietuvos energija. Sixty per cent of heat consumed by the town of Anykščiai was purchased from AB Anykščių vynas, whereas the remaining quantity was produced in its three block boiler houses. Heat energy was provided to customers in the villages of Debeikiai, Kurkliai, Svėdasai, Traupis, Viešintai, Dabužiai and Leliūnai and in Aknystos, Raguvėlė, Smėlynė, Staškūniškis, Svirnai, Ažuožeriai, Šeriai, Rubikiai, Žiedonys, Elmininkai, Vaitkūnai ir Levaniškis rural areas. Thousands tons of coal, fuel oil and furnace fuel were used for heat production. The boiler houses in Troškūnai, Traupis, Raguvėlė and Debeikiai were reconstructed in 1998. After the heat demand had dropped, UNIVERSAL 6, E/19 and other boilers were dismantled and new UT type boilers using wood fuel were installed. The investment into the use of local fuel in heat production proved to be successful: the company’s economic end of 2006. In 2006, the base price for heat energy was set at 18.12 ct/kWh but a subsidy performance was improved and its fuel expenses and pollution taxes were reduced. The totalling 2.32 ct/kWh was applied to residential customers. company’s fuel balance changed greatly as well. Coal consumption dropped from 35% to The installed capacity of the currently operating boiler houses is 45.5 MW but 17%, and biofuel consumption grew up to 51%. the maximum heat generating capacity available during the winter heating season is In 1998, the arrival of natural gas in Anykščiai provided an opportunity to reconstruct 19,297 MW, the minimum heat generating capacity stands at 9,956 MW, and the maximum the heating infrastructure of the town. heat generating capacity available during the non-heating season is 2,196 MW. The year 1999 saw the reconstruction of the district heating facilities for a total The length of the district heating pipeline network is 27.9 km. The diameter of pipes of EUR 4.5 million. Five new boiler houses were built and seven boiler houses were is obviously too large. Losses are among the largest in the country, at 27.82%. Seeking to reconstructed. The gas boiler houses were fully automated, and the boiler houses in reduce heat losses, the reconstruction project for the district heating network without a Kavarskas and Svėdasai using shale oil and liquefied gas were reconstructed. BIASI four-pipe system was prepared. NTN-AR type boilers were installed. In 2006, the company commenced the reconstruction of hot water supply networks After the new and reconstructed boiler houses were put into operation and the cost- by disposing of a four-pipe system and transferring hot water preparation into buildings. inefficient boiler houses had been closed, heat consumption was reduced by 50% – to The reconstruction project for hot water supply networks is co-financed by the EU 38.09 MW per year. funds. The value of the project is LTL 2.2 million, of which LTL 1.18 million comes from Following the 1999 reconstruction, the price of heat energy was one of the highest the European Regional Development Fund, LTL 110,000 is the amount allocated by the in the country, i.e. 16.3 ct/kWh. municipality, and the remaining amount is the company’s share in this project. In 2001, the Anykščiai District Municipality announced a tender for the lease of the A large number of our employees have been working in the company since the date heating infrastructure. However, the tender did not take place. of its incorporation. Their experience and professional qualifications guarantee a reliable In 2002, the heating tariff decreased to 15.8 ct/kWh and stood at this point until the and safe supply of heat energy to customers in the district and town of Anykščiai. UAB Birštono šiluma

UAB Birštono šiluma B. Sruogos g. 23 LT-59209 Birštonas Tel: 8 319 65801 Fax: 8 319 65801 [email protected]; www.birstonosiluma.lt Association member since 2005. Albertas KANDROTAS General Manager of UAB Birštono šiluma

The Joint Boiler House and Heat Network Authority of the town of Birštonas of the heating infrastructure as UAB Litesko and Panevėžys-based ETC Suomijos energija subordinate to the then kombinate (state-owned conglomerate) of utility companies started to show interest in our company. At one time, a decision to rent out the heating of the town and the Industrial Fuel Board under the Ministry for Communal Economy district heating facilities was almost made but the Municipal Council decided to carry was established on 1 October 1981. Heat energy was supplied to the town from its three out the analysis of the heating infrastructure by identifying directions for the most cost- block boiler houses which used coal and furnace fuel. The present regional boiler house of efficient investments and to prepare recommendations for their implementation. During the town was still under construction. This boiler house was built and transferred to the 1999-2000, the Laboratory of Power-Technological Processes of the Lithuanian Energy district heating company in the summer of 1982 by the Kaunas-based brewery Ragutis; Institute managed by Prof. Dr. habil. M. Tamonis prepared the renovation plan for the the branch of the brewery used to bottle mineral water in Birštonas. Steam necessary for heating infrastructure of the Birštonas Municipality. The Municipality approved this plan mineral water production had been used for almost 20 years – until 2001. The two steam (reviewed by Prof. L.Ašmantas) and decided that it could be implemented by the district boilers DKVR-10/13 installed in the boiler house had only one customer – the mineral heating company itself. When implementing this plan, the steam supply to customers was water bottling unit; however, this situation changed after three years. stopped in 2001. An automated gas-fired hot water boiler with a capacity of 2.5 MW was In 1985, when new heating routes were started to be used, the block boiler houses installed. After the special purpose company UAB Birštono šiluma had been established, and around 20 small boiler houses of stores, schools and various institutions were the number of employees was reduced by almost 16%, two wood-fired hot water boilers liquidated. The current regional boiler house started to supply district heat to the town. with a capacity of 2 MW were installed, and collective boiler houses were liquidated. This level of centralisation has been maintained until the present, except for several small Following the separation from AB Alytaus šilumos tinklai in 2000, the heating entities using natural gas for heating. From 1982 until the end of 2003, the boiler house tariff was 14.73 ct/kWh. The Municipality subsidised 2.1 ct/kWh of the heat price used only natural gas as a fuel. Currently, the wood-chip boilers are used to produce more for all customers until March 2005. In 2004, the base price for heat energy was set at than half of the total heat. 14.45 ct/kWh. Almost 20 years ago, the length of the hot water and steam pipeline was around This stable price dynamics was determined by the implementation of the 19 km. Its throughput was planned on the basis of high projections and therefore, heat aforementioned measures and quite stable heat consumption. However, the main factor losses are incurred now. In 2007, when the last group heat substations were liquidated, is the use of wood fuel along with an increase in the price of natural gas. almost 9 km of water supply networks was used. The diameter of most pipelines is too Since March 2005 the Municipality has been applying a heating price subsidy only large and thus heat losses in pipe networks are great but they are reduced every year. In to residential customers. This is quite a large subsidy – 3.45 ct/kWh. After the majority 2003, technological and commercial losses of the heat networks accounted for 28.70%, of district heating companies have raised heating tariffs, the heat price applicable to the whereas in 2005 these losses comprised 23.29%, and this makes a 5.41% drop in three residents of Birštonas is one of the lowest in Lithuania. The price for heat supplied by our years. The plans are to further reduce these losses by not using the hot water pipelines, company remained the same in 2005, 2006, and 2007. distributing total heat supplied, and renovating the heat networks. It is noteworthy that it would be much harder for a small district heating company In the course of years, the company had to change names and signboards for a to operate without the support of the Municipality. Thanks to the Municipality, natural number of times. The most recent reform was the reorganisation of AB Alytaus šilumos gas was brought to Birštonas, the boiler house was built, the pipelines were laid, and the tinklai by establishing the special purpose private limited liability company UAB Birštono infrastructure of the town was developed. The Municipality provides further support to šiluma in April 2000. The Birštonas Municipality holding a 99.93% stake became the main the upgrading of the boiler house and renovation of the district heating networks. shareholder, and the remaining shares in the company are held by two natural persons. In October 2006, UAB Birštono šiluma marked its 25th anniversary. It is a pleasure At the very beginning of the reorganisation of AB Alytaus šilumos tinklai, such lessors to stress that almost 20% of our employees has been working in the company since its establishment. Our company has a small number of employees but their experience, professional qualifications and skills enabled to stabilize the heat price at least during the recent years when rather clear upward trends in the prices can be observed in the country. I believe that the team of our employees is determined to show that today UAB Birštono šiluma is an important and promising district heating company of the town of Birštonas, capable of supplying its customers with high- quality heat energy. UAB E energija

UAB E energija Jogailos g. 4, LT-01116 Vilnius Tel: 8 5 2685989 Fax: 8 5 2685988 [email protected], www.e-energy.eu Association member since 2002. Virginijus STRIOGA General Manager of UAB E energija

Since 1994 the E energija Group has been among the pioneers of private energy in the city for the connection of heating pipeline routes. Investments are also scheduled market in the Baltic States, offering services to the public sector and corporate customers, for the renovation of the heating infrastructure of the Trakai district which is in particularly providing heat energy for household, public and industrial needs. poor condition and which the company started to operate two years ago: a new boiler The Group’s companies produce and supply district heat and hot water to urban house of the town of Trakai that will cost LTL 4.5 million is being designed and will be customers, institutions and organisations in Lithuania, Latvia, and Ukraine. It can be built in the near future. During the next three years, the heating pipeline routes will stated that the companies of the E energija Group are the only district heating companies be connected and renovated, and heat substations will be fitted out in Lentvaris. Last in Lithuania which have expanded heat production and supply in foreign markets. year, a project with a value of LTL 12 million was launched in the district of Akmenė. In addition, the Group’s companies produce and supply heat and electrical energy to The project, which will be completed in two years, will ensure a reliable energy supply industrial enterprises. Heat or industrial steam is supplied to industrial enterprises from to customers and improve indicators of efficiency in energy generation and supply. This the boiler houses with installed capacity of 123 MW. In 2007, 303,237 MWh of energy will be practically the only town in Lithuania which will have the fully renovated district was supplied to industrial customers. heating facilities: from new heat generation equipment to modern heating pipeline routes In Lithuania, 35 boiler houses are used to generate district heat: 15 biofuel-fired with the integrated diagnostic system enabling to ensure maximum reliability of energy boiler houses and 20 gas-fired boiler houses. supply and to avoid failures. After the heat networks had been rented from the municipal companies, every Seeking to make the processes of heat generation and supply more efficient, effort was made to ensure efficiency in energy generation and to reduce losses in the E energija contributes to the reduction of CO2 emissions. E energija is the first company worn-out heating pipeline routes, namely large investments were made in equipment, in Lithuania which has started to invest in the flexible mechanisms of the Kyoto Protocol, new heating pipelines routes complying with the current requirements were designed, namely joint implementation (JI), clean development mechanisms (CDM), and voluntary the obsolete heat supply systems were renovated, and the measures allowing saving fuel gas emission reduction projects (Voluntary), in such foreign countries as Ukraine, Russia, that is becoming more expensive and other resources. The projects for the upgrading, Armenia, and India. Upon the implementation of the project, the obtained future reconstruction of boiler houses and construction of new boiler houses implemented in the emission reduction units (ERU) and certified emission reductions (CER) could meet the covered areas as well as other complex measures aimed at enhancing efficiency in energy demand for tradeable emission permits of almost all Lithuanian companies participating generation and energy saving produced results – from 2001 to 2006, technical losses in in greenhouse gas emissions accounting. the district heating companies managed by the Group reduced by 13%; a large quantity We take pleasure in the fact that the new shareholder of UAB E energija – the of fuel and other resources was saved: the fuel norm decreased 6%, water consumption European Bank for Reconstruction and Development – supports our investments in dropped 84%, and electricity consumption declined 51%. the upgrading of heat generation and supply infrastructure by granting us long-term Seeking to renovate the Ukmergė heat networks and enhance efficiency in energy preferential credits. This will allow us to extend terms of return on investments and to generation and supply, investments were made in the construction of two new boiler make more consumer-friendly investments by mitigating increases in the heating tariff as houses, upgrading of the old boiler houses, and reconstruction of the heating pipeline a result of investment expenses. routes. With a view to increasing efficiency in energy supply, investments are projected UAB Elektrėnų komunalinis ūkis

UAB Elektrėnų komunalinis ūkis Elektrinės g. 8, LT-26108 Elektrėnai Tel: 8 528 58 081 Fax: 8 528 58 092 [email protected]; www.eku.lt Association member since 2006. Ričardas LECKAS General Manager of UAB Elektrėnų komunalinis ūkis

UAB Elektrėnų komunalinis ūkis was established on 26 April 2000. The founder is the Council of the Elektrėnai Municipality. The authorised capital of the company amounts to LTL 17,199,740 and it is divided into shares with the par value of LTL 1 each. All of these shares are held by the Municipality of Elektrėnai. In 2006, the company’s turnover was LTL 13,815,800. As of 31 December 2006, the company had 232 employees. Before the establishment of the municipality, the company had been a division of AB Lietuvos elektrinė called the kombinate (state-owned conglomerate) of utility companies. After the private limited liability company had been established, the works commenced by AB Lietuvos elektrinė were further continued. In 2005, the automation of all district heating units was completed. The company carries out economic operations in the following ﬁelds: - supply of steam and hot water; - collection, treatment and distribution of water; - water supply to residential customers; - sewage and waste disposal, sanitation services; The renovation of 560 m of the heat networks was completed. The centralised - collection, treatment and distribution of sewage; heating parameter management and data transfer system for all multi-apartment - maintenance of sewage systems; buildings is currently being implemented. In 2007, 100 units were installed and the plans - collection and transportation of garbage, industrial and other waste; for 2008 are to install another 50 units. This will comprise all multi-apartment buildings. - pipeline building; The thermo-hydraulic model of the district heating network of the Elektrėnai town and - urban and suburban passenger transportation by bus; the heat supply reliability enhancement programme were prepared. - cargo transport by road and other transport services; The plans for 2008 are to commence looping works in hot water pipelines, and - cleaning and sprinkling of streets, roads and car parking lots; this will enable to enhance the reliability of district heating and at the same time to - administration of common property of owners of apartments and other connect new potential customers. We hope to receive EU funds for the performance of premises, etc. these works. Heat is supplied via a district heating network by purchasing it from AB Lietuvos elektrinė. The company is a heat supplier delivering heat to multi-apartment buildings in the town of Elektrėnai (except for the private residential area) and in the village of Kareivonys and other buildings for business and public purposes. The book value of the heating infrastructure amounts to LTL 6,637,600. The length of the maintained pipeline is 20.4 km. The number of customers is 203 district heating units connected to the heat feeders in the buildings. In 2006, a total of LTL 223,300 was invested in the heating infrastructure. The heating pipeline routes were partially replaced in Trakų street and in the Obeniai industrial area. The amount allocated for the maintenance and operation of the district heating facilities in 2006 totalled LTL 351,200. The total number of apartments in the multi-apartment buildings is 5,198 units, or 263,600 m2. The year 2007 saw the largest investments in the heating infrastructure, i.e. over LTL 1 million. UAB Fortum Joniškio energija

UAB Fortum Joniškio energija Bažnyčios g. 4, LT-84139 Joniškis Tel: 8 426 53488 Fax: 8 426 52201 [email protected] Association member since 2006. Jaunius ZABARAUSKAS General Manager of UAB Fortum Joniškio energija

UAB Fortum Joniškio energija was registered on 30 October 2000. The incorporators of the company are UAB Fortum Heat Lietuva (the name changed from UAB Suomijos energija) and SP UAB Joniškio šilumos tinklai. The main activities of the company are heat generation and distribution by delivering heat to residential customers, companies and organisations in Joniškis, Žagarė, and the village of Gataučiai as well as natural gas supply to industrial enterprises. Before the company was established, heat energy had been produced and supplied by SP UAB Joniškio šilumos tinklai in the town and district of Joniškis. From 2000 until September 2004, the cost price of heat energy produced by SP UAB Joniškio šilumos tinklai amounted to 21.10 ct/kWh and the heating tariff was 16 ct/kWh. During the period 2000-2005, the heating infrastructure of UAB Fortum Joniškio energija was restructured and renovated according to the action plan aimed at reducing the cost price of supplied heat energy; therefore, the cost price of heat energy was 15.19 ct/kWh in 2004 and 14.30 ct/kWh in 2005. When the gas distribution pipeline Joniškis-Meškuičiai with a total length of 23 km was built in 2001, an opportunity has arisen to reconstruct and gasify the Melioratoriai, central and Pakluoniai boiler houses in the town of Joniškis. For this reason, the fuel used, i.e. fuel oil, was replaced by natural gas. The automation of these boiler houses allowed for manless operation. Upon the gasification of the central boiler house, the steam and condensate pipeline routes with a length of 750 m were eliminated. The Melioratoriai boiler house which was situated at the distance of more than 1 km from the residential area was transferred to the residential area. In 2001-2002, the cost-inefficient coal-fired and electric boiler houses situated in the villages around Joniškis and in the town of Joniškis, in which the heat cost price was from 25 ct/kWh to 40 ct/kWh, were closed by In 2005, UAB Fortum Joniškio energija reconstructed the Žagarė boiler house by offering alternative heating methods to residential customers. In 2002, the renovation replacing shale oil by biofuel. In 2005, the heat substations of 64 dwelling-houses were of substations in the dwelling-houses of the Pakluoniai block was carried out, and this renovated. This allowed for the elimination of the hot water pipeline routes with a total allowed for the disposal of the hot water pipeline routes that were in particularly poor length of 5.5 km that were in poor condition. The further upgrading of the heat networks condition. scheduled by the company will ensure better quality of heat supplied. The reconstructions of the boiler houses and the reduction of the number of During 2006-2007, 2.5 km of the hot water pipelines were reconstructed. In 2006, employees during the period 2000-2004 allowed for a decrease in heating tariff rates the condensate heat exchangers (economizers) which increase the efficiency of boilers, to 15 ct/kWh. reduce pollution and save fuel were fitted out in the central and Melioratoriai boiler house. In 2006, the boiler house in the village of Gataučiai was reconstructed: the coal- fired boiler was dismantled and an automated gas boiler house with a capacity of 0.5 MW was built in the reconstructed premises. The dispatcher control system was installed for the management of the (central, Pakluoniai and Melioratoriai) boiler houses in the town of Joniškis and in the village of Gataučiai by fitting out a remote management and parameter monitoring station of the boiler houses in the central boiler house. During 2005-2006, the renovation of the heating infrastructure was carried out; however, due to rising natural gas prices (gas accounts for 93% of fuel used) the heating tariff of 17.88 ct/kWh was set in September 2006. As a result of constantly rising natural gas prices, the tariff of 20.43 ct/kWh was set in September 2007. The district heat substations of seven dwelling-houses in Žagarė and two dwelling- houses in the village of Gataučiai were renovated in 2007. UAB Fortum Švenčionių energija

UAB Fortum Švenčionių energija Vilniaus g. 16 a, LT-18123 Švenčionys Tel: 8 387 51593 Fax: 8 387 51762 [email protected] Association member since 2001. Vaclovas PAPINIGIS General Manager of Fortum Švenčionių energija

UAB Fortum Švenčionių energija was established on 6 February 2001. Its authorised There are currently two automated boiler houses operating in the town of Pabradė. capital is divided in equal portions (50% each) between the Council of the Švenčionys One of them has been built recently and contains new gas boilers produced by the District Municipality and UAB Fortum Heat Lietuva, the private equity company. The name Viessman firm, and the other one has been fully reconstructed. FORTUM is well-known in Europe and beyond; it definestheactivitydirectionsofFORTUM, Following the reconstruction of the district heating facilities, not only emissions of one of the largest energy companies in the Northern countries, which is engaged in the hazardous substances were eliminated, which is very important, but also technical losses generation and supply of heat and electricity in the majority of European countries. were reduced from 25.9% to 17.95%. In 2007, technical losses in the networks, excluding The main objectives of the company are as follows: hot water losses, accounted to 15.45%. Due to investments made into the district heating 1. Environmental protection. facilities, the heat prices were changing gradually. When the heating infrastructure as put 2. Safety at work. into operation in 2001, we have taken over from UAB Švenčionių šilumos tinklai the heat tariff 3. Price and quality of the service. approved for this company and applicable at that time, i.e. 14.77 ct/kWh, exclusive of VAT. 4. Customer relations. The National Control Commission for Prices and Energy approved the price of 5. Personnel. 18.62 ct/kWh, exclusive of VAT, for UAB Fortum Švenčionių energija for the winter heating 6. Profitability of the company’s activities. season during the 2000-2008 period, and this means that the price of heating increased All of the objectives listed above could be implemented only with the well-selected only 26.06% during the seven-year period as a result of well-planned and timely personnel and properly planned and timely investments. investments, though fuel prices soared from 160% to 300% during the same period. At the beginning of the company’s operations, there were two boiler houses in After the sales and prevention division had been strengthened, the customer the town of Švenčionys. In Švenčionėliai, we used to purchase heat energy from UAB debt for heating and hot water was significantly reduced and customer relations were Keramika. All of these boiler houses were using sulphurous fuel oil and produced around improved. The telephone survey of customers conducted by an independent company 80% of total district heat supplied in the district. The Švenčionys-based boiler houses concerning the quality of and customer satisfaction with the services provided by UAB alone would emit 80 tons of SO2 per year into the environment, excluding the emissions Fortum Švenčionių energija revealed positive assessments by the majority of both natural by UAB Keramika. There was one old boiler-house in Pabradė, and the other boiler house and legal persons. was operated by UAB Pabradės komunalinis ūkis. Depending on outdoor temperature, the company generates, on average, from The total amount of investments made into the heating infrastructure of Švenčionys 43,000 to 45,000 MWh of heat. Profitable sales to customers total, on average, from district during the seven-year period is LTL 15.8 million (exclusive of VAT). 36,000 MWh. The investments were mainly intended for the following purposes: During the past seven years, the amount of electricity consumed to produce 1 MWh 1. Repayment of the loan for UAB Šilumos tinklai decreased from 16.44 to 10.70 kWh/MWh, and contractual fuel expenses to produce 2. Construction of the Švenčionėliai boiler house 1 MWh dropped from 146.62 to 119.65 kg/MWh. 3. Construction of the Švenčionys boiler house In 2008, the company has introduced, obtained the licence and will apply the 4. Construction of Pabradė boiler house No. 5 management standards for Quality, Environment, Health and Safety, namely ISO 9001; 5. Reconstruction of Pabradė boiler house No. 7 ISO 14001; and OHSAS. 6. Building of heating pipeline routes in the town of Švenčionys During all these years, the company received a number of positive assessments of 7. Building of heating pipeline routes in the town of Švenčionėliai its work from various institutions; the letters of thanks were received from the Lithuanian 8. Building of heating pipeline routes in the town of Pabradė District Heating Association, the Švenčionys District Municipality, and the Vilnius County 9. Reconstruction of DH units in the town of Švenčionys Administration. 10. Reconstruction of DH units in the town of Švenčionėliai 11. Reconstruction of DH units in the town of Pabradė 12. Replacement of heat metering devices 13. Other equipment of boiler houses and networks, repair of premises. The plans are to make further investments in heat transmission pipeline routes and metering devices every year.

After all these investments had been made, SO2 emissions were completely eliminated. The town of Švenčionėliai has its own biofuel-firing boiler house, with a capacity of 4 MW. The town of Švenčionys also has its own biofuel-firing boiler house, with a capacity of 4.5 MW, which has very productive Finish wood-chip fired boilers with the coefficient of efficiency at 96%. UAB Giraitės vandenys

UAB Giraitės vandenys Topolių g. 5, LT-54310 Giraitė Kauno r. Tel: 8 37 32 81 28 Fax: 8 37 377253 [email protected]; www.giraitesvandenys.apie.lt Association member since 2007. Gitis URBELIS Director of UAB Giraitės vandenys

UAB Giraitės vandenys is the private limited liability company controlled by the Kaunas District Municipality, which holds all the shares in the company. The authorised capital of the company amounts to LTL 11,616,697. The average number of employees is 103. The company supplies heat for the purpose of heating premises and heating of drinking water to a temperature determined by the hygienic norms, supplies drinking water to customers, manages sewage, maintains heating and hot water systems of buildings, administers common properties of multi-apartment buildings, and performs other functions assigned by the Kaunas District Municipality. UAB Giraitės Vandenys supplies heat to the town of Babtai and villages of Sitkūnai, Karmėlava, Vandžiogala and Neveronys. The total quantity of heat sold from all boiler houses is 8,480 MWh; total number of customers – 961. The length of the heat transmission pipelines is 4.554 km. The total number of workers in the field of heating infrastructure is 25 people. Three Italian-produced Biasi boilers with a capacity of 1.86 MW are installed in the Babtai boiler house. The average coefficient of efficiency of these boilers is 0.85. The fuel used is fuel oil M-100. The heat transmission network consists of 3.05 km heating pipeline routes. From the total length of heating pipeline routes, 1.57 km of the pipeline consists of pre-insulated pipes and 1.47 km of the pipeline comprises pipes is 0.92. The boiler house uses natural gas as a fuel. The length of the heat transmission assembled in impervious channels. The total floor space of the heated premises in the pipeline is 779 m; it consists of pre-insulated pipes. The total floors space of the heated town is 22,248.6 m2. In the village of Sitkūnai, there are two small boiler houses fired premises in Vadžiogala is 5,731.09 m2. with liquefied gas containing Italian-produced KALARDTGF-8 boilers operating by the In the village of Neveronys, there are two boiler houses containing two KALARD- two multi-apartment buildings. The capacity of these boiler houses is 83.5 kW; the VR6 with a capacity of 103 kW and two KALARD-VGO boilers with a capacity of coefficient of efficiency is 0.92. There are no heat transmission pipelines in Sitkūnai. 90 kW each operating next to the two apartment buildings. The average coefficient The total floors space of the heated premises is 2,330.95 m2. of efficiency of these boilers is 0.93. The fuel used is natural gas. There are no heat The Italian-produced BIASI NTN-AR 2000 boilers with a capacity of 2.3 MW and transmission pipelines in Neveronys. The total floor space of the heated premises is BIASI NTN-AR 1300 boilers with a capacity of 1.5 MW are installed in the Karmėlava 1,094.79 m2. boiler house. The average coefficient of efficiency of these boilers is 0.92. The boiler Economic performance house uses natural gas as a fuel. The length of the heat transmission pipeline is In 2006, UAB Giraitės vandenys incurred losses totalling LTL 693,000, of which 725.15 m; it consists of pre-insulated pipes. The total floor space of the heated the loss from the sale of heat energy amounts to LTL 245,400. premises is 22,017.87 m2. The company’s income from the sale of district heat accounts for 45% of the There are two Italian-produced BIASI boilers with a capacity of 698 kW installed company’s total income. The long-term assets used in the heating infrastructure in the boiler house of Vadžiogala. The average coefficient of efficiency of these boilers accounts for 44% of the company’s total long-term assets. UAB Ignalinos šilumos tinklai

UAB Ignalinos šilumos tinklai Vasario 16-osios g. 41, LT-30112 Ignalina Tel: 8 386 52701 Fax: 8 386 52917 [email protected] Association member since 2001. Leonas CIJŪNĖLIS General Manager of UAB Ignalinos šilumos tinklai

The Ignalina heat networks were established in 1980 and were called the Joint The investment project for the upgrading of the heating infrastructure of the Authority of Boiler Houses and District Heating Networks of Ignalina. They were subordinate Vidiškės settlement was launched in 2001 and completed at the beginning of 2002. This to the kombinate (state-owned conglomerate) of utility companies. Later on, in 1984, project provided for the following three main directions of the upgrading of the heating they were transferred to the National Industrial Heat Supply Association (NIHSA). Then the infrastructure of the Vidiškės settlement, namely: NIHSA was reorganised into the company Šiluma. Along with the further reconstruction of 1. reconstruction of the boiler house by installing a wood waste-fired boiler; the district heating facilities, the state enterprise Šiluma terminates its activities in 1994, 2. reconstruction of DH units in the heated entities by dismantling hot water and the regional heat networks were divided according to districts. The Ignalina district pipelines; heating network became subordinate to SP AB Vilniaus šilumos tinklai in 1994. 3. reconstruction of heating pipeline routes. The private limited liability company UAB Ignalinos šilumos tinklai started its In 2002, upon the approval of the Ignalina District Municipality, a credit was independent operations on 19 August 2000 following the reorganisation of the special taken from UAB Naujoji šiluma. It was used for the reconstruction of the boiler house purpose public limited liability company AB Vilniaus šilumos tinklai. The company and the upgrading of DH units in the heated entities by dismantling hot water pipelines. currently employs 60 people. The company operates the boiler houses in the town of This project was implemented at the end of 2002, and since 2003 the main type of fuel Ignalina, the village of Dūkštas, and in the settlement of Vidiškės. in the Vidiškės boiler house has been wood chips and sawdust, i.e. local fuel. After the The main activity of the company is production and supply of heat and hot water. reconstruction of heat substations, heat losses dropped from 48% to 29%. The length of the pipelines is 19.8 km. Heat is supplied to 180 customers (buildings). In 2003, the fuel conversion from fuel oil to local fuel was carried out in the central 70% of generated heat is supplied to residential customers, and 30% is delivered to other boiler house of the town of Ignalina. Upon the approval of the municipality, a loan was customers. taken and UAB Kazlų Rūdos metalas installed boilers, with a capacity of 2.8 MW and In 1996, the Ignalina district heating network supplied heat to the towns of 4.5 MW. A new fuel storehouse and a chimney were built and all equipment necessary for Ignalina and Dūkštas and the settlement of Kaniūkai. Seeking to reduce expenses and the functioning of boilers was installed. Under this project, the transition of UAB Ignalinos losses, the non-profitable Kaniūkai boiler house was closed in 1997. In the same year, šilumos tinklai to the use of local fuel was completed. the investments totalling approximately LTL 700,000 were made in the reconstruction of Since 1 February 2008 the new base price for heating amounting to 14.61 ct/kWh Ignalina boiler house No. 2 and furnace fuel was replaced by fuel oil. has been applicable. A subsidy of 1.76 ct/kWh will be applied to residential customers. In 1998, a loan amounting to LTL 6.5 million was granted by the Swedish Energy After the majority of district heating companies have raised heating prices, the price Agency (STEM) and the project enabling in case of the closure of boiler houses No. 1 and applied to the residents of Ignalina is one of the lowest in Lithuania. No. 2 to supply heat from the central boiler house fired on local fuel, i.e. wood chips and The project “Implementation of Eco-Friendly Technologies for Heat Generation sawdust, was launched. and Smoke Cleaning in the Boiler House of UAB Ignalinos Šilumos Tinklai” was The boiler-house has all modern equipment: plate heaters, pumps, chemical water launched in 2007. During the implementation of this project, the hot water supply was treatment and iron elimination equipment, automation equipment, and electrical motors decentralised in the town of Ignalina, individual heat exchangers were installed, the with frequency changers. An automatic diesel 48 kW electrical station is installed and can hot water supply pipelines of 6.5 km were dismantled, and a 1.625 MWh condensate be used in case of a blackout. In addition, the partial reconstruction of the pre-insulated economizer, which will enable to reduce the costs of heat generation by 20%, will be pipeline was carried out, and the pipeline looping was completed in the central boiler installed in the central boiler house of Ignalina. The total value of the project is LTL house, boiler house No. 2, and boiler house No. 1. Two kilometres of hot water supply 4,949,700, exclusive of VAT. pipelines were dismantled. It should be emphasised that the initiator and supporter of almost all ideas related The central boiler house was put into operation in June 1999. It is fired on local to the reorganisation of the heating infrastructure in the district of Ignalina is Bronis Ropė, fuel, i.e. wood, and generates 26,000 MWh of heat. This accounts around 70% of the Mayor of the Municipality. This is natural because the Mayor has managed the City Council total quantity of heat. With a view to reducing the use of expensive light oil products, the for 18 years now. On his initiative, the central boiler house of Ignalina and the main heat Dūkštas boiler house was reconstructed and two wood-firedVŠK-31boilerswereinstalled transmission pipelines were built, the boiler houses were reconstructed, and the whole in 1999. A total of LTL 150,000 was invested and the return on investment was received infrastructure of the town has been developed. within a year. In 2005, UAB Ignalinos šilumos tinklai has marked its 25th anniversary. Our In February 2001, the reorganisation was carried out and the boiler house of the company has a small number of employees; however, their experience and professional Vidiškės settlement that uses only fuel oil was incorporated in this complex. Around skills enabled to stabilize the heat price, though growth in the district heating prices 700 tons of fuel oil was consumed in a year. In the summer of 2001, the boiler house was can be observed in other regions. The staff of UAB Ignalinos šilumos tinklai is ready to reconstructed and the wood-fired UT-500 boiler, which is used to prepare hot water and to prove that UAB Ignalinos šilumos tinklai is an important and promising district heating heat fuel oil, was installed. After this boiler had been installed, the fuel oil consumption in company, capable of supplying its customers with high-quality heat energy. this boiler house was reduced by 200 tons, replacing this quantity with local fuel – wood. UAB Izobara

UAB Izobara Linų g. 44, LT-20173 Ukmergė Tel: 8 340 60040 Fax: 8 340 60041 [email protected]; www.izobara.lt Association member since 2006. Raimondas KASELIS Director of District Heating Facilities of UAB Izobara

UAB Izobara was established on 13 January 1999. Although we have entered only in the ninth year of our operation, we can offer a great range of services intended for both private and business customers: designing; construction, reconstruction and renovation of buildings; interior and exterior finishing works; plumbing, sewerage, heating, cooling and air conditioning systems, electric and automation works; installation of boiler houses and heat supply systems; transmission of heat and steam energy; maintenance and operation of various engineering systems. UAB Izobara provides a wide array of design services: from designing of barrels to various technological system designs. The company currently has a team of eight qualified specialists. This allows ensuring that a qualified expert with extensive experience would be appointed for each field. The company performs various construction and engineering system installation works. A harmonious team of experienced managers and qualifiedspecialistsiscapable of dealing with different and the most complicated solutions by assuming all the risk related to the implementation of projects. All this combined with out designers’ input allow for satisfying any desire of the customer. One fieldofthecompany’sactivitiesisheatgenerationandsupplyforhousehold and industrial purposes. UAB Izobara currently supplies heat from 84 boiler houses with the total nominal capacity of 55 MW. In addition, we maintain and operate over 100 indoor heating systems (the total floor space of premises is 150,000 m2). Heat generation grows and the network of boiler houses is expanded every year. In 2002, the total quantity of heat sold was 12 GWh, whereas the total quantity of heat sold equalled 45 GWh in 2006. We can not only design and fit out a high-quality boiler house or the whole heating or steam generation system, but also do all this using our own funds, i.e. we install necessary equipment in the customer’s premises (if there is no suitable place for this purpose, we construct a building as well) using the company’s funds. A long-term energy supply and equipment buyout contract is concluded with the customer. The contract provides for a term of its validity or a quantity planned to be purchased, and after it has been purchased, the boiler house is transferred into the customer’s ownership. During the validity period of the contract, UAB Izobara assumes full responsibility related to the maintenance, operation and warranty service of the equipment. If necessary, the industrial personnel of UAB Izobara constantly maintains the boiler-house. At the end of the validity period of the contract, the fully operational equipment in a good technical condition suitable for further operation is transferred to the customer. Thus, the customer is offered the following advantages: • the customer can use funds necessary for the acquisition of boiler house or other equipment in its direct industrial activities, for meeting its working capital needs or for other purposes; • the customer does not need to ensure that the required licences are obtained, to train and certify a qualified personnel, or to maintain the boiler house. UAB Izobara assumes all risks related to possible equipment faults or other technology failures. The guarantees issued by insurance undertakings will keep our customers harmless of any possible loss. AB Jonavos šilumos tinkai

AB Jonavos šilumos tinklai Klaipėdos g. 8, LT-55169 Jonava Tel/fax: 8 349 52189 jst.centras@jonava.net

Association member since 1998 (the founder). Alfredas SADZEVIČIUS Director of AB Jonavos šilumos tinklai

The public limited liability company AB Jonavos šilumos tinklai was established on At the beginning of 2003, the company took over the boiler house of the Rukla 19 August 1997, following the reorganisation of AB Lietuvos energija. The owner of the settlement with hot and cold water supply systems. After the district heating facilities in company is the Council of the Jonava District Municipality. The company is run by Director Rukla had been taken over, the heat substations in the Rukla-based apartment buildings Alfredas Sadzevičius, who was awarded the badge of honour of the Lithuanian energy were renovated and the four-pipe hot water supply system was dismantled. sector in 2006. In 2004, the company started to maintain heating and hot water preparation Since 1998 the company has been a member of the Lithuanian District Heating systems of multi-apartment buildings. Residents of multi-apartment buildings and other Association. The company’s director is a member of the Council of this Association. The economic subjects who have concluded contracts are entitled to receive these services. company has been awarded for its stable operation and assimilation of EU structural In 2005, when support was received from the Lithuanian Environmental Investment funds. Fund, the Rukla boiler house was reconstructed by replacing the worn-out and inefficient The core activity of the company is steam and hot water supply. District heat is boilers with the new automated hot water heating boilers with condensate economizers supplied to heat customers in the town of Jonava and in the settlements of Rukla ir and modulating gas burners. Kuigaliai located in the district of Jonava. In 2006-2007, the support received from the EU structural funds was used to install The company operates the regional boiler houses in Jonava and Girelė, the boiler two 4 MW steam boilers in the regional boiler houses of Jonava and Girelė. The plans for houses in the settlements of Rukla and Kuigaliai, and five household boiler rooms fitted 2008 are to install a hot water heating boiler with a capacity of 10 MW in the Jonava out in the buildings that are not connected to the district heating network. regional boiler house. The total nominal capacity of technological facilities of the heating sources is Heat generated in these heating sources is transmitted via a hot water pipeline. At 160 MW. The main type of fuel used for heat generation is natural gas and straw. Fuel oil the end of 2007, the company maintained the heat transmission network of 64.1 km, and wood waste are used as a backup fuel. 40.6 km of which is the property of the company. The regional boiler houses of Jonava and Girelė are the main sources of district heat The sources for district heat generation and the heat transmission network in Jonava generation in the town of Jonava. Heat has been produced in the Jonava regional boiler were designed in anticipation of intensive growth of the industry and new residential house and supplied to the town since 1964, whereas the Girelė boiler house produced and areas of the town; however, upon the restoration of independence and formation of supplied heat since 1974. At the end of 2003, a complex of cogeneration plants started market relations in Lithuania, growth in the construction sector and industry stopped and to operate in the Jonava regional boiler house. This complex is used to produce heat by the demand for district heating started to decrease. As the projected production capacities way of natural gas combustion in the cogeneration facility. The complex consists of two are not exploited to the maximum extent, the maximum efficiency of the heat generation TEDOM cogeneration units. sources is not achieved, and the large throughput of the operated networks, compared In 1999, the heating facilities of the forestry settlement were reconstructed by to the demand for heat, caused significant heat losses in the transmission networks. fitting out automated household gas boilers in the DH units of dwelling-houses. Therefore, when the company received support from the Lithuanian Business Support A new automated natural gas-fired boiler house, with a capacity of 0.55 MW, Agency totalling LTL 1.125 million, it reconstructed 1 km of the heating pipeline route situated at Šilų street and supplying heat to the administration building of the railway between the upper and lower sections of the town by replacing the existing pipelines zone and several dwelling-houses was put into operation in 2000. with new optimal-diameter pipelines with good heat insulation meeting the customers’ In 2002, the company started to operate the straw-fired boiler house in the heating needs. settlement of Kuigaliai and its heating pipeline routes. On the basis of its long-year experience in the field of heat supply, AB Jonavos šilumos tinklai prepares and implements, on an on-going basis, new heat saving projects in all the units of its heat supply chain: it applies advanced technologies to improve the characteristics of heat generation sources and transmission pipeline routes, reconstructs and rehabilitates consumers’ DH units using state-of-the-art and the most cost-efficient heat-using facilities. Currently, the possibility of purchasing surplus heat from AB Achema by building a heat supply pipeline route to the Girelė regional boiler house is being considered. The company employs 100 people. 37% of our employees are with high or higher educational attainment, and 70% of them have been working in the company from its establishment. The highly-qualified personnel with extensive experience contributes significantly to the successful operations of the company thus ensuring stable and high- quality provision of services. AB Kauno energija

AB Kauno energija Raudondvario pl. 84, LT-47179 Kaunas Tel: 8 37 305650 Fax: 8 37 305622 [email protected]; www.kel.lt Association member since 1998 (the founder). Aleksandras Sigitas MATELIONIS General Manager of AB Kauno energija

The history of AB Kauno energija, the second largest district heating company in 8,258,479, of which support funds comprise LTL 3,791,865 and the remaining portion is Lithuania, began on 22 August 1997, when the special purpose public limited liability the company’s contribution. company was established on the basis of the branches of Lietuvos energija, namely The company operates the Pergalė boiler house (the first industrial boiler house Kaunas power station and Kauno šilumos tinklai. The shareholders of this company are in the city of Kaunas), the Šilkas boiler house (operates as a standby boiler house), the as follows: Kaunas City Municipality – 85.99%, Kaunas District Municipality – 8.14%, boiler houses in the district of Kaunas (Garliava, Noreikiškės, Raudondvaris, Neveronys, Jurbarkas District Municipality – 2.25%, and natural persons – 3.62%. At that time Domeikava, Girionys, Ežerėlis, Paliai), isolated boiler houses (14 boiler houses of medium (until 2001) the company consisted of the following branches: Kaunas power station, and low capacity situated in the blocks of Aleksotas, Šančiai and Panemunė, where the Kauno šilumos tinklai, Kauno energijos paslaugos, Jurbarko šilumos tinklai, Šakių district heating network has not been fully developed), and household boiler houses šilumos tinklai, and Naujasodžio energija. Most of these companies have a long history (minor heating sources with a capacity from 20 to 200 kW). The main type of fuel in these of their activities. heat generation sources is natural gas. Fuel oil ranks second; peat and sawdust are used as The Petrašiūnai power station operated by the company is one of the oldest well; biogas was started to be used in 2001. power stations in Lithuania. It started its operations on 11 November 1930. The main The history of the Kaunas power station dates back to 1975-1976, when the new generation facilities: 3 steam boilers, with a capacity of 75 t/h each, 1 gas turbine, 170 MWe Kaunas combined heat and power plant was constructed in the eastern part with electric capacity of 8 MW, installed for electricity generation and 2 heaters, with of the city. In 1997, the Kaunas power station was granted the status of a branch and it a capacity of 116 MW each, installed for hot water preparation. The fuel used is natural became the major heat and electricity generator in the city of Kaunas (it generated over gas and fuel oil. 90% of the total heat demand of the city). The Kauno šilumos tinklai company started its operations on the basis of the heating In 1994-1995, Šakių šilumos tinklai (established in 1983) and Jurbarko šilumos network unit set up by the Petrašiūnai power station in 1963. At that time, the company tinklai (established in 1984) were affiliated with Kauno šilumos tinklai. had 20 employees, operated an 8.18 km heat transmission network and supplied heat to Further developing its activities in 1997, the company established the branch for 120 customers. At present, the company operates 457 km of hot water pipelines, of which subsidiary activity – Naujasodžio energija. The core activities of the branch included peat 99 km are main pipelines and 358 km are area pipelines. extraction, insulation of district heating pipes with polyurethane, installation and repair of While maintaining the competitiveness of the heating infrastructure, the high pipelines and DH units, and spa hotel activities. quality and reliability of the service provided to customers and the possibility of connecting In 1998, the special purpose public limited liability company Kauno energetika new customers and implementing the company’s modernisation projects, the company owned by the Kaunas Municipality was affiliated to the company and became its completed to implement the project “Modernisation of the Kaunas District Heating branch – Kauno energijos paslaugos. In the same year, Jurbarko šilumos tinklai and Šakių System by Implementing State-of-the-Art Technologies” financed by the EU structural šilumos tinklai were separate by the branch Kauno šilumos tinklai by granting them the funds and the company in 2007. During the implementation of this project, the existing capacities of the company’s branches. technologically and morally worn-out pre-insulated pipes were replaced with industrially In 2000, the special purpose status was changed into the status of a public limited insulated steel pipes with a monitoring system. The value of this project amounts to LTL liability company. A year later, the branch Šakių šilumos tinklai was separate from the company and became an independent private limited liability company. At the end of 2000, the new priorities for the company’s activities were approved and the action programme called “the plan of measures that are being implemented or are to be implemented by Kauno energija to improve the financial condition of the company”was launched. The key priorities set in this programme were as follows: the new management structure of the company, exceptional attention to heat customers, preparation of the company’s long-term strategic plan, promotion of search for and use of internal resources, reduction of heat generation costs, work with the EU environmental, energy efficiency and other programmes, attention to quality management improvement, analysis and application of state-of-the-art technologies and experience, analysis and use of biofuel and other alternative types of fuel, etc. Upon the implementation of these measures, the company improved its financial condition but the company’s liabilities did not yet allow the company to receive loans on favourable conditions for circulating assets, to plan the company’s modernisation, or to implement strategic solutions related to the company’s further development. Additional measures were applied to improve the efficiency of operations and its financial condition. 17

In 2003, AB Kauno energija sold its division, the Kaunas power station, to UAB In 2007, the company installed the document management system which allows Kauno termofikacijos elektrinė established by the consortium led by the Russian gas giant for uniform recording and archiving of incoming documents, centralised storage and Gazprom and concluded a heat sales contract for 15 years with this company. distribution of original documents, control of deadlines set for document preparation In April 2005, UAB Naujasodžio energijos paslaugos and assets used in its operations (order execution), reduction of paper document movement, fast search for documents were acquired by the consortium comprised of the German peat extraction company and related information, etc. Klassman-Deilmann and the Lithuanian company City Plaza. One of the most successful projects is the joint project of the Kaunas City Municipality In 2004, the business and workplace optimisation study conducted in the company and AB Kauno energija together with the Swedish International Development Co- improved the company’s work organisation. The departments were established on the operation Agency (SIDA). The Swedish Government supported the demonstration project basis of the branches Kauno šilumos tinklai and Kauno energijos paslaugos, except for of the modernisation of the district heating system implemented in Kaunas by allocating Jurbarko šilumos tinklai, other divisions of the company were restructured, and non- SEK 6.8 million. Another SEK 3.2 million was allocated to institutional support. related processes were separated as well. Other successful projects are the following: In 2004, the company installed the sales accounting system in order to ensure - PHARE PPF project (2004-2005) – the company’s business plan “Assessment of faster customer service, to reduce customer inquiry response time, to install a common the Reliability of Efficient Energy Supply and Equipment Functioning and Preparation of accounting, control and information processing system and a common database, to Investment Projects”. streamline information entry into accounting books and records, to maximally automate - Project implemented under the TACIS CBC programme (2004-2005) together information processing, to shorten the period for conclusion/revision of contracts with with the Kaunas City Municipality, Modena Energy Agency (Italy) and Kaliningrad Energy customers, to ensure the correctness of information necessary for the calculations, etc. Agency, the common aim of which is to contribute to the reduction of air pollution from In 2005, the work was carried out to improve the quality of service provided to heat combustion by using energy more efficiently in these cities in the Baltic region; customers using information technologies. Conditions were created to submit reports on - Noreikiškės project (2005) – the biogas unit installed in the Noreikiškės boiler readings of heat metering devices via the Internet, thus simplifying the report submission house, which is the first cogeneration facility using biogas of this type installed in procedure and increasing the reliability of information receipt. All information receipt Lithuanian district heating companies; forms for the declaration of hot water consumption and other information submitted by - Preparation of methodologies for the assessment of the reliability of the heat customers were co-ordinated. The remote reading system for heat meters was further transmission network and initial reliability analysis of the main pipeline (Lithuanian developed, four remote reading systems for meters were connected, and the monitoring Energy Institute, 2006); of meters was conducted. - SENET project “Applying Corporate Social Responsibility (CSR) and Cross-Border Networking of Local Authorities and Energy Associations Towards Rational and Sustainable Energy Use in the Context of Enlarged EU” (2004-2006; - ESCOBALT project “Contribution of CSR to Building a Sustainable Energy Sector” (2004-2007); - Project “Sustainable Energy Systems in Advanced Cities” (2005-2009); - Feasibility Study on Municipal Waste Combustion in the City of Kaunas (2007); - In October 2007, the construction of the pipeline to the Jurbarkas boiler house was completed; the heat generation facilities of this boiler house started to use natural gas for heat generation; - Seeking to optimize the heat generation and supply process by maximally using renewable energy sources, to ensure reliable and safe heat supply by reducing pollution, and to meet the needs of Domeikava customers, AB Kauno energija intends to sign an agreement with UAB Ekoresursai regarding the use of biogas from the Lapės dumping ground for combined heat and power generation in 2008. The company participates in the activities of several associations. It is a member The software designed by the company’s programmers enables the centralised call of the Lithuanian District Heating Association, the Lithuanian Electricity Association, centre (CC) set up in November 2005 to provide advice on key questions that are of interest the Kaunas Regional Association of Industrialists and Employers, and the Lithuanian to customers: taxes, failures, provision of information, and contracts, thus enhancing the Bioenergy and Energy Saving Association. Furthermore, the company is a shareholder of efficiency of the company’s work. the Kaunas Regional Energy Agency. Other shareholders of this public institution include On 16 June 2006, the company’s board of directors approved the conclusion of the the Kaunas City Municipality, the Lithuanian Energy Institute, and the Kaunas University maintenance service agreement with UAB Energijos sistemų servisas, and since 4 July of Technology. 2006, UAB Energijos sistemų servisas has been providing the Petrašiūnai power station Solutions implemented by the company urge it to move forward. Being a socially maintenance service. responsible company that is open to the public, AB Kauno energija makes every effort to In the same year, the company’s board of directors decided to establish UAB Pastatų contribute to the country’s and the city’s prosperity – it fosters environmental awareness, priežiūros paslaugos on the basis of the Department of Kaunas Energy Services. This respects customers, cares about its employees (as of 1 November 2007, the number of the company maintains heating systems and heat consumption facilities of buildings, interior company’s employees was 620), and willingly co-operates, which encourages more new engineering networks and systems as well as construction structures and monitors these customers to choose AB Kauno energija as a reliable and promising heat supplier. facilities, systems, and constructions. AB Klaipėdos energija

AB Klaipėdos energija Danės g. 8, LT-92109 Klaipėda Tel: 8 46 410 850 Fax: 8 46 410 870 [email protected]; www.klenergija.lt Association member since 1998 (the founder). Vytautas VALUTIS General Manager of AB Klaipėdos energija

AB Klaipėdos energija, the largest energy producer in Western Lithuania, carries out its daily activities by delivering heat and hot water to the residents of Klaipėda and part of the residents in its district and generating electricity. The main ﬁeld of activities of AB Klaipėdos energija is generation, sale and distribution to customers of heat with hot water and steam, generation and sale of electricity, and the provision of services to heat customers by maintaining their indoor systems.

The rich history obliges The modern company AB Klaipėdos energija grew out of the coal-fired Klaipėda power plant built on the shore of the Danė River in 1929. It was designed and its construction was organised by the company EAG based in Frankfurt am Main. At that time, it was one of the most modern power plants in Lithuania, which has offered an opportunity to the residents to take advantage of the benefits provided by electric power and to the city’s industry to implement progressive technologies. However, the history determined its fate in a unique way. At the end of the Second World War, the power plant was bombed, its facilities were dismantled and removed. After the storm of war has passed, energy specialists from various Lithuanian cities and towns arrived to rebuild the destroyed power plant. Following the hard reconstruction work, the first turbines and steam boilers were put into operation and the country’s single seaport could receive energy they needed most. The sixth, the seventh and subsequent decades of the last century mark a new stage in the history of the company. A major focus was placed on district heating, industry, and residential housing. A great number of invisible underground pipelines were built throughout the city, the regional boiler house was constructed in Šilutė road, and the Lypkiai boiler house sprang up in the eastern part of the city. All heat generation sources 82% of heat customers in the seaport, including 29 industrial entities, 177 budgetary were connected into a common network. Along with industry growth in the region and organisations, and over 44,000 of household customers. The total heated area covers expansion of the city, ongoing development of district heating was identified as the main 4,367,425.43 m2. The company supplies heat to the town of Gargždai as well. The length objective of the company. of the main and area heat pipelines is 225.789 km. The respectable history of the company obliges us to keep up and to retain the AB Klaipėdos energija not only generates heat itself but also purchases it from other name of a modern company. In 2002, AB Klaipėdos energija became the first foreign independent producers, namely, UAB Geoterma, UAB Pramonės energija, AB Klaipėdos capital district heating company in Lithuania. Today, the shareholders of the company baldai, and UAB Izobara. include the German company Stadtwerke Leipzig GmbH (14.72%), the Finnish company In 2007, the company generated 901,000 MWh of heat and supplied 1,015,000 MWh Fortum Heat Lietuva (4.90%), and E energija holding 4.43% of its authorised capital. A of heat into the network, and the quantity of heat sold was 873,000 MWh. In addition, 19% stake in the company is held by the Klaipėda City Municipality, and the remaining 20,000 MWh of heat, which the company generated in the combined heat and power shares are held by private shareholders. plant in Klaipėda and in the boiler house of Gargždai heat network, was sold. Since 2003 AB Klaipėdos energija has been seeking Heat is supplied to customers from the power plant, 2 regional, 5 block and compliance with international standards. In 2006, the 14 local boiler houses which use natural gas. Fuel oil is used in the large boiler houses company became the first heat generation and supply only in case of emergency. For a number of years, due to purposeful investments into company, which implemented the integrated quality the modernisation of the district heating facilities, successful engineering solutions and and environmental management system according to LST EN ISO 9001:2001 and LST EN rational management of the heating infrastructure, heat had been supplied to customers ISO 14001:2005 standards. in Klaipėda at the price that was among the lowest in Lithuania. However, as a result of the increase in oil prices, fuel costs grew in 2007. As the share of gas accounts for 50% in the The company today cost price of heat, as gas becomes more expensive, the price for one kilowatt hour of heat At present, Klaipėdos energija is the largest energy producer in Western Lithuania will inevitable rise. The company searches for various measures and internal resources and the major energy supplier in Klaipėda. The company provides heat to approx. to reduce the heat price. However, the efforts of the company are not enough. In order 19 to mitigate the effect of rising district heat prices on the growth of customers’ heating bills, it is necessary to increase the energy efficiency of dwelling-houses, to improve the management and maintenance of multi-apartment buildings, and to renovate and modernize such buildings. The renovation of obsolete buildings is the main method to reduce growing heating expenses for customers. Heat consumption in these buildings is twofold higher than the same rate in the Scandinavian countries and 1.75 times higher than in newly built multi-apartment buildings in Lithuania. The company has presented proposals regarding the complex modernisation of building groups (blocks), including the upgrading of the engineering and social infrastructure of these blocks, the establishment of optimal multi-apartment building groups for modernisation, and the order of priority for modernisation. Part of the proposed measures are included into the strategic business plan for 2007-2009 and the strategic development plant for the city of Klaipėda. On 17-19 May 2006, the delegation from the Gdansk-based district heating company visited AB Klaipėdos energija. Investment activities and implemented projects At the end of October 2007, AB Klaipėdos energija completed the implementation of 5,996,466, the amount of EU Structural Funds support totals LTL 2,542,400. the project“Renovation of the District Heating System in the City of Klaipėda by Implementing The construction and installation works have been already carried out for the Modern Technologies” financed by the EU structural funds and the company. amount of LTL 2.5 million. In 2006-2007, the company reconstructed 9.8 km of the heating pipeline routes in AB Klaipėdos energija is currently preparing a new project “Modernisation of the Klaipėda by renovating the 25-30 year old pipelines. This project was aimed at reducing District Heating System by Increasing Its Efficiency in the City of Klaipėda”.The total value heat losses and ensuring the reliability of heat supply. of the project is set at up to LTL 4 million. An application for support totalling LTL 2 million In 2006, 5.7 km of pipelines was renovated for a total of LTL 8 million, whereas to implement the project will be submitted to the EU Structural Funds. Another LTL in 2007 4.1 km of pipelines were renovated for LTL 6.75 million. The total value of the 2 million will be used for the connection of new heat customers to the existing network. project “Renovation of the District Heating System in the City of Klaipėda by Implementing Besides its daily operations, the company places great emphasis on investments. Modern Technologies” amounts to LTL 17.3 million, of which LTL 7.3 million was the AB Klaipėdos energija develops its investment activities in the following three directions: support of the European Regional Development Fund. This makes up 50% of the project. new, efficient and modern boilers producing less pollution are installed; the worn-out The company itself invested the same amount. During the recent years, heat losses in hot water pipelines are rebuilt, new pipeline routes are built, and new heat customers the heating pipeline routes were reduced from 16.2% (169,282 MWh) in 2005 to 13.8% are connected; the plans are to build a new efficient combined heat and power plant (139,866 MWh) in 2007. generating both heat and electricity and using municipal waste, biofuel and other In the spring of 2007, AB Klaipėdos energija launched the project “Rehabilitation local fuel. The company’s investment activities must comply with the National Energy of the Energy Sector Aimed at Increasing Efficiency in the Use of Energy Resources and Strategy, which provides for the development of the district heating sector in such a Reducing a Negative Environmental Impact – AB Klaipėdos Energija”. The plans under the way that reliable and high-quality heat supply would be ensured to customers at the project are to install two new and completely automated steam boilers with a capacity lowest cost, enhancement of efficiency in heat generation and transmission, wider use of 10 t/h and to restructure the steam supply system in the Lypkiai regional boiler of local fuel and biofuel, and reduction of the environmental impact of heating. Every house situated next to the Klaipėda Free Economic Zone (FEZ) by July 2008. Following year the company allocates funds for the reconstruction and construction of new district the upgrading of the energy facilities of the Lypkiai regional boiler house, steam will be heating pipelines, the upgrading of heating systems and automated DH units, and the used for the company’s own purposes and supplied to the existing customers and to the replacement of equipment of the heat generation sources. Active investment activities are new customer – UAB Mestilla biofuel plant. The total value of the project amounts to LTL projected for the 2008-2012 period as well. UAB Kaišiadorių šiluma

UAB Kaišiadorių šiluma J. Basanavičiaus g. 42, LT-56135 Kaišiadorys Tel/fax: 8 346 51139 [email protected]; www.kaisiluma.lt

Association member since 2001. Arvydas JUREVIČIUS Director of UAB Kaišiadorių šiluma

On 1 August 1976, boiler houses were separated from the Centre of Public Utilities efforts heat transmission losses during the decade were reduced almost by 1.5 times. and Kaišiadorys Poultry Enterprise to set up an autonomous subdivision – the Board of Overall length of hot water networks keeps reducing and pipelines being erected as a rule Joint Boiler Houses and Heat Networks. At that time the boiler house of Kaišiadorys town are of smaller diameter and are provided with better insulation. had 2 fuel oil steam boilers and 6.75 km length heating networks and employed 34 staff. In 2006, the Company started generating electric energy for its own needs. A In 1978, the boiler house of Kaišiadorys town started burning natural gas. As a result of combined heat and power generation plant of 50 kW electric capacity and 97 kW hot growing demand for heat facilities of higher capacity were acquired. In 1980 the third steam power was erected. boiler DKVR 10-13 was installed and put into operation in the boiler house. As from 1984, Great perspectives are forecasted for biofuel use. UAB Kaišiadorių šiluma supplies the Company became subordinate to the National District Heating Association. In 1985, heat to 5,805 residents and 65 enterprises, institutions and organisations. As UAB it merged with the boiler house of Rumšiškės settlement. In 1987, 23MW water heating Kaišiadorių šiluma uses natural gas for heat generation, it is directly dependent upon boiler was erected in the boiler house of Kaišiadorys. The Company changed its name – in changes in natural gas prices; therefore, considering the perspective of its activities in the 1988 it was designated as the Industrial Association Šiluma, in 1990 – the State Enterprise context of sustainable development the Company is looking for the possibilities of more Šiluma. In 1994, the Company was merged with a very obsolete boiler house of Gudiena efficient use of alternative energy resources. settlement. Having changed its subordination and name for several times as specified In 2006, the Company received support of LTL 2.19 million from EU Structural Funds above in 1994 the Company became a subdivision of Vilniaus šilumos tinklai, and in 2000 it for the implementation of the Project of upgrading of UAB Kaišiadorių šiluma boiler house was separated and transferred to the Municipality of Kaišiadorys District. In the same year a and adapting it for use of local and renewable types of fuel. By July 2008, a biofuel boiler SP UAB Kaišiadorių šiluma was set up. In 2001, having also merged the Company with the station of 5 MW capacity will be erected in Kaišiadorys, in the territory of UAB Kaišiadorių companies SP UAB Stasiūnų šiluma and SP UAB Žiežmarių vandenys ir šiluma the volume šiluma, where hot energy will be generated burning wood chip and other local fuel of works and authorised capital of the Company increased. With a view to reducing network – biofuel. A biofuel warehouse, fuel feed system, a new stack and biofuel burning boiler heat losses in 1998-2001 collective boiler rooms were liquidated. will be erected in the territory of the existing boiler house. The possibility to use local In 2003, the Company registered its name UAB Kaišiadorių šiluma. The principal fuel for heat generation will reduce the Company’s dependence upon imported fossil shareholder is the Municipality of Kaišiadorys District holding 99.9% of shares. fuel. Upgrading of heat generation equipment will increase reliable performance of the At present heat energy generated by this Company is supplied to consumers of boiler house. The use of diversified types of fuel will facilitate a more flexible adaptation to Kaišiadorys and Žiežmariai towns, Rumšiškės and Stasiūnai settlements and Gudiena potential fuel market changes, employment of cheaper local fuel will allow guaranteeing school-kindergarten Rugelis. The Company services 15 boiler houses of which 14 burn heat supply to consumers reducing potential costs to the minimum. Implementation of natural gas and 1 – biofuel. Total installed boiler house capacity – 53.7 MW. this project is necessary in order to achieve long-term strategic goals of the Company – to In 2006, the works of converting DKVR 10-13 boiler of Kaišiadorys Town boiler house be the most economically attractive and cheapest heat supplier in the district. to water heating mode were completed. Total hot input of the boiler with a new burner is 7 About 42,000 MWh annual heat demand of Kaišiadorys Town heat consumers MW. This boiler is the third last DKVR-type boiler in the boiler house of the town converted will be satisfied burning about 15,000 true cubic metres of wood and about 1,975 m3 of for operation from steam generation to more cost-efficient water heating mode. natural gas. Replacement of natural gas with biofuel will reduce emissions of pollutants The length of networks operated at present is 16.6 km. For heat transmission into the atmosphere. networks management purposes UAB Kaišiadorių šiluma firstly decentralised group After decommissioning of Ignalina Nuclear Power Plant in 2009, Lithuania will heat substations (liquidated hot water pipeline routes and their losses), replaced and is be left without the facility generating cheap electric energy. Construction of one more replacing warn pipelines with new pipes, removed part of the pipeline, decentralised heat co-generation plant of 50 kW electric capacity and 97 kW thermal power is planned in preparation in certain locations and installed heat meters in buildings. Thanks to these the boiler house of Kaišiadorys town in order to provide itself with locally generated and considerably cheaper electric energy. Mission of the Company: - using EU structural aid in effective and transparent manner through upgrading, modernisation and development of the Company; - increasing thermal energy consumption efficiency and competitiveness with minimum environmental impact. - maintaining attractive and stable selling prices offered to consumers. On 1 August 2006, UAB Kaišiadorių šiluma celebrated the 30-ieth anniversary of its activities. In the same year the Company was recognised as the most popular company of Voruček Vit (on the left) and Haki Jiržli, specialists of the Czech Firm TEDOM perform non-private capital in Kaišiadorys District and was awarded a diploma of the Municipality the works of commissioning-adjustment of facilities. of Kaišiadorys District. UAB Lazdijų šiluma

LŠ UŽDAROJI AKCINĖ BENDROVĖ UAB Lazdijų šiluma LAZDIJŲ ŠILUMA Gėlyno g. 10, LT-67129 Lazdijai Tel: 8 318 51839 Fax: 8 318 51787 [email protected] Association member since 1998 (the founder). Gintautas TULABA Director of UAB Lazdijų šiluma

The Company’s history started twenty-seven years ago in November 1981, when a systems were modernised. However, when the price of fuel oil started growing, economic newly constructed regional boiler house of Lazdijai began supplying heat to the Central and financial condition of the Company began to deteriorate rapidly and with a view to Hospital of Lazdijai under construction. From the establishment of the first boiler house stabilizing it the decision was taken to give up fuel oil and begin using fuel wood. In until present the Company’s name and subordination changed more than once. The first 2002 the upgrading of boiler houses was completed: two KV-Rm-3 water heating boilers workers of the boiler station were recruited to work at the Centre of Public Utilities of burning wood chips were mounted in Lazdijai boiler house and one such boiler – in Veisiejai Lazdijai which at that time was tasked with construction of a new boiler station. And only boiler house. The Prezident of the Republic of Lithuania Valdas Adamkus participated in a few months later, on 2 January 1998, a new entity – the Board of Joint Boiler Houses the ceremony of putting into operation new boilers on 17 April 2002. Alongside boilers and Heat Networks was set up which belonged to the same Centre of Public Utilities of new storage facilities for wood in chips, automated fuel feed systems, reserve liquid fuel Lazdijai. This dependence existed until 1 January 1984, when during reorganisation the sectors were constructed, two tractor-loaders, a log truck and wood shredding machine Company was merged with the National Industrial Association of Hot Energy Suppliers were acquired. This reconstruction enabled the Company to reduce its costs almost by LTL set up in Vilnius. At that time this Association united already the great majority of similar 1 million. In 2003, after erection of new boilers in Radvilų street boiler house instead of district heating companies existing in Lithuania. Only heat networks of large towns did liquid fuel it started burning wood. At present all boiler houses of the Company burn only not belong to this Association. During the decade of existence of this structure the names wood fuel. of both enterprises changed several times. On 1 October 1998, the joint venture was Seeking to further improve the company’s cost-efficiency and reliability, the renamed into the Industrial Association Šiluma and all companies which belonged to it winding up of group heat substations and modernisation of heat networks was started. were incorporated in district heat networks or were able to start operating autonomously. In 2004 the following upgrading works were completed in Veisiejai heat consuming Our Company became subordinate to the heat networks of Alytus. It should be noted that equipment: construction of 300 metres of new pre-insulated heating pipelines and this organisation was useful to our Company and actually was a right step. Experience erection of 26 automated heating stations. As a result 800 metres of old and loss-making of the larger company in operating different boiler houses was conducive to upgrading heating networks and 1,367 metres of hot water pipelines were liquidated. As a result of operations of Lazdijai and Veisiejai boiler houses, improving certain heat generation such upgrading heat network losses were reduced by 880 MWh. processes and handling of documents. In August 1997, when Lazdijai District Municipality In 2007 three group heat substations were liquidated, 8 automated heat substations expressed its intention to take over the management of heat supply into its hands, an were erected, and hot water networks reduced by 200 metres in Lazdijai. The remaining independent company – a special purpose Joint-stock Company Lazdijų šilumos tinklai two collective hot water boiler stations will be liquidated in 2008. After erection of was set up with Lazdijai District Municipality as its principal shareholder. In March 2003 another 7 automated autonomous heating stations the remaining hot water networks the Company was reorganised once again and after the reorganisation the Company UAB will be liquidated. UAB Lazdijų šiluma was set up. Heat networks upgrading works were commenced in 2007. In December 2006 the At the very outset of its activities our Company has only one boiler house equipped agreement on aid was signed according to which UAB Lazdijų šiluma will receive aid of with two DKVR 6.5-13 boilers burning fuel oil. Later the number of boiler houses changed almost LTL 3.6 million from the EU Structural Funds for the purpose of these works. The several times. There were periods when their numbers increased as a result of transfer total price of the works is LTL 6.7 million to be used for replacement of 5.879 field heating of boiler houses belonging to other organisations, or reduced upon their liquidation in networks: 4,901 m – in Lazdijai and 978 – in Veisiejai. Together with pipelines the closing the process of development of centralised DH networks. In 1982 our Company had seven fittings will be replaced and trauble control system will be installed. The upgrading of boiler houses – the largest number throughout the period of its existence. Between 1982 pipelines was commenced in autumn 2007 and by year-end 1,270 m of new pipelines and 1987 all small boiler houses were liquidated. Heat generation as well as workforce and 38 new valves were installed. The modernisation project will be fully completed in numbers increased considerably when in 1990 a new large boiler house in Veisiejai was September 2008. After implementation of this project heat losses in field heat networks transferred to the Company. Two steam boilers DE-16 were mounted in this boiler house will reduce by 1,548 MWh. With a view to increasing reliability of heat supply, the looping and it supplied heat to the new agricultural school, district construction organisation and of district heat networks of Lazdijai town is envisaged for this year. To this end 300 metres block of residential buildings. heat networks of 273 diameter will be installed. At present our Company has three boiler houses. In addition to Lazdijai and Veisiejai Upon completion of these large-scale projects the Company is planning to district boiler houses there is also a small Radvilų street boiler house in Veisiejai with two continue modernisation of separate heat sector systems: to computerise collection and U-150 and U-70 wood burning water heating boilers. analysis of operating parameters of boiler house installations, automatize consumer heat Heat in Lazdijai ad Veisiejai is supplied to the total of 1,050 flats and 83 residential stations, heat and hot water systems, install emote accounting data collection systems and public buildings. The Company operates 9 km length hot heat networks. from heating and hot water meters of consumers. All these measures will facilitate in When in 1997 the Company started operating autonomously measures were taken improving future cost-effectiveness and efficiency of hot energy generation and supply to to upgrade the heat sector systems. Frequency exchangers were mounted for electric consumers, and upgrading thermal energy accounting and heat consumption equipment engines in boiler houses, old and unreliable control devices were replaced and automated maintenance quality. UAB Litesko

UAB Litesko Jočionių g. 13, LT-02300 Vilnius Tel: 8 5 2667500 Fax: 8 5 2667510 [email protected]; www.litesko.lt Association member since 2000. Jean SACRESTE General Manager of UAB Litesko

Litesko – warm buildings in nine towns of Lithuania networks while the ownership of this sector as of the object of infrastructure is retained Nine towns and even 60,000 of flats are provided with ditrict heating. This is the by the municipality. Upon expiration of lease term municipalities will take into their territory of activities of the district heating company Litesko. The Company being the first possession the upgraded and profitably operating heat sector instead of loss-making heat in Lithuania to adapt in practice the progressive heat sector lease model is investing into sector which needed continuous financing. renovation of the district heat supply systems of the country. Investments of the Company have reached LTL 167 million. Attention to service quality Total investments of Litesko into the heat sector of Lithuania from 1998 until present Mission pursued by Litesko is to provide quality services conforming to the already amount to LTL 167.4 million. The company engages in district supply of heat and European Union standards for the fixed price and with minimum costs and to protect hot water to residents of Alytus, Marijampolė, Druskininkai, Palanga, Telšiai, Vilkaviškis, the environment surrounding us. The Company keeps improving its customer servicing Biržai, Kelmė and Kazlų rūda. system and considering the customer needs aims at guaranteeing maximum servicing Actively investing in these towns Litesko constructed about 66,278 kilometres of quality. new heating pipeline routes and replaced the great majority of old heat stations in multi- Litesko district heating companies operating throughout Lithuania takes all effort dwelling buildings with modern automatized equipment. Having leased urban district to reduce to the minimum the growth rates of energy prices as natural gas prices keep DH systems Litesko modernised heat systems concurrently reducing financial obligations growing. Energy specialists admit that attempts of district heating companies to save of the heat sectors. costs often disappear through the walls of old multi-dwelling buildings full of holes. Towns and townships serviced by Litesko have about 253,000 residents. More The Company is proactive seeking to familiarise its customers with the benefits than 80% of these residents use thermal energy supplied by the Company and hot water of renovation of multi-dwelling buildings and encourages residents to begin using preparation service provided by it. About 70% of heat supplied by Litesko is consumed for energy in efficient manner in their dwellings. According to surveys conducted by energy heating of residential buildings. The remaining part of heat generated by the Company is specialists thermal energy consumption in buildings of old construction with poor heating use to heat premises of various institutions, organisations and companies. materials by 2-3 times and in some buildings even up to 10 times exceeds thermal In Lithuania Litesko adapted public and private actors’ cooperation model popular energy consumption in new multi-dwelling buildings saving energy. Litesko invites in the Western Europe – the heat sector leasing scheme. This scheme outpaces other heat representatives of housing cooperatives to get familiarised in practice with experience in sector modernisation methods because it uses private funds for renovation of heating the area of renovation of buildings in the neighbouring Republic of Poland organising

Beginning of construction of 9 MWe turbo generator in Litesko branch Alytaus energija in 2005. 23 excursions to Poland which is famous for its eﬀective renovation solutions and where more than half of old multi-dwelling buildings have already been renovated.

In future – biofuel boiler houses Litesko generates thermal energy in 63 boiler houses with their total capacity amounting to 1,251 MW. Considering drastic growth of prices for natural gas imported from Russia, the Company pays great attention to biofuel – construction of boiler houses burning local fuel. A few years ago Litesko launched the first in Lithuania co-generation power plant burning biofuel in Marijampolė and adapted it for burning different types of biofuel. Meanwhile this is the largest biofuel project of Litesko which required investments of LTL 11 million. Capacity of Marijampolė biofuel steam boiler is 16 MW and that of steam turbine – 2.5 MW. After implementation of this project by the Company renewable energy sources account for more than 20% of the total fuel balance in Marijampolė. In addition, cogeneration of heat and energy is implemented by Litesko in Alytaus šilumos ūkis. Litesko takes all effort to increase the use of local renewable energy sources and to reduce Lithuania’s dependence upon the only supplier of natural gas – the Russian Company Gazprom. Modern biofuel burning boiler houses are also operating in Kelmė, Vilkaviškis, Palanga, Telšiai, Biržai, Kazlų Rūda, Kybartai, Nemunėlio Radviliškis and Leipalingis supplied with heat by Litesko. The Company is also planning to start burning local fuel in the boiler house of Alytus town.

Participates in community life Litesko providing with heat nine towns of Lithuania does not conﬁne itself to generation and supply of thermal energy. The Company seeks integration into the life of cities in which it operates. The Company regularly allocates funds for cultural life of cities serviced by it and is a proactive sponsor of diﬀerent events. Litesko belongs to Dalkia Collective of Europe’s leading energy service companies which is one of the few energy companies of the Western Europe holding interest in the UAB Litesko employees during the event on the occasion of the Energy Specialists’ energy companies of Lithuania. In Vilnius Dalkia Company is represented by the Company Day organised in April 2004. Vilniaus energija. UAB Mažeikių šilumos tinklai

UAB Mažeikių šilumos tinklai Montuotojų g.10, LT-89101 Mažeikiai Tel: 8 443 98171 Fax: 8 443 98193 [email protected]; www.mst.lt Association member since 1999. Jonas JURKUS Director of UAB Mažeikių šilumos tinklai

Until 1974 the Electrotechnogy Factory (ETF) of Mažeikiai located in Reivyčiai Control of boilers in thee boiler house is computerised which guarantees operating block provided heating with its own facilities. When the settlement was expanded, the and occupational safety of equipment and people. locomotive started supplying heat. After construction of several buildings in the Old Town The prolonged discussions finally resulted in the ceremony of solemn lighting of the of Mažeikiai a block boiler house was constructed in the yard between Stoties and Vileišio natural gas torch in Mažeikiai. streets which supplied with heat the cinema theatre, the shopping centre and buildings in The major part of the Company’s assets lies underground (more than 42 km of heating the present Vasario 16-osios street. The buildings of microdistrict were supplied with heat routes in the town). Therefore, the pipelines are repaired and replaced every year according and hot water by the Mažeikiai compressors factory. The buildings in Sodų and Žemaitijos to financial possibilities of the Company. At present about 11 km of heating pipeline routes streets were provided with heat from the provisional boiler house of the construction trust are already replaced by modern pipes. Heat losses reduced from 30 to 15.7%. Given poor set up in the neighbourhood of the building located in Sodų st. 2/15. condition of underground thermal networks and the absence of possibility to replace all After construction of Mažeikiai boiler house in 1974 and of the main heating pipeline warn heat supply pipelines 24 heat network pressure control sensors were installed to route the buildings of the microdistrict were connected to the new boiler house. In 1975 ensure sustainable supply of heat. Sensors facilitate operative detection of the place of Mažeikiai boiler house and heat networks were taken over from oil refinery by Šiauliai breakage and reduce the time of counter-measures. Rėkyvos VRE (state regional power plant) which later was reorganised and became Šiaulių The Company services about 14,000 of subscribers. The number of new consumers šilumos tinklai and our Company – Service No. 4 of Šiaulių šilumos tinklai Boiler Sector). willing to use heat provided by the Company keeps growing year-on-year. A special purpose joint-sock company Mažeikių šilumos tinklai was set up on 1 July In addition, the Company renovated water preparation sector and reduced water 1997. Later, in 2003, the Company changed its status to UAB Mažeikių šilumos tinklai. consumption almost thrice. Old water preparation filters dismantled in the Chemicals The principal shareholder of the Company is Mažeikiai District Municipality holding Department were used as reserve contained for keeping water. 99.9% of all shares of the Company. Having installed network and recirculation networks frequency exchangers, the In 2001, 2 fuel oil boilers in the boiler house of Reivyčiai were replaced by biofuel- Company succeeded in reducing energy demand by 15%. The investment was made burning boilers. Mažeikiai boiler house was modernised in 2002. The central boiler house having received a subsidy from the Swedish National Energy Agency (SIDA). was extended and one biofuel boiler of 10 MW with fuel storage facilities and other Thanks to the implementation of all these measures, at present boiler houses of UAB ancillary equipment were installed. Mažeikių šilumos tinklai today conform to the EU standards and requirements established In 2003, a 12 MW capacity bio-boiler was erected in place of dismantled old steam for the best heat generation method. boiler. At present about 60% of all heat is generated using biofuel, which facilitates in In 2007, UAB Mažeikių šilumos tinklai was awarded the nomination of the “Most maintaining one of the lowest heat prices in Lithuania. The most important thing is that Modern Company” during the Business Day Holiday hosted in Mažeikiai. burning biofuel limits environmental pollution which in its turn reduces pollution taxes and Between 1998 and 2004 the heat price was 13.73 ct/kWh. As a result of timely generates income from unused negotiable pollution permits. These permits can be sold to modernisation of boiler houses and having started to use biofuel the heat price of the other companies using received funds for modernisation of production. Company remained among the lowest heat prices in Lithuania even for 3 years, i.e. The Company spent over LTL 3 million for installation of the condensing heat 12.50 ct/kWh. By the way, now heat price is 14.84 ct/kWh and still is among the lowest exchanger which was put into operation on 19 May 2006. Part of funds was allocated by heat prices in the country. the Lithuanian Environmental Investment Fund and the remaining funds – by Mažeikiai The Company particularly values experienced employees with long record of service in District Municipality. the Company while concurrently trying to attract young and talented specialists. Employees In 2007, the Company repaired 2 fuel oil burning water heating boilers which were are provided with all conditions necessary for continuing studies in higher educational replaced by gas-burning water heating boiler of Cochran firm. The second gas-burning establishments and universities while remaining in service for the Company. boiler will be erected in stage two. The Company participated in the tender for the Project on Measures Preventing Erection of these two gas-burning boilers will be completed when the Company Accidents at Work and Occupational diseases and was granted the amount of LTL 100,000 receives support of LTL 3.3 million from the EU Structural Funds. for installation of new and modern amenities for employees of the Company. The Company is actively involved in community life of Mažeikiai town providing financing for town holidays, participating in miscellaneous events and developing its own traditions. The most distinguished employees are awarded during the Energy Specialists’ Day – a professional holiday of specialists employed in energy sector which is commemorated every year. The Prime Minister of the Republic of Lithuania G. Kirkilas, the Minister of Economy V. Navickas, the Ministry of Transport and Communications A. Butkevičius, his assistant and Mažeikiai District Council member D. Jarmantavičius were interested in the condensing exchanger. UAB Molėtų šiluma

UAB Molėtų šiluma Mechanizatorių g. 7, LT-33114 Molėtai Tel: 8 383 51962 Fax: 8 383 51698 [email protected] Association member since 2004. Juozas KULIEŠIUS Director of UAB Molėtų šiluma

The principal economic activity of the Company is generation and supply of heat and At present a collegiate managerial body of the Company is the Company’s Board hot water. Establishment, construction and development of our Company took place on the consisting of 3 members: Head of Giedraičiai Neighbourhood Vytautas Valansevičius, District base of the boiler house of the former industrial association Lietuvos žemės ūkio technika. Municipal Administration Property Division Head Irena Stumbrienė, and senior specialist of Between 1988 and 1989 the Company completed construction works of heat supply Construction and Public Utilities and Ecologgical Affairs Division of the District Municipality networks were completed, erected collective boiler rooms for preparation of hot water and Zenonas Nariūnas. Ona Repečkienė is the principal accountant of the Company. hot water supply pipelines and also closed down the last boiler stations which remained At present the Company supplies with centralised heat and hot water 1,768 flats of out of 50 coal-burning boiler houses which operated in Moletai town at that time. residents and 39 institutions and organisations. The total heated area covers 145,220 m2 The establishment of the Company began on 31 May 2000 after reorganisation including 91,799 m2 of residential premises. In 2007 the Company had 43 employees of of a special purpose Joint-stoick Company SP AB Vilniaus šilumos tinklai. The statutory whom 8 are boiler operators working according to fixed-termemploymentcontractsduring meeting of shareholders during which the Board was elected, was convoked on 19 July heating season in boiler houses of Giedraičiai township and Naujasodis settlement. 2000. Saulius Jauneika, Molėtai Branch Manager of the bank AB Lietuvos žemės ūkio The boiler house of Molėtai town is equipped with three DKVR-6.5 fuel oil boilers bankas was appointed the first Board Chairman; Antanas Sauliūnas was appointed the (1 steam and 2 water heating boilers) and 2 bio-boilers. Biofuel is used in 4 MW capacity Company’s Director, and since October 2000 the Company’s Director is Juozas Kuliešius. boiler GBV-11 of the Danish firm which was one of the first boilers erected in Lithuania in During the general meeting of shareholders organised on 14 April 2003 the Company’s 1994 and 5 MW capacity boiler of AB Kazlų Rūdos Metalas put into operation in November status was changed and it was renamed to UAB Molėtų šiluma. 2001. Total project capacity of the central boiler house is 24 MW. The Company’s owners are 15 shareholders comprising 14 natural persons and The Company generates and supplies heat not only to the town of Molėtai, but also 1 legal person – the District Municipal Council possessing a block of shares of 99.99%. to the inhabitants of Giedraičiai township and Naujasodis settlement and to schools and The product generated by the Company – the heat is sold for 14.59 ct/kWh. This kindergartens of these areas. Giedraičiai boiler house has 2 universal 1.25 and 0.6 MW heat price was approved by the State Prices and Energy Control Commission and applies capacity boilers burning fuel wood. Two boilers burning fuel wood of 0.25 MW capacity until 1 July 2007. each are erected in the boiler house of Naujasodis settlement. Thermal water networks are of 13.5 m length, and hot water supply network system was liquidated. Heat in Molėtai town is supplied via the 2-pipe system. Hot water is prepared in the individual heat exchangers at heat substations of buildings. The Company annually generates and sells about 27-28 GWh of thermal energy. Average heat losses account for 15-16%. The Company succeeded in reducing heat losses by about 10% after closure in 2006 of collective hot water preparation boiler rooms and hot water pipeline routes, reconstruction of thermal water routes, replacement of about 50% of warn networks by new pipelines laid according to a new method without channels. Considerable attention in the Company is paid to further increasing the efficiency of heat generation and guaranteeing sustainable operation. At the beginning of 2007 the Company decided to construct a condensing economizer of 1.7 MW capacity. Final completion of this project is pending in Q1 2008. In 2007, a diesel-electric station of 60 kW capacity was constructed with a view to guaranteeing the operation of thermal water network pumps in case of interrupted supply of energy. The largest part of the total fuel balance of the Company, i.e. 98.13% is made up by biofuel, and the remaining part, i.e. 1.87% - fuel oil and domestic fuel oil. Over 2,000 hot water meters and 114 electricity meters have been installed in the flats of residents. From 2003 the replacement of old hot water meters not conforming to technical requirements of metrological checks was started. 100% of hot water meters in flats of residents were replaced in 2007 and at present the planned check of these accounting devices is under way. In future the Company will continue generating and supplying heat to the town of Molėtai in reliable and sustainable manner. AB Panevėžio energija

AB Panevėžio energija Senamiesčio g. 113, LT-35114 Panevėžys Tel: 8 45 463525 Fax: 8 45 501085 [email protected]; www.pe.lt Association member since 1998 (the founder). Vytautas ŠIDLAUSKAS General Manager of AB Panevėžio energija

“Our Company provides residents with comfort conditions assuming all heat supply concerns and enables developing hi-ﬁ technologies in such important area of human activity as heating of dwellings and meeting hot water needs, enables to use diﬀerent types of fuel and form fuel reserves and creates conditions for co-generation of electricity and heat. All energy sector of Lithuania is integrating with the European Union energy systems. It is not only about setting new goals for the heat sector, but also about introducing new principles of work. Our Company is ready for these processes”, - says Vytautas Šidlauskas, Director General of Panevėžio energija. AB Panevėžio energija evolved in 1963 from the Panevėžys Company of District Boiler Houses and Heat Networks. As heat demands were growing year- on-year, the Company kept building its industrial capacities. In 1964 two district boiler houses were taken over from Ekranas factory in Panevėžys and the heat networks company of Panevėžys merged with district boiler houses and heat networks of Smilga of Kėdainiai District – in 1966, of Rokiškis – in Construction works of the new co-generation plant in Panevėžys are coming to end. 1968, Trikotažas of Utena – in 1969, of Utena meat factory – in 1978, of Kėdainiai – in 1985, and with district boiler houses and heat AB Panevėžio energija is a regional company of generation and supply of heat and networks of Biržai, Pasvalys, Zarasai, Panevėžys and Kupiškis – in 1994. electric energy. The area of its operations covers the towns and districts of Panevėžys, Following the reorganisation of 1997 the heat sector companies of Lithuania were Kėdainiai, Rokiškis, Zarasai, Kupiškis and Pasvalys. Heat energy is supplied to residents, split into separate autonomous regional companies. organisations and industrial enterprises.

In November 2007, the Prime Minister Gediminas Kirkilas visited the power plant the Transportation of the gas turbine and generator to AB Panevėžio energija construction works of which will soon be completed by AB Panevėžio energija. in January 2007. 27

The Company’s shares are held by the municipalities of the aforementioned towns hot water supply system by the closed system. 485 heat stations of residential buildings and districts and to private shareholders. The major holding belongs to Panevėžys City or about 65% of all hat stations have already been modernised in the city. Municipality. After modernisation of heat stations in buildings more and more residents want that At present there are 36 boiler houses in the region serviced by AB Panevėžio energija their heat sector is maintained by the Company’s specialists and consequently consumers which are equipped with 19 steam and 89 water heating boilers. Total capacity of boilers prefer specialists experienced in the area of heat sector skilled enough to ensure the is 676 MW. Networks are supplied with about 0.9 million MwWh of heat energy annually. quality of services. AB Panevėžio energija maintains heating and hot water systems of The use of thermal water for heat energy supply makes up 91% and supply of steam – 217 residential houses, budgetary organisations and buildings of other designations in 9%. Heat energy from thermal sources to consumers is supplied via heat networks of the town of Panevėžys and Utena. 398 km length. Construction of heat networks is carried out every year for the purpose of connecting In addition to heat generation AB Panevėžio energija creates conditions for the use heat consumers to the centralised heat supply networks. Only in Panevėžys City over one of heat generated in production process of individual companies. Heat generated during kilometre of heat networks entries were installed in 2007. production process of AB Lifosa is used for heating of Kėdainiai town, AB Panevėžio With a view to guaranteeing good quality services for its consumers, in 2007 AB stiklas heat energy which remains after the technological process of the factory is used Panevėžio energija launched 10 reconstruction projects of heat networks and boiler for heating purposes in Panevėžys city. This alternative use of heat energy facilitates in houses the value of which is about LTL 24.5 million. More than 50% of the project value reducing fuel used by AB Panevėžio energija for heat generation as well as environmental is invested by the Company itself. All these energy projects are supported by the Republic pollution tax burden. of Lithuania and co-financed by the European Union – up to LTL 11.29 million of aid was The Company supplies heat energy to nearly 52,000 consumers. The largest group allocated from the European Regional Development Fund and from the State Budget of of centralised heat consumers comprises residents. The total area of residential premises the Republic of Lithuania. which is heated by AB Panevėžio energija makes up more than three thousand square The largest investments go to modernisation of heat networks of Panevėžys City. Heat metres. networks were reconstructed in Kėdainiai town and in Kapliai, Akademija and Šlapaberžė Professional team of AB Panevėžio energija employees operates and maintains the settlements of the dstrict. The reconstruction works of boiler houses in Akademija and heat sector in effective manner successfully organising supply of heat to consumers. Šlapaberžė settlements of Kėdainiai district and of the boiler house of Rokiškis town will be The Company carries out reconstructions of its boiler houses, replaces the type of finalisedthisyear.Implementationoftheseprojectswillfacilitateinminimisingheatlossesin burnt fuel with cheaper fuel and increases the amounts of biofuel with a view to improving the networks, increasing heat supply effectiveness and guaranteeing reliable supply of heat the ecological situation of the country and reducing fuel input. to consumers thereby contributing the improvement of mineral resources, reduction of fuel The upgrading of boiler houses through the introduction of automatised and environmental pollution. Completion of construction works of Panevėžys TPP which also maintenance of boilers simplifies the work of employees, improves operating reliability received EU financingofuptoLTL20millionispendingatthebeginningofthisyear.Thenew of boilers and increases efficiency. gas burning 35 MW capacity co-generation power plant will generate electric energy for the Successfully operated steam turbines using combined heat and energy generation country’s residents which will be sold to the national electricity transmission network of the cycle facilitates in reducing heat generation, transmission and sales costs. country and will supply with heat the inhabitants of the town of Panevėžys. The use of advanced automatised chemical and mechanical water cleaning Having regard to the National Energy Strategy and preparing for decommissioning technologies reduces water, electricity and heat consumption and minimises waste of Ignalina NPP reactors AB Panevėžio energija will contribute to the decommissioning water pollution. effects. Guaranteeing reliable supply of electric energy to the country’s consumers with At present the strategic implementation of Panevėžys City heat networks minimum costs and environmental impact the Company is planning the construction of development plan which provides for centralised heat supply perspectives is continued. the second unit of the thermal power plant in Panevėžys”, - says Vytautas Šidlauskas, the Residents keep upgrading heat stations of their residential buildings and replacing open Director General of AB Panevėžio energija.

On 7-9 September 2006 the Company participated in the international exhibition “EXPO Aukštaitija 2006” of Panevėžys Chamber of Commerce, Industry and Crafts. UAB Pakruojo šiluma

UAB Pakruojo šiluma Saulėtekio g. 34, LT-83133 Pakruojis Tel./fax: 8 421 61139 [email protected]

Association member since 2003. Jonas BUMELIS Director of UAB Pakruojo šiluma

The Company was established in 1981. Until then the heat sector was subordinate to Public Utilities Centre of Pakruojis District. On 1 October 1981 the heat sector was separated and transferred to the newly set up company which was designated as the Joint Administration of Boiler Houses and Heat Networks. The Company belonged to the National Industrial Association of Heat Suppliers under the Ministry of Public Utilities Sector. In 1984 as a result of reallocation of the ministries the Company’s name was changed to Pakruojis District Boiler Houses and Heat Networks. In 1989 the National Industrial Association of Heat Suppliers was designated as the Industrial Association Šiluma and in November 1990 – the State Enterprise Šiluma. Upon liquidation of the State Enterprise Šiluma on 1 April 1994 the Company’s assets were transferred to Šiaulių šilumos tinklai of AB Lietuvos energija. Then the Company became of Pakruojis heat networks branch of Šiaulių šilumos tinklai. After reorganisation of AB Lietuvos energija in 1997 the Company’s name was again changed to Pakruojis heat networks branch of SP AB Šiaulių energija. When for the purpose of further decentralisation of heat sector in 1999 Pakruojis District Municipality took over the Company’s assets, a new entity - a special purpose joint-stock company equipment was reconstructed. This project is co-ﬁnancedbytheEnvironmentalInvestment Pakruojo šiluma was set up (from end-1999 designated as UAB Pakruojo šiluma). The sole Fund of Lithuania. shareholder of the Company (100% holding) is the Municipality of Pakruojis District. In 2007 the following warn heating pipeline routes were replaced by the routes The principal activity of the Company is supply of heat energy. The main heat energy without channels: 250 metres in the networks of the hospital block boiler house and consumers are residents (73%), 17% - municipal enterprises, 10% - other enterprises and 92 metres in Pakruojis DBH networks. Also, funds were invested in repairs of the building organisations operating in Pakruojis district. 80% of the Company’s income are earned of Pakruojis District boiler house. The warn boiler in the hospital boiler house was replaced from supply of thermal energy. Other income (20%): administration of joint ownership by a new one. of the owners of ﬂats and other premises, operation of heat units, construction and repair On 1 October 2006, UAB Pakruojo šiluma celebrated its 25th anniversary. The former works, warehousing of fuel and rent of unused premises. directors of our Company and the Mayor of Pakruojis District Municipality paid a visit to the In 2006, the Company invested LTL 687.3 thousand into the reconstruction of Company on this occasion. During this event the Company’s employees with the longest technological equipment of Pakruojis District boiler house. This reconstruction involved service record were commemorated and awarded honorary diplomas. At present the Com- replacement of the warn boiler in Pakruojis District boiler house and installation of pany has 43 employees. We are happy that many employees of our Company are working automatized 5.7 MW gas boiler with condensing economiser. Electrical and automatization for many years already. The average service record of the Company’s employees is 10 years. UAB Plungės šilumos tinklai

UAB Plungės šilumos tinklai V. Mačernio g. 19, LT-90142 Plungė Tel: 8 448 72077 Fax: 8 448 51854 [email protected] Association member since 1999. Petras PIEKUS General Manager of UAB Plungės šilumos tinklai

District heating in Plungė Town was commenced by the Centre of Public Utilities of was separated from the heat sector of Plungė in the same year accounted for about 16% Plungė. The Centre had several boiler houses in Vytauto, Telšių, A. Vaišvilos and V. Mačernio in the total hat sector balance. In 1999 boiler houses of Šateikiai and Alsėdžiai townships streets. All boiler houses were burning coal and wood. were transferred to the Company. Almost LTL 0.4 million were invested in the renovation After reconstruction of coal-burning boiler houses between 1978 and 1980, the of the aforementioned objects. burning of heavy fuel oil was started. Until 1980 the Company was run by Tomas Zabitis. In 1999 the Company obtained a bank loan of LTL0.8 million and completed the Boiler houses used old boilers Universalas, Minskas, Energija and Kiviliai. Heavy fuel oil looping of J.Tumo-Vaižganto and V. Mačernio Street boiler houses, i.e. the load of the latter was transported by road from Telšiai. The development of the town and growth of fuel boiler house was increased, and the former was closed down. Group heat substations prices encouraged looking for new technological solutions. were also closed down in the same year. Gasification works of boiler houses were commenced when the gas pipeline route In 2003 the boiler house in Vėjo Street was moved closer to consumers which was constructed to Plungė. Reconstruction of the boiler house in V. Mačernis Street facilitated in reducing heat losses. (Gagarinas boiler house of block III) was started already in 1982: two gas burning water In 2004 German 350 kW electric and 442 kW thermal power co-generation facility heating boilers TVG-8 and one KVG-6.5 water heating boiler were erected. As a result the was erected in the boiler house of V. Mačernio Street. This facility burns natural gas and heat generation increased considerably. co-generates electric energy and heat. Generated electric energy is used for the needs of Petras Piekus appointed to the post of the Company’s Director in 1980 had to start a the boiler house and heat is supplied to consumers. new stage of the Company’s development. With a view to improving the utilisation of the In consideration of growing gas and electricity prices the Company aims at using gas-burning boiler house capacities the looping of the heating pipeline routes of boiler energy resources with maximum efficiency. In February 2008 a new 5 MW capacity houses was carried out. Having closed down non-efficient boiler houses environmental VESSMAN LH boiler with condensing economized will be put into operation in February pollution was reduced and the efficiency of the use of equipment improved. 2008 instead of the old TVG-8 boiler. In 1987, the hospital boiler house and 2 DKVR boilers of Plungė school of agriculture Investment programmes of the Company depend upon gas prices. The initiator were transferred to the Company. The main users of this boiler house were the complex and promoter of all ideas is its Director General Petras Piekus leading the Company for of the specialised school of agriculture and the hospital. In implementing the Company’s many years already. Today the Company’s Director General is one of active promoters strategy – operating modern, cost-efficient and perspective boiler house generating heat who encourages increasing energy performance of buildings through their renovation with minimum costs, the boiler house in V. Mačernis Street was developed supplying it arguing in reserved and responsible manner that expenses of consumers can be reduced with DE-25-14 steam boiler and establishing the fuel oil sector. only if energy resources are treated in complex manner. It is natural, because he runs the In 1990, a gas-burning boiler house was erected in Telšių Street and it became Company already for 30 years. technically possible to liquidate small boiler houses in the town centre. The plans of the Company for the nearest future include the upgrading of boilers In 1994 the state enterprise Šiluma was reorganised and our Company became a through the introduction of new technologies which guarantee effective use of primary branch of Klaipėda heat networks. fuel, renovation of heating routes, because it increases reliability of systems. Future also brought new surprises for the Company – sharp reduction in thermal Up to 77% of the total heat sales volumes are supplied by the Company to residents energy purchasing volumes caused technical losses, continuously growing fuel prices of the town of Plungė and Alsėdžiai, Šateikiai, Žemaičiai and Kalvarija settlements. The increased debts of residents and companies. number of heat consumers of the Company is about 6,000. Large heat generation capacities became inefficient when purchases of thermal Total installed capacity of boiler houses – 60.7 MW. Average generated amount of energy reduced and the Company did not have enough funds for reconstruction of heat – 30,000-40,000 MWh, of which 95.08% of heat is generated burning natural gas. existing equipment. In order to reduce heat losses, Plungės šilumos tinklai launched the The Company additionally purchases 40,000 MWh of heat from UAB Plungės programme of closing down group heat substations and installation of heat substations bioenergija which burns biofuel. Thermal energy is purchased for the contractual price in residential buildings. fixed in consideration of market developments and in observance of the Procedure for In 1998, SP UAB Plungės šilumos tinklai were separated from Klaipėda heat networks Purchasing Heat from Independent Producers for the Heat Supply Systems. with liabilities amounting to LTL 3.2 million and became one of the companies owned by Heat energy is transmitted via heat networks of hot water. Networks operated the Municipality. The Municipality remained the principal shareholder of the Company. by the Company are of 19.9 km length. During the period of 2004-2006 about 28% of After separation from AB Klaipėdoe energija the price of 13.20 ct/kWh was pipelines were replaced. Heat supply losses diminished from 27 to 20%. established for centralised heat supply. The base price of heat established in 2003 was The Company employs skilled staff.Thankstoexperienceaccumulatedbyemployees 12.70 ct/kWh, and in 2006 – 15.77 ct/kWh. Such a leap of prices was predetermined by and their working skills the Company is able to compete with companies of the same growing gas prices because fuel input accounts for 70% o all inputs. group offering the lowest price. We are sure that UAB Plungės šilumos tinklai today is a In 1999 the Municipality issued the decision obligating the Company to purchase perspective DH company of Plungė and neighbouring settlements capable of providing six newly constructed boiler houses in Stoties Street. The heat sector of Rietavas which consumers with thermal energy of good quality. UAB Radviliškio šiluma

UAB Radviliškio šiluma Žironų g. 3, LT-82143 Radviliškis Tel: 8 422 60872 Fax: 8 422 60873 [email protected]; www.radsiluma.lt Association member since 1999. Zigmantas ABROMAVIČIUS Director of UAB Radviliškio šiluma

The boiler house of the town of Radviliškis has been set up as a result of reconstruction In 2001-2003 group heat substations were closed down and replaced by modern and development of Radviliškis Agricultural Machinery Factory (AMF). When the demand heat stations contributing to the efficient use of thermal energy by residents. for energy increased it was decided to construct a steam boiler house for heating and For heating season of 2002-2003 the operation of heat sectors of the Baisogala technology needs. The boiler house was dislocated in the industrial part of the town near Township and Pakiršinis village was assigned to the Company. Radviliškis Shop of Panevėžys Glass Factory, because of the railway branch laid here from After reorganisation in 2004 2 boiler houses of Šeduva Township and the boiler Radvliškis railway station. house of Raudondvaris were transferred to the Company. In 1961, construction of the boiler house began and in 1963 it was pout into The present installed capacity of boiler houses of 59 MW is not utilised in full and its operation and started supplying steam to the companies of Radviliškis and to the central maximum hourly thermal power output in winter is 32 MW and in summer time – 19 MW. boiler house of the town. This boiler house began providing centralised heat to residents. In Radviliškis Town the Company provides heating to 141 multi-dwelling buildings, As the town was rapidly developing, in 1969 it was decided to assign the operation of 67 companies, 48 individual houses and 34 objects in villages. Total area of all buildings the boiler house to the actors of the energy sector, i.e. to the national district power exceeds 400,000 square metres. plant Rėkyvos VRE. Operation of the boiler house improved and it was expanded by With a view to improving its performance and economic indicators the Company installing one more 10 t/h steam boiler; reconstruction continued in 1972-1974 included continuously introduces effective measures: steam boiler conversion to water mode, installation of another 20 t/h steam boiler, providing boilers with automatized control use of power transmission with frequency exchangers in main installations, adapting from the central control panel, and construction of the industrial-administrative building the economizer of dismantled boiler to use evaporative emission heat, optimisation of and a new stack of 80 metres height. thermal hydraulic modes in the networks, operating modes of boilers, modernisation of The Heat Sector of Radviliškis town belonged to the regional district heating water preparation sector and installation of information technologies. company Šiaulių šilumos tinklai established in1977. Having implemented these measures the Company succeeded in considerably In 1978, construction of 40 MW water heating boiler and erection of the above- reducing heat losses in the networks from 35.91 to 19.83%, relative fuel consumption – ground hot water pipeline of 400 mm diameter to the town was started. This pipeline was from 101.99 to 89.43 kWh/MWh, and consumption of electric energy – from 23.32 to put into operation in 1980, and the boiler – in autumn of 1983. 9.71 kWh/MWh. All these performance indicators have been achieved with minimum Since 1991 heat has been generated using natural gas enabling to refuse fuel oil- investments operating old installations. The tariff of the Company is also considerably high sulphur. lower than in other districts with analogous conditions. After restoration of independence Šiaulių šilumos tinklai were integrated into Total length of centralised heat supply networks in Radviliškis District is 28 km. The the structure of the national energy system Lietuvos energija, and in 1994 they were great majority of these networks were erected 25 years ago in underground channels. The reorganised to the special purpose joint-stock company SP AB Šiaulų energija. length of newly constructed routes is 1.6 km. In 1997 Šiaulų energija was separated from Lietuvos energija and transferred to The present condition of heat supply pipelines predetermines average heat losses the Municipality. On 23 December 1998, SP UAB Radviliškio šiluma separated from it in the routes, i.e. abut 20% (average for Lithuania is 21.7%). Having implemented the and started operating autonomously. After reorganisation heat tariff applicable to the project co-financed with the EU structural fund proceeds the Company is planning to Company was reduced from 12.65 to 11.3 ct/kWh. renovate 7 km of the routes. This Project is aimed at increasing centralised DH system By virtue of Radviliškis District Municipality Decision of 1 March 1999 the reliability and reducing heat losses. heat sectors of Aukštelkos, Kalno Gražionys, Kutiškės and Linkaičiai were assigned to LTL 300,000 financial aid received from LEIF was used for reconstruction of one of the Company which started Šeduva boiler houses and for changing the type of fuel into natural gas. autonomous operation. The town annually consumes about 51 GWh of heat supplied in centralised manner. In the same year all heat For the purpose of generating centralised heat the Company uses natural gas and used consumers were provided with mineral oil as reserve fuel. For a certain period of time gas prices were favourable, but after heat accounting meters. their sharp recent growth the importance of the use of renewable types of fuel increased. Modernisation of heat stations The project for the construction of 2 biofuel boilers in Radviliškis boiler house is already was postponed due to shortage of prepared. The Company also envisaged receiving support from the EU structural funds for working capital, and only water flow the implementation of these projects. pumps were replaced by centrifugal In 2007, new household premises for employees were erected in the central boiler noiseless water pumps. As a result house using co-financing funds received from SODRA (LTL 100,000). the quality of heating was improved This year the Company is planning to construct its own power station. considerably reducing consumption The Company has 68 employees of high qualification. District Boiler House, 2004 of heat. UAB Raseinių šilumos tinklai

UAB Raseinių šilumos tinklai Pieninės g. 2, LT- 60133 Raseiniai Tel: 8 428 51 951 Fax: 8 428 54 150 [email protected], www.raseiniust.lt Association member since 1999. Stanislovas BARTKUS Director of UAB Raseinių šilumos tinklai

UAB Raseinių šilumos tinklai is the only one DH supplier in Raseiniai District. of energy is generated using biofuel. Implementation of these advanced technologies Construction of the block boiler house was started in 1971 and in 1973 it was put into and using biofuel which is considerably cheaper than fuel oil compared with present operation. At that time the boiler house belonged to LSSR Raseiniai District Centre of fuel prices in 2007 the Company succeeded in achieving about LTL 1.5 million economic Public Utilities. The block boiler house of Raseiniai comprised four smaller boiler houses effects. Operation of bio-boilers is also beneficial in economic terms because of reduced located in Pieninės, Dubysos, Komunarų and Kudirkos Streets. environmental pollution. The Joint Boiler House and Heat From 2005, all group heat substations were closed down. Heat stations in 75% of Networks Administration set up in 1979 all heated multi-dwelling buildings in Raseiniai Town were renovated and equipped with after separation from Raseiniai District automatised heat and hot water preparation and control equipment. Centre of Public Utilities was subordinate Heat supply pipeline is particularly important part of heat supplied to consumers to the Industrial Fuel Board under the in centralised manner. The length of UAB Raseinių šilumos tinklai routes is 20.6 km, of Ministry of Public Utilities Sector. In 1984 which more than 4 km of thermal routes have already been reconstructed since 1996 with the Company changed its name to Raseinių investments in this area exceeding LTL 2 million. Only in 2007 1.2 km of network pipelines rajono katilinė ir šilumos tinklai (Raseiniai were renovated. The longest section (700 metres) of thermal route pipelines comprises District Boiler House and Heat Networks). Raseiniai Town trunk networks mounted from the boiler house using piping with industrial Between 1985 and 1990 boiler houses of the town were closed down. They were insulation. A new thing is the erection of two separate branches: one branch is used to replaced by the boiler house of Žemaičių Street taken over by Raseinių rajono katilinė supply thermal energy to the central part of the town and the second – to the block of ir šilumos tinklai from the cooperative building association of Lithuania – Raseiniai Turgaus and Muziejaus Streets. This innovation increased reliability of thermal energy and Construction Organisation (RSO-1), the boiler house in Tiesios Street taken over from the better thermal insulation helps in reducing heat losses in the networks. In case of accident National Statistics Department of LSSR and the boiler house in Muziejaus Street taken now it is possible not to interrupt supply of thermal energy in the whole town. In addition, over from the secondary vocational school No. 70. Later after erection of hot water looping stage I of the visualisation model was completed which enables operatively detecting routes without channels the boiler houses of Muziejaus and Tiesos Streets were also closed different troubles and promptly correcting them. down. After reorganisation of 1994 the Company was transferred to Šiaulių šilumos tinklai To guarantee continuous supply of heat and hot water to the objects of the public and designated as an area of UAB Raseinių šilumos tinklai. enterprise VšĮ Raseinių ligoninė, the looping construction works have been completed As the years passed by the Company’s subordination as well as its name changed and the heating pipeline route of about 160 metres with industrial insulation was more than once. In 1997 the Company was transferred from Šiaulių šilumos tinklai to economically installed. As a result the reliability of thermal energy supply to the object of Raseiniai District Municipality to which it belongs until present. In the same year the high importance was considerably improved. Company took over from SP AB Raseinių melioracija 6 MW thermal power boiler house UAB Raseinių šilumos tinklai investment policy is focussed on the efficiency of of Ariogala and Viduklė fuel oil storage facility and some time later – two boiler houses production, reliability of heat networks and reduction of losses in thermal routes. Now in Viduklė Township from SP UAB Raseinių komunalinis ūkis; after looping of the heating the Company is preparing to file an application for obtaining financial support from the pipeline route only one boiler house was left in Viduklė. European Union Structural Funds for the financing of reconstruction of heat networks. The largest subdivision of the Company is Raseiniai boiler house of 28.62 MW Using this aid the Company envisages reconstructing 8.7 km heat networks. capacity in which after reconstruction lasting almost two years, in summer of 2007 the In addition, the Company is planning to install a condensing economizer and State Commission accepted assembled and tested 3 and 7 MW boiling-layer boilers. expects economic effect of about 20-30%. The amount of LTL 7.8 million was invested in the reconstruction of the boiler house, One of the factors predetermining the quality of operations is people working for including LTL 4.2 million funds were received from the European Union Structural Funds. the Company. At present the Company employs 73 staffofwhomabout80%haveworked At present many processes in the boiler house are automatised and it was provided with for it for ten years and longer. The Company’s Administration takes care about professional a computerised operator’s workstation. The second by size is Ariogala boiler house with proficiency of employees and promotes them in different ways for the achieved results. two 1.5 MW water heating boilers which has 1.5 MW biofuel boiler operated since 2004. Two employees of the Company were awarded the Honorary Employee’s title for long Given the growing heat demand another 3-4 MW biofuel boiler will be additionally service record and active work for the Company – the former boiler house operator and erected in Ariogala. The smallest boiler house is in Viduklė which is equipped with two trade union chairman Petras Stoškevičius and former electricity sector overseer Alfredas 0.8 MW KPK water heating boilers. Stonys who on the occasion of the Energy Specialists’ Day in 2007 also received the Letter By end-2007, boiler houses burnt fuel oil and other types of fuel (except in Viduklė of Thanks of the Republic of Lithuania Minister of Economy for active work in developing Township) until 1.5 MW thermal power water heating bio-boiler was mounted and put district heat supply in Lithuania. into operation in Ariogala boiler house. At present two 3 and 7 MW boiling-layer bio- UAB Raseinių šilumos tinklai has an intelligent and industrious team focussed on boilers have been completely put into operation in Raseiniai boiler house and about 80% new works and innovations. UAB Šakių šilumos tinklai

UAB Šakių šilumos tinklai Gimnazijos 22/2, LT-71116 Šakiai Tel: 8 345 60588 Fax: 8 345 60587 [email protected] Association member since 2003. Laimutis KASPARAVIČIUS General Manager of UAB Šakių šilumos tinklai

The Company started its activities in 1964. At that time it was a subdivision of Šakiai 2001 an autonomous joint-stock company Šakių šilumos tinklai was established. 100% Public Utilities Centre. Until 1976 the Company had one boiler station in Tarybos Street, of the Company’s shares are held by Šakiai District Municipal Council. and in 1976 a new boiler house was erected in former Valaičio Street and both these boiler Already during the first years of its activities the newly set up Company started stations were provided with solid fuel water heating boilers Miskas-1, Tūla-3 and Kivili. By firmlyrenovatingtheheatsector:inadditiontooldfieldthermalrouteswerereplacedand end-1981 the Company started operating under a new name – Šakiai Town Joint Boiler certain routes were respectively reconstructed according to the completed optimisation of Houses and Heat Networks Administration which became subordinate to the Industrial the pipeline diameter in some cases reducing the piping diameter even twice. In 2001, Fuel Board under the Ministry of Public Utilities and later to a state enterprise Šiluma renovation of heat substations in residential dwellings was started giving up group heat which also remained subordinate to the Ministry of Public Utilities. Given increasing substations. The remaining heat stations in Šakiai Town were renovated in 2005 and since numbers of residential buildings, growing demand for thermal energy and envisaging then operation of 4.4 km length hot water supply routes was completely discontinued. larger construction volumes of residential dwellings in future in Šakiai Town, in 1982 the Only 6.2 km of heating pipeline routes were left of which 49 per cent were replaced by block boiler house in former Valaičio Street was reconstructed. During the reconstruction new polyurethane insulated pipes. Such resolute actions generated noticeable results – six water heating boilers were replaced by installed three steam boilers mainly burning heat losses reduced from 28 (in 2000) to 16% (in 2007). Heat in Šakiai Town is further fuel oil and also capable of burning liquid domestic fuel oil and gas using the same burner. supplied from two boiler houses; one of these boiler houses operates the same DKPB When in 1989 the natural gas reached Šakiai Town, the gasification of boiler houses was 6.5 t/h steam boilers (in 2000 one boiler was converted from steam to water boiler for completed and they started burning natural gas. operating purposes) and the other boiler house has one 2 MW boiler burning chip wood In 1994, the Company was merged with AB Lietuvos energija branch Kauno šilumos and two boilers each of 1.6 MW capacity burning natural gas. It should be noted that the tinklai as a separate structural subdivision. In 1997, after reorganisation of AB Lietuvos whole town can be supplied with heat from one or the other boiler house or from both energija, a branch of SP AB Kauno energija – Šakių šilumos tinklai was set up. During boiler houses providing their load according to separate blocks of the town. subsequent stage of decentralisation of the heat sector, in October 2000, a branch of SP High economic benefits were generated by 2 MW boiler burning chip wood AB Kauno energija – Šakių šilumos tinklai was separated from Kaunas and on 1 January constructed in Šakiai Town in 2003. This boiler produces up to 40% of total heat in Šakiai Town. This heat is about 30% cheaper than heat generated burning natural gas. Implementation of the above-described measures facilitated in maintaining the same 14.69 ct/kWh heat price between 2001 and 2004 irrespective of even 20% increase in the natural gas price in 2002. A new base heat price of 18.71 ct/kWh established for the Company in 2002 will be recalculated in mid-2008. In addition, the Company carries out the maintenance of interior heating and hot water systems of multi-dwelling buildings. In 2000, this work was assigned to the Company by Šakiai Neighbourhood by virtue of Šakiai District Council decision. Also, upon change of legal framework from 2000 heat generation and supply activities provided by separate neighbourhoods were transferred to the Company for property maintenance and operation purposes. The greatest problems regarding property taken over from three neighbourhoods were related with the district heat sector of Gelgaudiškis Neighbourhood in which each of 16 multi-dwelling buildings were heated with domestic boilers burning wood. In 2007 the heat sector of this town was upgraded resulting in the renewal of its district heat supply. To this end 1.95 km of heating pipeline routes were erected, 4 boilers burning straw or solid fuel (each of 0.46 MW) as well as 1 reserve VK-1.6 boiler burning liquid domestic heating fuel were installed. Total project value is LTL 5.2 million, including LTL 2.2 million of received financing.This is a relatively large investment for the Company as its authorised capital amounts to LTL 2.3 million and irrespective of increase labour efficiency (5 boiler operators remaining out of 19) and cheaper fuel this investment is likely to cause the rise in heat price. The Company engages quite a small number of employees, but long service record of the great majority of them and honest work of the whole team guarantee sustainable an reliable heat supply on the background of continuously emerging and growing new workloads. UAB Šilalės šilumos tinklai

UAB Šilalės šilumos tinklai Maironio g. 20b, LT-75137 Šilalė Tel./fax: 8 449 74491 [email protected]

Association member since 2004. Algirdas ŠNIEPIS Director of UAB Šilalės šilumos tinklai

After restructuring of AB Lietuvos energija on 1 July 1997 a special purpose joint- Renovation works of 3.1 km heat trunk routes via pipes with industrial insulation stock company SP UAB Šilalės šilumos tinklai was separated together with seven areas of without channels was completed for LTL 2,935.6. The contractor – UAB Klaipėdos western Lithuania and became a branch of SP AB Klaipėdos energija. inžinerinių tinklų statyba. Upon reorganisation of SP AB Klaipėdos energija by way of splitting the newly set up 63 new heat stations were erected and 8 existing heat substations were renovated SP UAB Šilalės šilumos tinklai as from 1 September 1998 started operating independently. installing remote scanning system (investment amount – LTL 942,500). Contractor – UAB At that time the Company operated four boiler houses and two group heat substations. Axis Industries. The collective boiler-room was closed down and operation of 3.4 km of The length of heat networks was 12.7 m and of hot water – 9.8 km. hot water networks was discontinued. As the price of fuel kept rapidly growing the Company annually performed At present the Company operates two separate DH networks: the network of boiler renovation works of the heat sector. house No. 1 located in the suburb and bordering with Vingininkai village (9,559 metres) Renovation works of 1999 in boiler house No. 1 covered reconstruction of three with 17.7 MW total energy capacity and local network of the boiler house in Vytauto steam boilers and of a group heat substation, renovation of 7 multi-dwelling buildings Didžiojo st. 23 (824 m) of existing 5.58 MW total capacity. installing individual automatised heat substations and the looping of heat networks. The Heat networks are of 10.38 km length and hot water pipelines – 0.92 km. 110 boiler house No. 1 started supplying heat energy of high parameters. The boiler house No. objects are provided with heat in centralised manner (total heated area – 126,666 m2), of 3 was equipped with new fuel burners enabling to use cheaper fuel. which 40% comprise enterprises, institutions and organisations and 60% - residents. In 2000, the boiler house No. 4 was reconstructed adapting it for burning and after Annual heat generation amounts to 25,000-28,000 MWh, of which consumers are laying new heat piping route of 424.5 m in 2004 (investment amount – LTL 226,400) provided with 19-21 MWh of heat. Average annual realisation income - LTL 3 million. heat consumers were connected to the supply system of high parameters supplying heat Heat price – 14.88 ct/kWh (total single-component less VAT). By decision of Šilalė from the boiler house No. 1. District Municipality the price for heating of residential premises is subject to subsidy of In 2001, analogous reconstruction was completed in the boiler house No. 2 adapting 1.5 ct/kWh VAT inclusive. it for burning wood. Between heating seasons this boiler house supplied heat energy for In 2008, in observance of the National Investment Programme 2006-2008, the preparation of hot water to all heat consumers of Šilalė Town, except for the block of the works under the project “Renovation of Šilalė Town Heat Sector” will be continued and the boiler house No. 3 (Hospital). following investments will be implemented: In 2005, 28 heat stations of Žemaitės block heat consumers were renovated • Renovation of main heating pipeline routes using for this purpose LTL 635,899 installing automatized heat substations. The boiler house No. 2 was closed down and funds of the National Investment Programme. operation of 2.1 km hot water networks was discontinued. • Reconstruction of the boiler house No. 2 adapting for heat generation the cheapest The boiler house No. 3 until present is operated via a separate network utilising the type of fuel and after connection with networks of the boiler house No. 1 to keep the boiler existing capacities. house No. 2 as a reserve boiler house. In 2006, investment projects of the renovation of Šilalė Town heat sector for LTL 3.79 Purpose oriented and consistent operation of our Company depends upon the less VAT were prepared and implemented. implementation of the above-speciﬁed works. AB Šiaulių energija

AB Šiaulių energija Pramonės g. 10, LT-78502 Šiauliai Tel: 8 41 591200 Fax: 8 41 540307 [email protected]; www.senergija.lt Česlovas KASPUTIS Association member since 1998 (the founder). General Manager of AB Šiaulių energija

The history of the joint-stock company AB Šiaulių energija dates back to 1923 when energy – compared with the pre-war period it was even by 4 times smaller. In November negotiations of Šiauliai Municipality with the Joint-stock Sales Cmpany of American 1996 the first 25t/h steam boiler was put into operation in the southern boiler house Lithuanians ended in a concession agreement according to which the obligation was which evolved into the main power plant as the town kept growing. assumed to construct a power plant in the Bačiūnai Estate of Feliksas Karpis. In June Following different reorganisations of the energy system of Lithuania at present 1923, the German firm mounted fixed locomobile of 10 am pressure and 30 hp (220 kW) 95.26% of the Company’s shares are held by the Municipal Council of Šiauliai City, capacity Heinrich Lenz and a 3-phase generator of 270 kW power, 6300 voltage and 4.65% – by Šiauliai District Municipal Council and 0.09% - by the group pf private 335 kVa alternating current. In September of the same year 2 km electricity line of 6 kV shareholders. voltage was installed to Piktmiškis peat-bogs and later – to the town. This was the first The principal activity of the Company is generation of steam and hot water and high-voltage generator and the first high-voltage electricity line in Lithuania which was centralised supply of thermal energy for heating, technology and preparation of hot a starting point for the development of the energy system of Lithuania. Since 1931 the water. The total capacity of 15 power plants operated in Šiauliai and Šiaulai District is Company belonged to Šiauliai residents. about 600 MW of heat and 3 MW of electric energy. Heat is supplied to 1,109 residential Considering growing demand for electric energy in Šiauliai and surrounding cities, buildings, 152 budgetary organisations, 9 companies and 668 institutions and the Electric Energy Committee of Lithuania decided to construct a more powerful power organisations. Total area of district heating exceeds 2 million square metres. In 2005, after plant. On 15 October 1939 construction of the new thermal power plant of 2.5 MW prolonged interruption, Šiaulių energija resumed generation of electric energy for its own capacity was started in the centre of peat-bogs in Rėkyva according to the project of needs and part energy is sold to distribution networks. the engineer Leonas Kaulakis (later – the professor of Kaunas Polytechnical Institute). We are a Company of social responsibility. Our specialists are continuously working Construction works were completed only before the war. During the war only Rėkyva, on the improvement of heat generation and supply. In 2001 Šiauliai Municipal Council Bačiūnai and Petrašiūnai power plants were saved from bombs. In November 1956, after approved the plan of modernisation of the heat sector of the City envisaging over LTL 50 installation of 110 kV voltage electricity line Petrašiūnai-Panevėžys-Rėkyva and having million investments (about EUR 14.5 million). During 2001-2007 due to these investments connected Kaunas and Šiauliai power plants for parallel operation the establishment of heat technological losses alone were reduced by about 31,000 MWh. energy system of Lithuania was started. In 1961, 330 kV electricity line was installed Residential buildings services by the Company already have automatised heat (then it functioned at 110 kV voltage) Šiauliai-Jelgava, by which the energy system of substations. The great majority of them have remote scanning devices and are controlled Lithuaniūa was connected to the north-western joint energy system. fro the central dispatcher station. Residents were provided with a possibility to control And then the era of Kaunas HPP, Power Plant of Lithuania and Ignalina NPP began. After closure of old power plant of Bačiūnai and termination of electricity generation in Rėkyva power plant, Šiauliai received electric energy from other power plants of Lithuania and the Company generated and supplied only steam and heat energy to the town. In 1963, by decision of the Council of Ministers, the management of DH sector of Šiauliai area was entrusted to the national district power plant Rėkyva VRE. The Company took over the boiler house of Elnias leather and footwear factory which consisted of three shops at that time. In 1964 the gas torch was lighted in Elnias boiler house, heat sector was constructed in Rėkyva power plant and boilers were adapted for burning not only peat, but also fuel oil which at that time was very cheap. All these measures reduced the cost of

Old power plant of Bačiūnai. Today stacks of Šiauliai are more environmentally-friendly. 35 heat according to their needs and continue modernisation of local heating and hot water systems of buildings. In contract from other towns, Šiauliai residents were not required to make any additional payments for installation of heat stations – all these works were completed on the Company’s expense. Total DH system operation costs are smaller than in case of autonomous heating. By the way, as from 1955, when the first DH pipeline route was laid in Rėkyva settlement and from 1963 when district heating of buildings of the City was started, the largest heat losses were observed in heating pipeline routs of poor quality. Replacement of old pipelines with inefficient insulation with new pre-insulated pipelines without channels with installed trouble control system was started only a decade ago. Replacement of all 147 km heating pipeline routes of the City however would require annual investments of LTL 14 million. In 2005-2006, 447 m length and 600 mm diameter heating pipeline route near the Sun City and the heating pipeline route of 621 m length and diameter of 500 mm and 300 mm in the area of Tilžė-J.Jablonskio Streets adjacent to the new multifunctional New heating pipeline routes for reliable heat supply. complex were renovated. This project participated in the tender for the financing from EU Structural Funds and was awarded aid in the amount of LTL 1.13 million. Moreover, in recent years AB Šiaulių energija investments of recent years into the reconstruction of fourth has remained the only effective measure for limiting further increase of heat tariff. district heating pipeline routes already amount to LTL 7.8 million. Heat transmission losses Construction of combined heat and energy generation plant was provided for in the in upgraded heating pipeline routes reduced by about 60-70%. National Energy Strategy and in the business plan of the Company approved by Šiauliai Problems of heat losses in heating pipeline routes of Zokniai, Ginkūnai, Kužiai and City Municipality already on 24 February 2005. Daugėliai were successfully solved by constructing new boiler houses near residential According to the business plan which was respectively adjusted after organised buildings or reconstructing old boiler houses in other settlements and Šiauliai and tenders a new combined heat and energy generation plant will generate about Kuršėnai microdistricts into automatic gas-burning boiler houses operating without 218 GWh of heat and 63 GWh of electricity per year. Generated thermal energy will staff. They are controlled from the central dispatcher station. Cost-efficient generation suffice for preparation of hot water. And imported energy sources will still be used only of energy is ensured by condensing economizers installed in these boiler houses. In during heating season. Sales of generated energy at green energy purchase tariff will consideration of good attempts of the Company’s specialists to guarantee maximum be one of the principal sources fro compensation of funds spent for the construction efficiency of heat generation and supply the District Municipality is going to transfer more of the plant. Additional funds will also be saved on account of negotiable pollution boiler houses to the Company. Unfortunately, due to the same cost-efficiency criteria in permits. Co-generation of electricity will allow avoiding future growth of heat tariff as 2007 the Company had to give up the oldest company – the boiler house of Rėkyva. A gas and fuel oil prices will continue growing and after the period of 9 years and half of fully automatised condensing gas-burning 404 MW boiler house was mounted in closer the payoff of expenses for the construction of the plant the heat price will reduce even proximity to residential buildings. The same will happen to the northern boiler house by 25 LTL/MWh. which was constructed in 1992 and which never operated with full capacity. Construction Only investments and our wishes however will not be enough to reduce the price of an automatised boiler house in the area of Spindulio Street is pending in 2008. paid by consumers for heat provided to them. Residents must renovate and heat their The cost of energy was reduced with the help of investments; heating tariff was also houses, install hermetic windows, through which heat generated by us for such a high reduced for several times and now is the same for all consumers of the Company. Reduced price is wasted, modernise building heating systems so that each flat is able to control use of fuel oil minimized environmental pollution and negotiable pollution permits which heat according to its needs. In Šiauliai the great majority of buildings do not yet conform were saved and sold as a result helped to acquire a mobile boiler house of 2 MW which to modern technical and environmental requirements. Due to that more than half of will facilitate in avoiding the effects of potential accidents in heating pipeline routes and expenses of residents are spent for heating street air rather than their flats. guaranteeing uninterrupted supply of heat to the inhabitants of the city and district. In future energy sources will not become cheaper, therefore it is necessary that heat However during the past 15 years fuel prices kept growing and therefore co- suppliers and users, municipalities and state pursue the same efficient energy saving generation of heat and electricity using local and renewable fuel which cheaper by one policy and that we all have the same focus.

Commemorating the Energy Sector Specialists Day. Morning meeting of the Subscriber Service Council. UAB Šilutės šilumos tinklai

UAB Šilutės šilumos tinklai Klaipėdos g. 6A, LT-99116 Šilutė Tel: 8 441 62144 Fax: 8 441 62145 [email protected] Association member since 1998 (the founder). Algis Mykolas ŠAULYS Director of UAB Šilutės šilumos tinklai

UAB Šilutės šilumos tinklai is the main DH energy supplier in the Town of Šilutė and The boiler house of Šilutė Town has a steam boiler DKVR-10/13 (7.5 MW, burning settlements of Traksėdžiai, Rusnė, Juknaičiai, Kintai and Švėkšna. fuel oil or shale oil), two water heating boilers PTVM-30-150 (25 MW thermal input, The principal shareholder is Šilutė District Municipality holding 99.9% of the burning fuel oil or shale oil) and KVGM-30-150 (25 MW thermal input, burning fuel oil Company’s shares, and the remaining shares belong to natural persons. Managerial or shale oil) and one water heating boiler Kaistra-4500 (4.5 MW thermal input, burning bodies of the Company are the general meeting of shareholders, the supervisory council, wood flakes). the board and the administration. The great majority of employees have extensive work At present the works of putting into operation-adjustment of 6 MW water heating experience. The average number of employees during heating season is about 73 people and 3 MW steam boilers are under way. Traksėdžiai settlement boiler house has two water and after heating season – about 60 people. heating boilers VK-21 (thermal input of 2x1.86 MW, fuel- shale oil) and one water heating The district heating company was set up on 1 March 1978 and was designated as boiler Kaistra-1500 (1.5 MW thermal input, burning wood flakes). the Joint Boiler House and Heat Networks Administration and from 1 January 1984 the From the beginning of 2004 heating season Traksėdžiai settlement boiler house Company was renamed to Šilutė District Boiler Houses and Heat Networks subordinate to started burning biofuel instead of fuel oil. the National Industrial Heat Suppliers Association under the Ministry of Public Utilities In 1998 Šilutė District Municipality transferred to the Company the operation of Sector. electrode boiler house in Juknaičiai settlement which was very inefficientandweinstalled Heat was supplied only to residents of Šilutė Town connected to the DH networks. in it 4 boilers burning straw Ri-340 (4x0.34 MW thermal input). The Company had 5 block boiler houses burning liquid light heating oil. The boiler house of Rusnė settlement is equipped with three water heating boilers In 1983, at the beginning of the heating season, the Company started operating Kalvis-220 (thermal input of 3x0.22 MW, fuel – wood and coal). a newly constructed fuel oil burning 50 MW installed capacity district boiler house Šilutė Town boiler house in Tilžės Street has two water heating boilers БHR-7 which was capable of supplying with heat all DH consumers. Five block boiler houses (thermal input of 2x0.07 MW burning diesel fuel) and one water heating boiler VIADRUS in Šilutė Town were retained and operated as group heat substations (in 1999 they were Б-300 (thermal input 0.127 MW). closed down). Švėkšna boiler house No. 1 has two water heating boilers BALTUR (2 x 0.07 MW On 31 May 1994, the Company changed its name, merged with AB Lietuvos energija burning diesel fuel). branch Klaipėdos šilumos tinklai and Traksėdžiai settlement boiler house was transferred Švėkšna boiler house No. 2 has two water heating boilers VIADRUS G300 (0.3 and to it for operation. 0.2 MW thermal input burning diesel fuel). Upon reorganisation of AB Lietuvos energija on 1 July 1997, Šilutės šilumos tinklai UAB Šilutės šilumos tinklai vision is to be a responsible heat supplier satisfying to became an autonomously operating company – SP AB Šilutės šilumos tinklai (since the maximum extent the needs of heat consumers; to replace main heating networks with 2003 – UAB Šilutės šilumos tinklai). pipelines without channels and reduce pipeline diameters; to increase thermal energy In 1998, operation of boiler houses of Rusnė, Juknaičiai and Kintai as well as Tilžė generation volumes using environmentally-friendly wood and biofuel; to attract new Street boiler house were transferred to SP AB Šilutės šilumos tinklai. consumers and provide its consumers with cheap heat supplied in qualitative manner; In 2007, SP AB Šilutės šilumos tinklai took over the operation of the boiler houses to encourage more consumers to choose district heating energy; and to improve heat of Švėkšna settlement schools. generation technologies and experience in this area. UAB Širvintų šiluma

UAB Širvintų šiluma Vilniaus g. 49, LT-19118 Širvintos Tel: 8 382 51831 Fax: 8 382 53192 [email protected]; www.sirvintusiluma.aiva.lt Association member since 2004. Arturas JUŠKAUSKAS Director of UAB Širvintų šiluma

By Order No. 126 of 28 February 1983 of the Ministry of Public Utilities Sector the In 2001 a small boiler house in Širvintos village was transferred to UAB Širvintų Joint Boiler House and Heat Networks Administration of Širvintos was set up. On 1 April šiluma according to the loan-for-use agreement and in 2003 the Company started 1983 it consisted only of the block boiler house No. 1 of Širvintos Town. The organisation operating the boiler house of Čiobiškis also according to the loan-for-use agreement. employed 17 staff. The Administration was subordinate to the Centre of Public Utilities In April 2002 the Municipal Council of Širvintos adopted Decision No. 31 on of Širvintos and to the Industrial Fuel Board of Vilnius which in 1984 was reorganised renovation of the heat sector in three stages according to the developed plan. Stage one into the National Industrial Heat Suppliers Association and Širvintos Administration was covered the looping of thermal networks of boiler houses Nos. 1 and 3, installation of two designated as Širvintos District Boiler Houses and Heat Networks. bio-boilers in the boiler house No. 3 and of 16 automatized heat stations in residential After the transfer of the central hospital boiler house to the balance of the Company buildings and enterprises in the western part of the town. All these works for which LTL in 1984, the number of its employees increased as well as heat generation volumes and 3024 thousand were spent were completed during a very short period and as early as in assets of the Company. During 1984 the Company generated 25,000 MWh of thermal November 2002 the bio-boiler was put into operation. energy in the form of steam and hot water. In stage two during 2003 LTL 507,000 were invested into the heat sector. Two In 1986 one more boiler house was transferred to the balance of heat networks group heat substations were closed down and 1.4 km of hot water pipeline routes were from MSMV which was designated as the boiler house No. 3. In the same year the former liquidated, 180 m new heating pipeline routes were constructed replacing 430 m of entity was reorganised into industrial association Šiluma. Heat generation volumes more heating pipeline routes of old type and 22 heat stations were modernised. than doubled. In stage three during 2004 LTL 525,000 were invested into the heat sector. The For a couple of years beginning with 1990 the Company did not undergo major main completed works comprise modernisation of 17 heat substations with funds of structural changes, except for the change of the Company’s name for several times and UAB Širvintų šiluma and 11 heat substations for enterprises and organisations using from 1994 by deci- their funds; as a result 4-pipeline heat supply system of the town was completely sion of the District liquidated, repairs of VŠK No. 4, KE 6.5/13, reinforced concrete polygon used for fuel Administration the wood warehousing, roof, etc. were carried out. The total of LTL 4,056,000 were spent for economic accoun- reconstruction works, of which the amount of LTL 287,900 was used for changing the type ting section was set of fuel, LTL 708,000 – for installation of heat stations, LTL 56,000 – for other works and up in the heat net- LTL 413,000 – for restructuring of heating pipeline routes. works which took Until 2002 the Company was loss-making and therefore did not have its own funds, over the maintenan- it obtained a loan of LTL 3 million the repayment of which started in 2004. All annual ce of heat stations of obligations to banks have been discharged in due time because about LTL 1.5 million buildings from the were saved burning biofuel. These funds were used for loan repayment without increasing sector of buildings. the heat price. The number of emp- According to UAB Cowi Baltic estimates the price of such type of reconstruction loyees went up to 73 or was by 4.3 times larger than at the beginning of the Company’s should have been about LTL 6 million. The great majority of works were performed by the activities. Company itself: replacement of heating pipeline routes, mounting of 55 heat substations, The last reorganisation in the Company took place in 2000 after separation of installation of the lift pump station, etc. the branch Širvintų šilumos tinklai from the special purpose joint-stock company SP Continuously looking for new possibilities for supplying itself with wood the Company AB Vilniaus šilumos tinklai. Staff numbers reduced to 66 people. This reorganisation purchased a vehicle for transportation of wood and woodchip manufacturing machines. At also changed the scheme of managerial obligations. SP UAB Širvintų šiluma took over present fuel wood supply problems are solved smoothly. Consequently the Company is able the functions, assets and consumers of the branch Širvintų šilumos tinklai. The top to repay the bank loan without increasing the price of heat for consumers. Compared with management of the Company remained the same. The authorised capital of the separated other heat suppliers the heat price in Širvintos is not high: Širvintos is the 16 th among 58 Company amounted to LTL 5,429,190. The principal shareholder of the Company is the districts and companies of Lithuania in terms of heat price. Everybody knows that the larger Municipality of Širvintos District which holds 99.9% of shares. is the number of heat consumers, the lower is the heat price and given relatively small SP UAB Širvintų šiluma operated the boiler house No. 1 located in the centre of the numbers of consumers in Širvintos the Company can boast of its correct decisions which town and the boiler house No. 4 located in the outskirts of the town. After looping of help in retaining the existing heat price for six consecutive years already. networks in 1997 the boiler house No. 2 was not operated. Heat to its former consumers In 2006, UAB Širvintų šiluma filed an application for the financing from the EU was supplied from the boiler station No. 1. Heat energy is generated using gas and fuel oil Structural Funds for renovation of heating networks of the town. The Comppany received is used as reserve fuel. The Company operates 11.4 km length heat networks. Part of them financing. After implementation of the project in 2007 the Company expects saving about was reconstructed laying pipelines of the new type without channels. 1,600 MWH of thermal energy annually. UAB Tauragės šilumos tinklai

UAB Tauragės šilumos tinklai Paberžių g. 16, LT-72324 Tauragė Tel: 8 446 62860 Fax: 8 446 72357 [email protected] Association member since 1999. Donatas Vaclovas SIMAITIS Director of UAB Tauragės šilumos tinklai

UAB Tauragės šilumos tinklai started its official operation in October 1968 when When constructing a 12 MW capacity biofuel burning steam boiler DE-25-225, Tauragė District boiler house was included in the former national district power plant partial steam overheating up to 225 ºC was specially provided so that generated steam Klaipėda VRE. Until then the boiler house belonged to the local centre of public utilities. could be used for the turbo generator generating electric energy. Therefore 750 KW The first boiler was officially put in to operation in 1965.Tauragė District boiler house was PTG-750 turbo generator was concurrently designed and constructed. Contractor – reconstructed twice and had 3 steam boilers DKVR-6.5/13, 2 water heating boilers KVGM- UAB Gandras Energoefektas. Autonomous operation of the turbo generator started on 19 10 and one water heating boiler KVGM-20. Total capacity of the boiler house was 60 MW. December 2007. Location of the boiler house was not very environmentally-friendly, i.e. it was in the centre Upon final commissioning of the turbo generator electricity will be generated both of the town and polluted it. The boiler station always used only fuel oil transported from for own needs and for sale. Tauragė ceramics factory and later – from Beržė district boiler house (since 1985). UAB Tauragės šilumos tinklai operates 29 km heating pipelines of different diameter In 1985, the Senior Industrial and Electrification Board commissioned a study which (40-600 mm). The carrying capacity of networks was designed with a large perspective provided for the development of Beržė district boiler house and loping it with Tauragė which now is reflected in heating pipeline route losses. 500 and 600 mm diameters of the District boiler house. In future, about 1995 it was planned to liquidate Tauragė District main connecting heating pipeline route part of which is aerial are too large. To this end, in boiler house because of large amounts of pollutants released by it to the environment. 2007, UAB Termosistemų projektai developed a project aimed at increasing the reliability However, the boiler house was not liquidated as planned because neither looping nor of DH energy supply of the town covering the preparation of thermohydraulic energy reconstruction works were performed. The looping of Beržė district boiler house with the supply model, strategy, business plan and applications for obtaining the financing of EU boiler house of the town was completed in 1990. In 1997 Beržė district boiler house was Structural Funds. The beginning of renovation of thermal networks is envisaged for 2008. extended constructing one 55 MW water heating boiler but it practically was not operated In 2007, heat networks were provided with automatized pressure control system due to its overcapacity. And recording emergency and critical pressure values at control point (13 points), notifying only in 2003, after putting the dispatcher service to the effect (via Bitė GSM connection) and localising the places into operation 8 MW biofuel of accidents on the basis of analytical data on pressure reduction in the heating pipeline burning water heating boiler route thereby improving operative correction of heat supply failures. the possibility was created to Group heat substations of UAB Tauragės šilumos tinklai were liquidated in 2002- supply heat to Tauragė Town 2003. About 60% of heat substations were renovated. from a single source – Beržė Heat prices in UAB Tauragės šilumos tinklai changed as follows: district 98.5 MW boiler house. – until February 2004 – 13.7 ct/kWh less VAT; Since then operation of Tauragė – until April 2006 – 13.09 ct/kWh less VAT; Town district boiler house was – until July 2007 – 13.65 ct/kWh less VAT; discontinued. In 2007 it was liquidated because of wear and tear of installations, low – until August 2007 – 15.95 ct/kWh less VAT. amortisation deductions, expensive staff maintenance and other reasons. Such a stable and relatively low dynamics of heat price was conditioned by the The aforementioned Beržė district 98.5 MW boiler house was too large for Tauragė implementation of above-specified measures, i.e. use of fuel wool as the price of liquid Town (compared with current capacity of 33-3.5 MW) and in 2006 fuel oil burning water fuel - fuel oil kept rapidly increasing. heating boiler of 55 MW was dismounted and replaced by 12 MW biofuel burning steam Since 2000 UAB Tauragės šilumos tinklai operates the boiler station of the former boiler. The present capacity of Beržė district boiler house is 63.5 MW. This boiler house school of agricultural machinery included in its balance (fuel – shale oil), since 2002 – has 2 DKVR-20-13 steam boilers (burning fuel oil), one DE-25-14 steam boiler (burning the boiler house of Eičiai settlement (fuel – peat), and since 2005 – Tauragė Dvaro boiler fuel oil), one DE-16V water heating boiler with DG-9 mouth (burning biofuel), and one house burning wood. DE-25/225 steam boiler with partial steam overheating (burning biofuel). In observance Loss-making operation of all these boiler stations and very insolvent residents of environmental requirements the boiler house capacity was reduced to 46.8 MW (DE- negatively affect the overall economic activities of the Company. 25-13 steam boiler was preserved). In 2008-2009 Tauragė Town will be provided with natural gas and heat networks After putting into operation 8 and 12 MW bio-boilers for the purpose of increasing will have to use natural gas instead of fuel oil which is now being used as a reserve fuel. their operating efficiency in March 2007 a 7 MW capacity condensing economizer was The Company’s employees will face new challenges as far as the use of gaseous fuel is installed in Beržė district boiler house. As a result in extremely low temperatures in concerned. Given rapidly growing prices of both gas and wood, a problem might arise winter time two 20 MW bio-boilers generate up to 25 MW capacity (25-30% efficiency) which fuel is more efficient. All this will be seen in future. I am sure that the team of our depending upon fuel quality). Consequently, the use of liquid fuel, i.e. fuel oil in Beržė employees is determined to prove that today UAB Tauragės šilumos tinklai is an important district boiler house starts only when air temperature falls to -7-8 ºC with 800-1,500 t of and perspective district heating company of Tauragė Town capable of supplying consumers fuel oil are consumed annually depending upon the season. with thermal energy of good quality. UAB Utenos šilumos tinklai

UAB Utenos šilumos tinklai Pramonės g. 11, LT-28216 Utena Tel: 8 389 63641 Fax: 8 389 63640 [email protected] Association member since 1998 (the founder). Gintaras DIRŽAUSKAS Director of UAB Utenos šilumos tinklai

When in 1998 the Company became autonomous, the development of investment This investment helped in reducing consumption of fuel used for heat generation project on the restructuring of Utena Town heat sector. All the more, Utena was already and consequently in recent years the Company’s eﬃciency increased to 97.0% compared supplied with natural gas and it was necessary to adapt the boiler house for burning with 89.1% in 2004. Therefore, irrespective of wood price increase by almost 50% in 206 natural gas. The project covered several heat supply alternatives of which two were compared with 2004 and natural gas prices – by 33%, fuel expenses for generation of selected: DH supply and fully decentralised supply of heat installing a gaseous boiler house 1 MWh went up only by 10% due to the quantity of heat generated by the recuperator. at each consumer. Utena District Council chose the alternative of a DH supply network. According to the negotiable pollution permits trading system implemented in

Such decision was conducive to sound management of the Company’s investments into Lithuania, in 2005 the limit for CO2 emissions to the atmosphere was established for the heat generation and distribution installations and boilers. In 1999-2000 group heat Company for a period of three years. As CO2 emission of the bio-boiler is not calculated the substations were liquidated replacing them with individual automatised heating and Company was able to sell unused quantities of CO2 established by negotiable pollution hot water preparation modules in buildings. Gasification of the central boiler house was permits. Income earned from sale of negotiable pollution permits was invested by the completed and seven autonomous boiler houses were constructed for the most remote Company into renovation of heating pipeline routes. consumers. When the price of fuel oil and natural gas started rapidly growing, in 2002 the On 3 August 2005, UAB Utenos šilumos tinklai signed the agreement on aid Company decided investing in fuel wood burning boiler. The project was environmental with the Ministry of Economy of the Republic of Lithuania and the Lithuanian Business and the Nordic Environment Finance Corporation (NEFCO) agreed to finance it providing Support Agency (LBSA) on allocation of LTL 3.7 million from the European Union a non-repayable direct assistance. The project consisted of two stages. State one involved Structural Funds for the project “Development and renovation of district heating installation of 10 MW wood burning mouth with a steam boiler, fuel storage facility and networks in Utena Town”. push movers. During stage two old KVGM-50 and PTVM-30 boilers were replaced with Project purpose – renovation of heating pipeline routes reducing thermal energy two effective water heating boilers 14 MW each burning gas and fuel oil. In the following losses in heating networks and guaranteeing reliability of energy supplied to consumers. years the Company also developed the strategy of installation of effective boilers. The project was successfully completed in 2007. Its value is LTL 7 million and Investment into the use of local fuel for thermal energy generation purposes 80 thousand of which support received from EU Structural Funds accounted for LTL justified itself and the Company improved its economic indicators, reduced expenses for 3 million and 533 thousand. fuel and environmental pollution taxes. During the project implementation period until 1 October 2007 the Company Balance of fuel used by the Company has changed considerably. In 2001 fuel oil in replaced and installed 9.5 km of heating pipeline routes. In 2007 technological losses of the fuel balance accounted for as much as 92% whereas in 2004 this fuel made up only heating pipeline routes made up 18% of the amount fed into networks. 13%, and fuel wood - 38%. In 2005 we ceased using fuel oil. The Company continues investing into the improvement of efficiency of heat After installation of a fuel wood burning boiler the Company’s expenses for fuel generation, reduction of atmospheric pollution and modernisation of transmission reduced. In 2004 relative fuel price was by 17% lower than in 2002. Therefore, in two years network. the Company was able to reduce heating prices for individuals by 9% - from 12.3 ct/kWh Investments realised by the Company facilitated in reducing heat generation costs in 2002 to 11.19 ct/kWh in 2004. and heat energy tariffs. Unfortunately, it was forced to increase the heating tariff because When fuel wood prices started growing in 2004, the Company decided to invest of growing prices for natural gas. into the installation of a condensing economiser of the fuel wood boiler and using a By end-2007 the Company employed 78 staffwhileduringthesameperiodof2006 condensing economiser in gaseous fuel burning boilers. it had 81 employees. For the sake of comparison, the maximum number of employees in About 18 GWh or about 10% of annual heat generation volumes of heat are 1998 was 131. generated using the condensing economiser. UAB Varėnos šiluma

UAB Varėnos šiluma J. Basanavičiaus g. 56, LT- 65210 Varėna Tel./fax: 8 310 310 29 [email protected]; www.vsiluma.lt

Association member since 2007. Virginijus GUOGA Director of UAB Varėnos šiluma

The Company was established on 28 May 2000. The Company’s founder – the The Company developed the plan of measures aimed at guaranteeing the highest possible Municipal Council of Varėna District Municipality. The Company has 25 shareholders. The efficiency of investments to achieve maximum economic effect. Thanks to the works principal shareholder of the Company is the District Municipality which holds 99.4% of accomplished by UAB Varėnos šiluma service personnel only during 2006-2007 season shares. Other shareholders are present or former employees of the Company. consumption of fuel oil was reduced by about 70% and of electricity – by 37%. UAB Varėnos šiluma provides consumers with thermal energy for heating of While reducing heat generation costs and minimising environmental pollution UAB premises and production of hot water. The boiler house in Varėna Town was constructed in Varėnos šiluma devotes great attention to its investment policy. The Company is replacing 1971. Average age of hot water main pipeline routes is about 25 years (mounted in 1966- fuel oil dangerous to the environment by biofuel, seeks automatisation of heat generation 1993). These pipeline routes are operated until present and only several sections have and renovates heating pipeline routes. been replaced. Total length of operated pipelines by end-2007 was 26.3 km. The largest In January 2007, UAB Varėnos šiluma started implementing Varėna district heating consumer of domestic hot water in Varėna Town is the residential sector and several public system upgrading project finances with the Republic of Lithuania State Budget funds objects using domestic hot water: Varėna hospital, polyclinics, two secondary schools, and European Union Structural Funds’ proceeds. The project aims at ensuring reliable and educational establishments for children, etc. In 2006 the Company had 3,876 heat effective supply of heat in Varėna Town seeking to ensure the continuity of provision of consumers, of whom 3,808 were residents. this service and maintaining DH system. Reliability, safety and quality parameters of heat The main heat transmission equipment: three steam boilers DKVR-10/13, two supplied to consumers directly depend upon condition of heat transmission networks. water heating boilers KVGM-20 burning fuel oil – high sulphur M100; steam boiler DE-25 During the implementation of this project 652.9 m of main heating pipelines and completed with wood burning furnace, 7 MW capacity water heating boiler Kaistra 7000 79 m of distribution DH networks were upgraded in Varėna Town using new technological with furnace for burning wood. elements of heat supply network – pipelines without channels provided with status DE-25 steam boiler and 7MW boiler Kaistra 7000 burning wood in chips satisfy monitoring system. Such network modernisation reduces heat losses in the entire energy demands between heating seasons and mostly during heating season. network (envisaging saving 90 MWh per year of fuel oil and 2.5 MWh electric energy) DKVR-10/13 steam boilers are used as reserve boilers (two of three boilers are preserved). and improves general stability and reliability of heat supply to the town as a result of The main types of fuel used in boiler houses are wood in chips and fuel wood accounting reduces number of accidents in hearing pipeline routes. for about 87% of the fuel balance. On 29 December 2006, the Company signed the agreement on aid for Varėna Industrial base of the Company comprises Varėna Town district boiler house District boiler house upgrading project from the European Union Structural Funds and (supplying with hot water all consumers of Varėna Town) and low-capacity boiler house State Budget of the Republic of Lithuania. Project implementation deadline is 28 April of Valkininkiai settlement railway station. The Company also operates heat networks of 2008. Total project value – LTL 875,194 (less VAT). Matuizos settlement for which thermal energy is purchased from UAB Matuizų plytinė. In the course of this project UAB Varėnos šiluma will upgrade Varėna District boiler By end-2007, the price of heat supplied by UAB Varėnos šiluma was the lowest in house increasing its heat generation efficiency (this will enable to reduce fuel, electric the region and stood at 16.79 ct/kWh less VAT. energy and water consumption to produce the same heat quantity as earlier, to increase In 2006, the great majority of UAB Varėnos šiluma administrative staff changed, transparency of heat supply to networks ensuring maximum accuracy of heat carrier’s including the Director of the Company. One of the first actions undertaken by the new parameters) and guarantee public confidence in activities carried out by UAB Varėnos administrations was performance of internal technical and financialauditoftheCompany. šiluma. The programme of modernisation includes installation in the boiler house of new boiler circulation and feed pumps with belt drives, advanced and modern boiler KVGM-20 automatisation equipment, upgrading of the existing DE-25-14 wood-chip boiler, installation of new automatic network temperature and pressure control devices, heat exchangers, modernisation of water-chemical preparation sector conforming to the requirements established for modern technologies. UAB Varėnos šiluma pursues the following goals: – to improve general production efficiency; – to limit emissions of pollutants from the boiler house; – to reduce the cost of generated heat and heating price growth rates; – to supply consumers with required amount of energy; – to improve maintenance and service quality; – to enhance reliability of installations. Our Company will further aim at reducing heating prices while improving heat supply, service and maintenance quality. UAB Vilniaus rajono šilumos tinklai

UAB Vilniaus rajono šilumos tinklai Kranto g. 24, LT-15177 Nemenčinė, Vilniaus rajonas Tel: 8 5 238 12 75 Fax: 8 5 238 12 77 [email protected]; www.vrst.lt Association member since 1998 (the founder). Stanislavas POČIKOVSKIS Director of UAB Vilniaus rajono šilumos tinklai

UAB Vilniaus rajono šilumos tinklai was set up on 4 August 1997 and registered of 1.1 m3 capacity and about 150 individual household waste containers have been with Vilnius District Municipality after reorganisation of the special purpose joint-stock erected. The number of users and servicing area keeps growing. company SP AB Lietuvos energija. The principal activities of the Company are generation The Company provides multi-dwelling buildings maintenance services. A and supply of thermal energy to part of consumers in Nemenčinė Town (about 80%). The commission set up from certified engineers twice a year examines the main constructions Company operated three boiler houses in Nemenčinė Town with 10 MW total installed of all buildings, engineering installations of public use and the premises and draws up capacity. Shale oil was used as fuel. The length of heat supply pipelines was only 2-pipe examination acts. 5.2 km system. However, in a couple of years our Company implemented renovation The Company also provides other services to different entities. For the purpose of production equipment, developed fuel sector of boiler houses and constructed of rendering these services the Company used its fixed and current assets aimed at the mechanical shops. In one of the boiler stations wastewater and rainwater treatment performance of its principal activities. Other services include rent of motor vehicles, rent of a facilities were installed. Additional consumers were connected to DH pipelines. The tractor-excavator, road grading, removal of wastewater of enterprises and private persons. Company carried out construction works of block heating networks in Nemenčinė Town. The above-listed services are provided to enterprises and residents in the Neighbourhoods 9 electrode boiler houses were liquidated and heat consumers were connected to DHT of Nemenčinė, Riešė, Buivydžiai, Sužionys, Maišiagala, Sudervė, Paberžė, Bezdonys and sources. All these measures considerably increased generation of thermal energy. In other neighbourhoods of Vilnius District. 2004-2006 gasification of six district boiler houses was completed and from 1 January During 2006 the Company carried out reconstruction works of two public bath 2006 the Company operates 15 boiler houses of which 7 burn gas and 8 – solid fuel. houses in Paberžė village and Nemenčinė town according to the decision adopted by Present installed capacity of boiler houses amounts to 20 MW generating 20,000 MW Vilnius District Municipal Council. of thermal energy every year. Decisions of the Company’s shareholder - Vilnius District Municipal Council will have the The Company also engages in maintenance of heating systems of objects supplied greatest impact on the Company’s activities in developing heat and public utilities sector. with heat. Maintenance of heating systems of buildings is carried out in those objects Considering rise in fuel prices, growing expenses for repair and operation works, and to which heat is supplied by our Company. The area heated by the Company totals increase of salaries the Company is planning reconstruction works covering installation of 101,463 m3. a new gas-burning 2.5 MW public boiler house at Vasaros st. 7, Nemenčinė (providing Since January 2006 the Company operates 23 water body (35 drillings) and with heat 2/3 subscribers of Nemenčinė Town). 12 treatment facilities. Total number of subscribers is 2,270 of whom 2,052 are residents. During 2007 the Company completed renovation works and installed compensating During 2007 the Company carried out great work in improving the quality of drinking economisers in the boiler houses in Kreivalaužiai village, Nemenčinė Neighbourhood, and water and building capacities of wastewater discharge facilities. The Company installed in Kranto st. 24, Ežero st. 3 and Vasaros st. 7 in Nemenčinė. The coal-burning Rudausiai 4 water iron-manganese removal stations. village boiler house operating without staff was completely reorganised. A new boiler In implementing Decision of Vilnius District Municipal Council of 29 December was installed in the boiler house of Bezdonys village. Gasification works were completed 2005 on Reorganisation of UAB Riešės komunalininkas, UAB Nemenčinės komunalininkas in the boiler house of the kindergarten of Nemenčinė Town. All heating pipeline routes and UAB Vilniaus rajono šilumos tinklai, the Company took over additional amount of in Raudondvaris village Riešė Neighbourhood (0.5 km) were replaced as well as part of generation sources and heat supply facilities. heating pipeline route (0.2 km) in Rudausiai village, Nemenčinė Neighbourhood. The Company additionally acquire public utilities equipment and from July Our Company employs 104 staff of whom 4 employees permanently working in 2006 started implementing container waste collection system attracting new users the heat sector and 20 operators and stokers. Implementation of the main tasks of the of this system. Implementation of container waste collection system improved waste Company will depend upon benevolent cooperation and understanding of Vilnius District management accounting accuracy. More than 200 collective household waste containers Municipality – the principal and sole shareholder of the Company. UAB Vilniaus energija

UAB Vilniaus energija Jočionių g. 13, LT-02300 Vilnius Tel: 8 5 2667199 Fax: 8 5 2667339 [email protected]; www.vilniaus-energija.lt Association member since 2002. Jean SACRESTE President of UAB Vilniaus energija

UAB Vilniaus energija – march towards a modern capital In place of 192 group heat substations over 2,600 modern automatised heat For the sixth year already the largest in Lithuania heat sector of Vilnius is managed substations were installed in multi-dwelling buildings of Vilnius. UAB Vilniaus energija according to the advanced methods. Since 2002 UAB Vilniaus energija supplying heat to allocated more than LTL 70 million for their installation. Total investments of the Company the capital and renovating the heat sector relies on experience of long-years of its main into renovation of heating stations in the capital exceed LTL 83 million. company – Dalkia, which is the largest in Europe group of energy service companies. Investments increase operating efficiency Successful implementation or renovation programme UAB Vilniaus energija is continuously looking for solutions how to improve its UAB Vilniaus energija operating on the basis of heat sector leasing model is operating efficiency through investments. In 2003, the Company constructed has mains successfully implementing Vilnius heat sector renovation investment programme. The connecting Vilnius Power Plants Nos. 2 and 3. This solution considerably reduced the Company has already renovated large part of heating pipeline routes and heating stations Company’s expenses for gas used in the Power Plant No. 2. operating in the capital for more than LTL 100 million. Investments of the Company into In 2007, UAB Vilniaus energija started designing works of the main heating pipeline upgrading of co-generation power plant and boiler houses exceed LTL 160 million. During route intended for Grigiškės. Having constructed this new heating pipeline route, the this period UAB Vilniaus energija also replaced or newly installed 4,400 heat meters for Company will be able to offer to Grigiškės inhabitants heat generated by it and give up LTL 7.2 million. expensive thermal energy which until present is being purchased from AB Grigiškės. Investing LTL 16 million the Company will save about LTL 3 million per year. Goup heat substations were replaced by modern heat substations In 2007 the Company closed down the last loss-making group heat substation in The basis of operation – safety the capital. It was replaced by modern heat substations which enable residents to control The greatest attention of UAB Vilniaus energija is devoted to reliability and safety the heating regime and hot water temperature by themselves and to decide when the of heat supply. The Company invested over LTL 1.7 million into the mobile boiler house heating season should begin and end. used as a reserve energy source in case of interrupted heat supply. The mobile boiler house enables guaranteeing continuous hot water supply service to the residents of the capital. 4.5 MW diesel-burning mobile boiler house can be used in different parts of the city.

Towards energy independence UAB Vilniaus energija is actively investing in the development of renewable energy sources. Use of local biofuel reduces amounts of combustion generated pollutants and carbon dioxide emissions causing greenhouse eﬀects. In addition, it also increases independence from natural gas which is becoming more and more expensive supplied by the single importer – Russia. The main event of 2006 in the heat sector of Vilnius was the start of the largest in the Eastern and Wstern Europe bio-boiler. 60 MW capacity boiler house into which UAB Vilniaus energija has invested LTL 40 million enabled the Company to reduce even by 7% annual consumption of natural gas. The boiler house can generate 9 % of thermal energy supplied to the capital or 50% of hot water after heating season.

The most important thing is the quality of services Relying on experience of the global French company Dalkia, UAB Vilniaus energija pays special attention to the improvement of the quality of services provided to its customers. The Company has set up three customer servicing centres and designed one heating specialist-manager to each building services by it. From the outset of the Company’s activities the number of complaints of UAB Vilniaus energija customers has reduced twice. In the opinion of foreign colleagues of UAB Vilniaus energija, the most innovative solution of the Company is the system oﬀered toVilnius residents which allows installing for reasonable price individual heat control and accounting system in their ﬂats. The 43

14 September 2007. EFIEES – LDHA Forum participants are visiting VPP-2.

27 October 2006. The event in Siemens Arena on the occasion of starting a bio-boiler in VPP-2.

Energy Efficiency Fund set up by the Company finances the major part of funds required for system installation purposes. Different cities of the European Union Member States are interested in the possibility of setting up similar funds. The innovative idea of UAB Vilniaus energija was enthusiastically welcomed by Siemens Company – the manufacturer of individual heating control equipment. UAB Vilniaus energija discrages its financial obligations closely following the schedule established in the heat sector leasing agreement and continues carrying out its works started in Vilnius; from the very outset of its activities until present the Company has already implemented the major part of its investment heat sector renovation programme. UAB Alfa Laval

UAB Alfa Laval M. K. Čiurlionio g. 66, LT- 03100 Vilnius Tel: 8 5 215 0091 Fax: 8 5 2150093 [email protected]; www.alfalaval.com Association member since 2002. Jurga KIŠŪNAITĖ Director of UAB Alfa Laval

UAB Alfa Laval is the leading provider of specialised products and engineering Separation solutions of the world. Our equipment, systems and services are aimed at helping our UAB Alfa Laval is a leader in the area of separation technologies from the very outset customers to optimise the efficiency of their processes now and in future. of its activities in 1883 when the revolutionary invention of Gustav de Laval – the cream We help our customers with heating, cooling, separating and transporting products, separator was out into operation. Since then we continuously engage in the development e.g., oil, water, chemicals, beverages, foodstuffs, starch and pharmaceuticals. Our orga- of innovative separation products and solutions which have become important milesto- nisation operating at the global level maintains close cooperation with customers from nes in numerous industries. UAB Alfa Laval is the world’s largest provider of separation almost 100 countries helping them to be the first. solutions occupying large market shares in different industries. During over 100 of years UAB Alfa Laval changed many things; however its main The range of products is based on quick-speed separators, decanters and filtersused competences remained the same: heat transmission, separation and liquid handling. Our for separation of fluids from each other or for removal of solid particles from fluids.These extensive knowledge in these areas help our customers in heating, cooling, separating products in the industry of food and other products are used for miscellaneous functions: and transporting products, e.g., oil, water, chemicals, beverages, foodstuffs, starch and in vessels they are used for fuel and lubricating oil purification, in oil extraction industry pharmaceuticals. they are used to separate oil and water and in the manufacturing industry – for industrial fluid and wastewater treatment. Heat transmission Heating and cooling – are the main parts of many industrial processes. These Management of fluids functions must be carries out saving energy and employing particularly effective heat Food, biochemical and pharmaceutical industries are subject to stringent safety and transmission solutions. Alfa Laval know-how in the area of heating technologies are relied hygiene requirements. Safe and effective transportation and routing of fluids is of particu- upon all over the world. We provide a wide range of heat exchangers intended for the lar importance here. Reliable pumps and valves must guarantee timely supply of required works of heating, cooling, evaporation and condensation. We are global leaders in the processing installations with necessary fluids. area of plate and spiral heat exchangers and offer the heating equipment of the widest UAB Alfa Laval is a global leader in the manufacturing of sanitary fluid handling range on the market. equipment. We manufacture different pumps, valves and connections. Our pumps are Buildings are heated and ventilated using heat exchangers of Alfa Laval. The main adapted to fluids of different viscosity level and particle size and our valves and connec- users of heat exchangers are companies of chemical and processing industry as well as tions conform to stringent hygiene and precision standards whatever is a final product – a cooling factories and mechanical engineering industries. We also manufacture large heat beverage, viscosive foodstuffs, lotion, plasma, protein solution or pills. exchangers for navigation and energy generation industries. Heat exchangers in vessels are used for different purposes from cooling of diesel engines to air conditioning. UAB Ekotermijos servisas

UAB Ekotermijos servisas Karo ligoninės g. 19-2, LT-44352 Kaunas Tel: 37 424514, 409350 Fax: 37 424516 [email protected]; www.ekotermija.lt Association member since 2002. Visvaldas ŠAVELSKIS Director of UAB Ekotermijos servisas

UAB Ekotermijos servisas was set up on 18 February 1998 by a group of like-minded successfully combining theoretical knowledge with industrial boiler house installation initiators who engaged in joint applied research works in Kaunas Technology University. and operation practices. During almost 10 years of operation UAB Ekotermijos servisas carried out many Employees of the Company are the main factor guaranteeing the quality. outstanding works in the industrial and energy heat sector and provided numerous Considering this the top management of the Company provides training to upgrade innovations in the areas of environmental protection and energy saving; an interesting professional qualification of its employees and evaluates them according to the quality example here might be about 95,000 MWh total amount of heat generated by condensing of their performance and achievements, creates conditions for effective realisation of economizers – reserve heat consumption devices installed by UAB Ekotermijos servisas; employees’ skills and encourages their self-expression. the aforementioned amount corresponds to the average annual amount of heat fed into Employees of UAB Ekotermijos servisas make a great team both, at work and after the network by UAB Tauragės šilumos tinklai; total capacity of steam and water heating business hours when they entertain together. UAB Axis Industries Kazlų Rūda branch boilers provided and installed in the companies of Lithuania and Latvia is only a little and UAB Ekotermijos servisas together participated in the Team Building programme. smaller than the total thermal energy capacities (about 500 MW) installed in all boiler Participants of the Team Building event had a good time together and established close stations of AB Šiaulų energija. contacts with each other which serve the basis for future corroboration. We expect At present UAB Ekotermijos servisas supplies equipment, implements projects and that in the coming years these teams engaging in similar activities will maintain their renders services in more than one hundred Lithuanian companies. relationships seeking to conquer by joint effort both, Lithuanian and foreign markets in Given the confidence of customers in timely works of good quality of UAB which they have been active already for a long time. Ekotermijos servisas and high qualification of its employees, we can expect that this Company will continue successfully increasing the volumes of its works providing a wider range of equipment and services to Lithuanian as well as foreign companies. In August 2007, UAB Axis Industries acquired 100% of shares of a successfully operating and perspective company UAB Ekotermijos servisas. UAB Axis Industries engages in differentactivities,includingboilerhouseconstruction,designandreconstructionworks, while UAB Ekotermijos servisas, in addition to sales of gas boilers and their spare parts and installation and management of thermal energy objects and heat technology processes, also specialises in thermal energy supply, completion, commissioning-adjustment as well as in service provision and maintenance areas, successfully performs energy audits of industrial enterprises and carries out project feasibility studies. Employees of UAB Ekotermijos servisas are proud of their basketball team which was UAB Ekotermijos servisas has 39 employees. A young and perspective team of set up in 1999 and not only belongs to the basketball league of Švyturys-KBL companies UAB Ekotermijos servisas boasts not only of acquired university education, but also of but also can boast of important victories. In 2006-2007 the team was the second in the their colleagues with scientific doctor’s degrees. This helps UAB Ekotermijos servisas in League of Kaunas companies and in 2007 it won the Cup of Energy Sector Specialists. UAB Fortum Heat Lietuva

UAB Fortum Heat Lietuva S. Žukausko g. 21, LT-08234 Vilnius Tel: 8 5 243 0043 Fax: 8 5 278 8221 [email protected]; www.fortum.lt Association member since 2005. Vitalijus ŽUTA General Manager of UAB Fortum Heat Lietuva

UAB Fortum Heat Lietuva, former UAB Suomijos energija, has been operating in Lithuania since 1999. Since 2006, 100% of the Company’s shares belong to Fortum Corporation. The change of the principal shareholder was anticipated because Fortum is going to develop its business in the thermal energy market of Lithuania. The entry of Fortum to Lithuania enables us to offer municipalities and industrial clients competitive solutions for self- supply with thermal energy using biofuel, peat and domestic waste. Use of local fuel becomes more and more urgent as gas prices keep growing, because it facilitates in maintaining stable prices of thermal energy. Another benefit is creation of new jobs in the production of biofuel and peat. Fortum shares are quoted on Helsinki Stock Exchange. In 2007, sales of the Company amounted to EUR 4.49 billion. Average staff number was 11,800. The greatest attention in heat business of Fortum is paid to DH supply, generation of industrial steam and energy from household and industrial waste. Fortum’s customers are industrial enterprises, municipalities and DH consumers. Fortum manages and maintains 24 co-generation power plants and several hundreds of boiler houses in the countries of Northern Europe, Baltic States and Poland. The Company is a leading DH supplier in the countries of Northern Europe. In 2007 heat energy sales amounted to 25TWh, of which in Shareholdings of UAB Fortum Heat Lietuva: Sweden and Finland – 9.6 and 10.5 TWh respectively. – UAB Fortum ekošiluma – 100%; The goal of UAB Fortum Heat Lietuva is to develop heat and electric energy – UAB Fortum Joniškio energija – 66%; generation business using advanced technologies. – UAB Fortum Švenčionių energija – 50%; – AB Klaipėdos energija – 4.9%.

UAB Fortum Heat Lietuva devotes great attention to optimisation of performance and improvement of ﬁnancial and economic results of the companies under its control (UAB Fortum Švenčionių energija and UAB Fortum Joniškio energija). The Company continues investing into the heat sector and better organisation of activities of these companies. Fortum Corporation aim is to become a model company in the area of occupational safety. During past year there were no accidents in the group of companies of UAB Fortum Heat Lietuva. Employees assume responsibility both, for themselves and for their colleagues. On 22 December 2007, the group of companies controlled by UAB Fortum Heat Lietuva was certiﬁed according to the requirements of the quality, environmental protection and occupational safety and health management system conforming to LST EN ISO 9001:2001, LST EN ISO 14001:2005 and LST 1977:2005 (BSI-OHSAS 18001:1999) standards. UAB Gandras ENERGOEFEKTAS

UAB Gandras ENERGOEFEKTAS Veteranų 5, LT-31114, a/d 11 Visaginas Tel. /fax: 8 386 70424 Tel: 8 386 71481, 73197, 73273 [email protected]; www.gandras.net Association member since 2006. Dmitrij PODČERNIN General Manager of UAB Gandras ENERGOEFEKTAS

Design and supply: A strong and friendly team is focused on the achievement of optimal results. We will – energy equipment and energy objects transferring for continued operation; solve your problems impeccably to make you select us during future tenders. – steam and gas turbines, hydro-turbines; During long years of operation the following companies have become the permanent – combined electricity and heat generation facilities; customers of UAB Gandras Energoefektas: AB Anykščių vynas (Lithuania); AB Kalnapilis – liquid pumps of all types and their control systems; (Lithuania), AB Klaipėdos energija (Lithuania), AB Panevėžio energija (Lithuania), – closing, control and protective fittings; AB Šiaulių energija (Lithuania), AB Žemaitijos pienas (Lithuania), AB Rokiškio sūris – mixers, filters, shredders; (Lithuania), VĮ Visagino energija (Lithuania), AB Utenos trikotažas (Lithuania), AB Utenos- – automatisation of technology processes of all complexity levels; Švyturio alus (Lithuania), AT Ventbunkers (Latvia), SIA Ventspils Terminals (Latvia), SIA – design, preparation and installation of lighting systems of residential and Parventas Siltums (Latvia), SIA Daugavpils siltums (Latvia), ФГУП Kaliningrado uosto industrial buildings; naftos bazė (Russia), etc. – reconstruction and upgrading of operating lighting systems enabling to reduce For the purpose of selecting the sites for the construction of energy generation electric energy consumption by two times and more. plants we prefer using already existing sites of capital industrial buildings. Countries manufacturing our offered equipment: England, Spain, Sweden, Japan, We perform analyses of extensive design solutions and building construction Russia, the Ukraine, etc. scheme and select technological installations and pipelines. UAB Gandras was established in 1989 in Visaginas. Irts Director General is Dmitrij In the stage of construction organisation we make a geodesic photo of the existing Podčernin. The Company is active in the Baltic and Russian markets. territory and geological soil surveys. On the basis of geological survey results we carry out Providing ENERGY EQUIPMENT and selling energy ECONOMY we REDUCE design and expertise of all types of foundations used for technological installations and PRODUCTION COSTS of our customers. All this is achieved through design, installation and building structures (massive, pole, etc.). employment of modern high quality and reliable equipment and staff training. We cooperate with installation and construction organisations of narrow Our aim is high quality of output and provided services satisfying the needs specialisation with extensive work experience and carry out control of the whole project. of customers to the full extent. Our profile is ENERGY GENERATION AND ENERGY SAVINGTECHNOLOGIES! UAB Grundfos Pumps

UAB Grundfos Pumps Smolensko g. 6, LT-03201 Vilnius Tel: 8 5 2395 430 Fax: 8 5 2395 431 [email protected]; www.grundfos.com Association member since 2001. Tomas JORUDAS Sales Manager of UAB Grundfos Pumps

According to UAB Grundfos Pumps Sales Manager Tomas Jorudas “continuously growing prices of energy resources and practical life preferred by Lithuanian people open the marker for us”.

Grundfos in Lithuania – focus on continuous growth Grundfos Pumps – a representative office of Grundfos established in Vilnius, Smolensko Street counts its eighth year of operation, but the founding date of the Concern is deemed to date back to the year 1945. The trademark of Grundfos is one of the most famous in Lithuania and many Lithuanians associate it with reliability and Scandinavian quality. “These facts make us feel happy and call for continuous improvement of our performance”, - says UAB Grundfos Pumps Sales Manager Tomas Jorudas. In his opinion it is the growth of prices of imported energy resources which opens the market for energy- saving economic Scandinavian pumps. “Our performance of the previous year already exceeded all forecasts and in 2008 we are also expecting similar growth”, - said T. Jorudas. In order to satisfy the needs of its customers, Grundfos Pumps is also developing its team. During past years Grundfos manufactured about 10 million pumps of different designations. A distinguishing feature of Grundfos pumps is the highest quality, introduction of the state-of-the-art technological achievements, precision of the manufacturing process itself and conformity with the highest ecological requirements. Pumps manufactured by Grundfos now are used practically all over Lithuania. They are used for heating, supply of subsoil water, in sewage and wastewater systems, for fire extinguishing purposes, ventilation, cooling and in technological processes.Well- developed circulation pumps are used in heat supply, ventilation and air-conditioning systems of residential buildings, office buildings and hotels. In industry they are used for technological processes and maintenance of factories and also as important units for other installations. Water supply and sewage segments benefit from a wide range of pumps intended for irrigation, greenhouses, municipal, private and industrial water supply and wastewater systems offered by Grundfos. Moreover, Grundfos pumps employees render technical consultations and maintenance services of pumps and their systems. Grundfos aims at becoming a permanent partner to all customers both all over the world and in Lithuania. Grundfos priorities – responsibility, openness, reliability, transparency and trend of continuous growth. Lithuanian Technical Insulation Contractors Association

Lithuanian Technical Insulation Contractors Association Ringuvos 65A, LT-45245 Kaunas Tel: 8 37 340448 [email protected] Association member since 2006. Eugenijus SLIŽYS President of the Lithuanian Technical Contractors Association

Lithuanian Technical Insulation Contractors Association (LTICA) was established on 7 No- vember 2007. At present the Association members are 8 companies which employ about 900 staff. These companies include industrial enterprises operating in the area of technical insulation and manufacturers of insulation materials. The following companies are members of LTICA: UAB Termoizola, UAB Paroc, UAB Rockwool, UAB Manonas, UAB Termomontažas, UAB Izola, UAB Zigmas and UAB Cheminė apsauga. LTICA is a member of the European National Insulator Association (FESI) uniting companies operating in the area of technical insulation, both, industrial and manufacturers of materials, of all European countries and of the Lithuanian District Heating Association (LDHA). In addition, LTICA participated in drafting the rules for the installation of heat transmission networks and heat insulation the official version of which was published in “Valstybės žinios” (Official Gazette) by Order of the Republic of Lithuania Minister of Economy of 5 May 2007. represent the companies’ interests before bodies of state management and administration, The principal trends of LTICA activities include technical insulation, fire insulation, guarantee the conformity of technical insulation with quality requirements and standards noise insulation and asbestos decontamination. The purpose of the Association is to of the European Union, maintain links with other national and international associations, implement specialist training and skills upgrading programmes, etc. LTICA goals and functions include providing proposals to the bodies of state management and administration of the Republic of Lithuania regarding the adoption of new legislation and amendments to applicable legal acts, participating in the drafting of laws and other legal acts pertaining to the activities of technical insulation companies, exchanging information and experience in implementing new technologies of insulation works, analysing the market of insulation works, preparing recommendations and providing information to the Association members, organising scientific- practical conferences and other events, developing relationships with international organisations, etc. UAB LOGSTOR

UAB LOGSTOR Raguvos g. 7, LT-44275 Kaunas Tel: 8 37 409440 Fax: 8 37 409441 [email protected]; www.logstor.com Association member since 2002. Gintautas BARILA Director of UAB LOGSTOR

Our Company started its activities in Lithuania when Asea Brown Boveri Concern, LST EN 488:2004, LST EN 489:2004. During 40 years of practical operation and continuous which at that time also included the Company ABB I.C.Moller A/S of the Kingdom of improvement LOGSTOR Group of companies accumulated extensive experience in the Denmark – one of the leading industrially pre-insulated pipe system manufacturers in the manufacturing of DH pipelines and their component parts. Over 150,000 km of pipelines world established its representative office in Vilnius. In the same year the installation of installed all over the world testify to high reliability and resistance of LOGSTOR system. DS350 heating pipeline route –the first project submitted by our Company was launched All system components are simple and reliable, guaranteeing resistance to all types of in Vilnius, Saulėtekio Street. environmental effects. The mounting of LOGSTOR system allows saving mounting costs With the areas of the Company’s activities developing, in 1993 a separate subdivision because installation of pipelines is easy and their use is simple. Estimated useful life of was set up in Kaunas specialising in supply of pipe systems for heating pipeline routes. the system is minimum 30 years. Each newly developed component is carefully tested in The Company successfully participated in the projects finances by the EBRD (European order to get reasonable assurance of its longevity and resistance. Trouble control system Bank for Reconstruction and Development) and in 1994 started supplying materials for installed in pipelines enables regular monitoring of their condition and informing about reconstructions of heating pipeline routes in the cities of Vilnius, Kaunas, Klaipėda, Šiauliai, possible irregularities. As a result, possibilities are created for avoiding serious malfunction Panevėžys and other towns of Lithuania. Also, in 1994 with the help of the Danish ABB and huge losses. All kinds of pipeline repairs are easy, quick and effective. Finance branch, the Company obtained soft interest-free loans and started installation of The development of DH supply all over Europe, in particular in Scandinavia, is DS800 and DS600 heating pipeline route with a pumping-station in Vilnius and DS600 based on economic and environmental estimates. Due to high quality and long-lasting reserve heating pipeline route in Šiauliai. One more and the largest project implemented insulation of LOGSTOR pipes energy losses are reduced to the minimum concurrently by our Company in Lithuania was construction of DS800 main heating pipeline route of saving energy resources and protecting environment. 3.7 km length which was started in 1996 and finished in 1997. In implementing the process of merger of heavy energy (Power) segments of ABB and ALSTOM Concerns, on 1 January 2001 UAB ABB HD branch was reorganised into UAB ALSTOM Power and from 1 August 2003 – into UAB ALSTOM Lietuva. These developments did not change the Company’s specialisation – it remained proactive in working with DH companies of Lithuania, maintained and raised the qualification of specialists and the length of pipelines supplied by the Company grew to 60 km of pipes per year. Another phase of the Company’s history started in 2005, when shares of ALSTOM Power FlowSystems A/S (former ABB I.C.Moller A/S) were purchased by Danish investment funds which previously also exercised controlled over another market leader – the Danish company Logstor Ror A/S. The Company LOGSTOR A/S set up after merger of these companies became the largest manufacturer of industrially pre-insulated pipe systems in the world and the developer of technologies. The present group of LOGSTOR consists of 8 industrial companies set up in Denmark, Sweden, Finland and Poland, 10 sales enterprises in Denmark, Sweden, Finland, Poland, Lithuania, Germany, Holland, France, Austria, Switzerland and Italy and 3 joint ventures established in South Korea, China and United Arab Emirates. The Company’s production is distributed in almost 50 countries. In the nearest future the Company envisages constructing another 3 industrial companies in Russia and Balkans. The Group annually manufactures over 10,000 km insulated pipes and its planned turnover for 2007 was EUR 300 million (over LTL 1 billion). The Company has more than 1,400 employees. LOGSTOR production, in addition to district heat supply, is used for industry purposes (technological, steam, liquefied gas, ammonia, etc. pipe systems), oil pipelines, district conditioning systems and navigation. After change of UAB ALSTOM Lietuva owners, on 6 October 2005 the Company’s name was changed to UAB LOGSTOR. Until 31 December 2007 in Lithuania our Company supplied about 560 km from DN20 to DN800 mm system pipelines to LOGSTOR A/S (until 15 October 2000 designated as ABB I.C.Moller A/S and until 18 August 2005 – as ALSTOM Power FlowSystems A/S). LOGSTOR pipe system is registered in Lithuania and conforms to the approved standards for insulated pipes LST EN 253:2004, LST EN 448:2004; AB Vilniaus šilumos tinklai

AB Vilniaus šilumos tinklai Kudirkos g.14, LT-03105 Vilnius Tel./fax: 8 5 210 74 30 [email protected]

Association member from 1998 (the founder). Bronius CICĖNAS General Manager of AB Vilniaus šilumos tinklai

14 February 1903. Vilnius public central power plant was put into operation in 1980. Beginning of construction works of the third combined heat and power plant Vilnius with first district heating system installed in its premises. (CHP-3) with the first energy generation unit was put into operation in 1984. Operation of 1948. Beginning of construction works of Vilnius combined heat and power plant the second energy generation unit was started in 1986. No. 2 (CHP-2). 18 January 1985. Operation of the heating pipeline route No. 1 connecting Vilnius 27 September 1951. Commissioning of the first (12,000 kW) turbine of the new CHP-2 and CHP-3 of 5.5 km length and 1,000 mm pipe diameter was started. CHP-3 Vilnius CHP-2. started supplying heat to the city. 1955. Vilniaus šilumos tinklai started supplying district heating to industry and to 15 October 1986. 48 group heat substations with collectors were transferred to the the first 5 residential buildings and a kindergarten near CHP (Savanorių Avenue). building sector balance of the city. November 1957. Established Administration of Heating Networks later reorganised 18 January 1988. Operation of the heating pipeline route No. 2 connecting Vilnius into the Company Vilniaus šilumos tinklai started developing the infrastructure of heating CHP-2 and CHP-3 was started with the communication bridge over the river Neris. networks. CHP-2 thermal capacity amounted to 48 Gcal/h. 41 subscribers were connected April 1993. Installation of thermal energy meters was started in residential to the heating pipeline route. Construction of district boiler houses was started in separate buildings. parts of the city. 16-17 January 1995. The first repairs in the history of energy sector of Lithuania 1961. DH supply was started to the Old Town of Vilnius. were carried out in the operating and not disconnected heating pipeline route (1,200 mm 1962-1965. Construction of group heat substations was started and 4-pipe systems diameter) during which under -10 ºC outdoor air temperature incisions were made in 108 were introduced. mm diameter route pipes. The works were carried out by AB Šilda employees in concert 20 November 1968. Vilniaus šilumos tinklai of the Senior Energy Board No. 530 with the Danish experts. started realisation of thermal energy. July 1997. The Company Vilniaus šilumos tinklai was reorganised into SP AB Vilniaus šilumos tinklai. In addition to the base heating networks company of Vilnius Vilniaus šilumos tinklai included 9 branches: Vilnius co-generation plant (CHP2-CHP-3) and heating networks of Ignalina, Kaišiadorys, Molėtai, Šalčininkai, Širvintos, Švenčionys, Trakai and Ukmergė. 21 August 1997. DH sector of the power plant and Vilnius City after reorganisation of the heat sector of Lithuania was separated from AB Lietuvos energija and its management was transferred to Vilnius City Municipality. Vilnius co-generation plant (CHP2-CHP-3) became a branch of SP AB Vilniaus šilumos tinklai. Vilniaus šilumos tinklai data of 2000: During stage two of decentralisation of the heat sector after splitting of SP AB Vilniaus šilumos tinklai 8 district companies were set up: Ignalina, Kaišiadorys, Molėtai, Šalčininkai, Širvintos, Švenčionys, Trakai and Ukmergė heat sytems. 2001. Total length of all operated heat networks (without hot water) – 489 km. Disposable capacities of heat sources amounted to 2,432 MW. Thermal energy supplied to consumers amounted to 2,385.3 MWh, of which residents were provided with 1,702.2 MWh. DH supplied to residential fund covered 8,676 m2. Total of about 90% of buildings in Vilnius City were connected to DH system. 1 April 2002. SP AB Vilniaus šilumos tinklai, Vilnius City Municipality, UAB Vilniaus energija and the French Company Dalkia, the sole shareholder of the Company, signed the lease agreement. According to its conditions UAB Vilniaus energija took over into its possession the assets of SP AB Vilniaus šilumos tinklai for a period of 15 years, undertaking to discharge its obligations according to agreements concluded with heat consumers, to guarantee regular and reliable supply of steam necessary for heating of thermal energy and preparation of hot water, to develop and modernise heating and hot water supply systems and to erect modern individual heating stations in multi- dwelling buildings. Public Enterprise Technical Supervision Service

Public Enterprise Technical Supervision Service Naugarduko g. 41, LT-03227 Vilnius Tel: 8 5 213 1330 Fax: 8 5 264 7150 [email protected]; www.tpt.lt Association member since 2002. Jonas ŠIMKŪNAS General Manager of PE Technical Supervision Service

The Technical Supervision Service was founded by the act No. 955 of the Government In developing the spheres of notification, in 2005 the Service was notified within of the Republic of Lithuania of 16 December 1992 following the reorganisation of the the frameworks of EU Directives 87/404/EEC (simple pressure vessels), 97/23/EC Labour Safety Department under the Government of the Republic of Lithuania and (pressure vessels) and 98/37/EC (safety of machinery) and in since 1 January 2001 a budgetary institution the Technical Supervision Service under 2006 – also within the framework of Directive 1999/36/EC the Ministry of Social Security and labour was reorganised into the public institution (transportable pressure equipment). for assessing the technical condition of potentially dangerous equipment by Resolution Being the authority notifiedaccordingtotherequirementsof5directivesmentioned No.1408 of the Government of the Republic of Lithuania of 4 December 2000 and operates above, the Service carries out the functions of the notified controlling authority assessing as an autonomous and independent organisation which carries out the assessment of conformity of seamless gas cylinders and welded liquid petroleum gas cylinders. equipment technical condition. The Technical Supervision Service was assigned the identification No. 1399 by Supervision of respective equipment in Lithuania was started 80 years ago and the Directorate-General for Enterprise and Industry of the European Commission. Upon therefore the Technical Supervision Service is rightly considered as continuing the work assessment of conformity of respective equipment with technical regulations requirements of the Technical Inspectorate established in the independent Lithuanian in 1924. Until equipment CE 1399 mark is assigned to the equipment. restoration of independence in Lithuania supervision of potentially dangerous equipment In implementing the EU directives for the purpose of full conformity assessment was performed by Industry and Mining Work Safety Supervision Service and other of equipment the Testing and Analysis Laboratory was set up in the Service which organisations which employed a great number of the present specialists of the Service. performs destructive and non-destructive tests and analyses of metals and welds as The missions and functions of the Technical Supervision Service, it being an well as the Certification Department which carries out the certification in observance of authorised institution for assessment of equipment technical condition, are established in requirements of legal acts of the European standards and approval of welding procedure the Republic of Lithuania Law on Surveillance of Potentially Dangerous Equipment. specifications according to EU directives transposed by respective technical regulations. In its activities while carrying out inspections of technical condition of equipment, The Testing Laboratory and the Certification Department also carry out the certification of the Service is guided by the aforementioned law and secondary normative acts qualifications of personnel in line with requirements of EU directives. – resolutions of the Government of the Republic of Lithuania, normative legal acts regulating installation, safe use and maintenance of the above referred equipment (equipment regulations) and technical documentation of equipment. During 15 years of operation the Service has developed the required material base and a friendly team of experienced specialists, accumulated extensive experience in the area of inspection of the technical condition of equipment, created and implemented quality assurance system in observance of requirements of respective standards, guaranteeing its functioning and operative fulfilment of equipment owners’ requests within mutually agreed time limits and maintaining confidentiality of results. The Technical Supervision Service was accredited in observance of requirements of the standard LST EN ISO/IEC 17020 as the Type A Inspection Body, which conducts the assessment of potentially dangerous equipment and its facilities. The Testing Laboratory of the Service was accredited in observance of requirements of The first accreditation certificate No. LA 06 001 was issued the standard LST EN ISO/IEC 17025 to carry out tests of potentially dangerous equipment, on 20 November 2001. metal constructions and welds employing non-destructive and destructive methods. In implementing requirements of EU directives transposed The Certification Department of the Service is accredited in accordance with the to the national legislation by virtue of technical regulations, since 2001 the Technical requirements of the standard LST EN ISO/IEC 17024 for welder certification. Supervision Service performes the functions of the notifiedcontrollingauthorityassessing The main services provided by the Technical Supervision Service are: the conformity of lifts, simple pressure vessels, seamless steel gas cylinders, seamless – assessment of equipment technical condition; aluminium and aluminium alloy steel gas cylinders, welded unalloyed steel gas cylinders – equipment conformity assessment; and pressure equipment according to the procedures established in the EU directives and – welder certification; transposed to the national legislation by virtue of technical regulations. – approval of welding procedure specifications; Upon Lithuania’s accession to the European Union, in 2004 the Technical Supervision – testing and inspection of equipment, metal constructions, metal and welds; Service was approved the notified authority within the framework of the European Union – participation in investigating accidents and certificating of equipment servicing (hereinafter EU) Directive 95/16/EC. staff; 53

– providing installation, maintenance, operation and conformity assessment information to the equipment holders; – measuring equipment insulation and earthing resistance; – supervision of special construction works. The structure of the Technical Supervision Service comprises Technical, Certification, Finance and Accounting, General Departments, Testing Laboratory as well as fiveterritorial units – Vilnius, Kainas, Klaipėda, Šiauliai and Panevėžys districts. The Service has highly qualified specialists with long-term work experience who regularly raise their qualification and go on study visits to different countries of the EU. At present the Service employs 62 staff including 50 specialists who are directly related with the supervision of equipment, assessment of technical condition and conformity and settlement of technical matters. Technical inspections carried out by specialists of the Service cover: – steam and water heating boilers and their installations; – pressure vessels and their equipment; – pressure systems of dangerous substances, pressure steam and hot water pipelines and their installations; – dangerous substances containers and their equipment; The Service specialists while carrying out the functions of the notified authority, in – lifts and their installations; 2007 carried out conformity assessment of 227 lifts and 110 pressure vessels and other – suspension ropes, funicular railways and their equipment; equipment. Having analysed and examined filed applications conformity assessment – escalators and their equipment; certificates were issued in confirmation of conformity assessment in observance of – lifting equipment and their installations; requirements of technical regulations. – entertainment equipment (side show) and their installations; Total annual volume of services provided by the Service exceeds LTL 5 million. Up to – combustible gases burning equipment and their installations. LTL 1 million is used every year for the enrichment and renewal of material base. For the purpose of conformity assessment of equipment the experts of the Service – Growing numbers of performed inspections show that the work of territorial conformity assessment group members perform: subdivisions of the Service with equipment owners is continuously improving. This is also – final and one-time checks (assessments) of lifts; positively influenced by continuous development of the sphere of accreditation by the – conformity assessment of simple pressure vessels and pressure equipment Service and growing authority in relation to the development of the sphere of notification according to all modules of respective directives; in observance of the main EU directives. – transportable pressure equipment according to modules of Directive 1999/39/EC; The Technical Supervision Service holds the license issued by the State Nuclear Safety – assessment of motor vehicle lifting equipment and devices used to lift people Inspectorate (SNSI) of the Republic of Lithuania granting the right to carry out technical related with risk of falling from height of more than 3 metres; inspections of pressure vessels, nuclear power plants, pipelines and their equipment in – assessment of seamless and welded gas cylinders. the area of nuclear energy of the Republic of Lithuania, the license issued by the Radiation For the purpose of technical inspections and conformity assessment of equipment, Safety Centre entitling employees of the Service to handle ionising radiation sources and specialists of the Technical Supervision Service use the most up-to-date measurement the certificate issued by the State Energy Inspectorate under the Ministry of Economy of and visual inspection instruments and services of the Testing Laboratory which has the Republic of Lithuania whereby experts who have acquired respective training are necessary equipment for carrying out destructive and non-destructive tests according to granted the right to carry out tests and measurements of electric receivers (power and requirements of EN standards. lighting equipment of up to 1,000 V voltage). As a rule, specialists of the Technical Supervision Service provide their services on The Technical Supervision Service is a member to the Lithuanian District Heating the basis of bilateral agreements concluded with equipment owners and using prices Association, the Lithuanian Welders Association and Vilnius Industry and Business Association. approved and mutually coordinated in the established manner. The Service participates in the work of technical committees of the Lithuanian Standardization The volumes of services provided to legal and natural persons keep growing year- Department, and of the committee of control bodies of the Lithuanian National Accreditation on-year – over 19,000 technical inspections of equipment are performed annually. The Bureau Office. The Service maintains relationships and shares information with analogous number of inspected gas cylinders has been growing during recent years. services of Estonia, Latvia, Russia, Germany and Czech Republic. Lithuanian District Heating Association

Heat sector is one of the key energy subsectors in Lithuania. Its activity is closely related to other energy industries, such as power, gas, oil and renewable energy sources. All cities/towns and many settlements of Lithuania have district heating (DH) systems. Where the DH is not cost-effective, an individual heating method is applied. Presently, the DH and individual heating account for approximately 50% each. Such ratio exists in many neighbouring countries with climatic conditions similar to those in Lithuania and with the heating season lasting 6-7 months per year as well. During the 18 years of independence the DH underwent many changes related to the transition from Soviet work methods to those of the market economy. During the transitional Vytautas STASIŪNAS period, there was a danger of the DH sector being destroyed, as was the case in some ex- President of LDHA Soviet republics. Efforts of our specialists as well as the positive example and the assistance of the Scandinavians countries were the key factors determining the preservation of the DH in Lithuania. Having a well-run DH sector and capable of modernising it up to the level of Western countries, Lithuania sets the example to the other 10 new Member States. Much has been done in all the fields of the district heating sector over the previous period. Users may enjoy automatic heat substations that were installed in buildings and that preserve the required temperature in apartments irrespective of outside temperature changes, which is especially important in spring and in autumn. Buildings are no longer overheated. Users also started to appreciate the benefits of district heating. Previously they requested to be disconnected from the district heating system, now they want to be connected. The liquidation of group heat substations and the performance of other modernisation work resulted in the significant decrease of heat loss in the system. The transition to the use of local fuel in the heat production is successfully made, the capacity of cogeneration equipment is increased, and other modernisation works resulting in the decreased fuel consumption in the energy production are carried out. In January 2007, the Seimas of the Republic of Lithuania approved the new National Energy Strategy providing for the extensive development of the district heating in Lithuania. Wider application of local fuel and municipal waste, installation of cogeneration power stations, modernisation of the heating system, building interior heating system and forced hot-water system, also the warmth-keeping of buildings will allow to reduce heat consumption and at the same time the cost sustained by residents. From 1996 to 2006 some LTL 1 billion were invested into the heat sector. However, the investment of more than LTL 9 billion will be required for the renovation of the heat economy sector over the next five years, as provided in the 2008-2012 action plan for the implementation of the National Energy Strategy approved by the Government of the Republic of Lithuania on 27 December 2007. We are glad that we have achieved so much, and we shall do our best to continue our activities in the same direction, viz. towards the better and more modern future of the Lithuanian heat sector.

Vytautas STASIŪNAS President of the Lithuanian District Heating Association Activities of the Lithuanian District Heating Association over the 10 years

residents shall pay to organisations operating the said equipment for the maintenance Background of the equipment. Furthermore, relations between municipalities and Lietuvos valstybinė energetikos sistema State Enterprise have been regulated. Prior to 1997, district heating enterprises of the Republic of Lithuania were After the restoration of Lithuania’s independence, heat production enterprises (with subordinated to SPAB Lietuvos Energija. Law No. VIII-182 of the Republic of Lithuania On few exceptions) formed a part of the energy system of the Republic of Lithuania. the Reorganisation of Lietuvos Energija Public Limited Liability Company of Special Purpose Resolution No. 75 of the Government of the Republic of Lithuania dated 22 February and on the Transfer of the Heat Sector and Its Management to Municipalities adopted by the 1991 (Official Gazette, No. 8-238, 1991) approved the list of state enterprises of special Seimas of the Republic of Lithuania dated 8 April 1997 (Official Gazette, No. 33-814, 1997) purpose, also approved their regulations and attributed these enterprises to the jurisdiction resulted in the decentralisation of the heat sector. of respective authorities. Considering the historical situation, wishing to ensure the continuous heat supply Heat producing enterprises were attributed to the jurisdiction of the Ministry of for consumers following the reorganisation, and considering that not all the municipalities Energy of the Republic of Lithuania, which became the incorporator of such enterprises are ready to independently manage the heat sector in their territory, the decentralisation according to its regulations. The said resolution provided the following list of heat of the heat sector management should be carried out according to the regional principle. producing regional enterprises: Municipalities of cities and regions (except the heat supply regional centres) that are ready 1. Vilnius State Combined Heat and Power Plant and wish to independently manage the heat sector should be granted the right to separate 2. Kaunas State Combined Heat and Power Plant from regional heating companies. Municipalities are not allowed to separate heat supply 3. Vilniaus šilumos tinklai State Enterprise centres from regions, as these centres include all regional repair centres, engineering 4. Kauno šilumos tinklai State Enterprise services, etc. If they refuse to participate in the operation of the regional heat sector, some 5. Klaipėdos šilumos tinklai State Enterprise of the municipalities may find themselves in a rather difficult situation. 6. Šiaulių šilumos tinklai State Enterprise After the decentralisation of the heat sector was completed, enterprises had to 7. Panevėžio šilumos tinklai State Enterprise independently deal with various issues. In order to facilitate the solution of such issues, 8. Alytaus šilumos tinklai State Enterprise district heating enterprises decided to form an association. 9. Šiluma State Enterprise Resolution No. 478 On the Improvement of the Heat Sector Management in Cities/ Towns and Settlements of the Government of the Republic of Lithuania dated 28 June Incorporation of the Association. 1993 (Official Gazette, No. 26-613, 1993) started the decentralisation of the management Structure of district heating enterprises, as this resolution obligated the Ministry of Energy to transfer district heating enterprises and heating systems to urban and regional boards (in other words – municipalities) at the request of the latter. The Lithuanian District Heating Association (LDHA) was incorporated on 24 Feb- There were rapid changes in the energy sector of the Republic of Lithuania; therefore, ruary 1998 as a voluntary organisation of legal entities engaged in the heat sector. The with due consideration to the trend of these changes, the Government of the Republic of main goal of the Association is to co-ordinate activities of its members and to represent Lithuania issued Resolution No. 288 On the National Energy Complex Development Plan their interests. (the National Energy Strategy) on 19 April 1994 (Official Gazette, No. 30-545, 1994), The first steps of the Association are witnessed in the Chronicle: which approved the National Energy Complex Development Plan (the National Energy Strategy) and the principal directions of the National Energy Strategy prepared by the Ministry of Energy. Directions provided for the efficient heating, whether district or decentralised, for the reconstruction and modernisation of the existing district heating systems, for cost- effective installation of heat meters (and the making use of the capacity of the national instruments industry for the manufacturing of the same), for the reduction of the heat loss, for the reconstruction of boiler stations into combined heat and power plants (if cost- effective), and for seeking that each and every heat source had reserve fuel. As a result of many problems in the heat sector and party in response to the National Energy Strategy approved on 19 April 1994, the Government of the Republic of Lithuania passed Resolution No. 729 On the Improvement of the Operation of the Heat Sector and Services on 11 August 1994 (Official Gazette, No. 63-1236, 1994). This resolution instructed to transfer all group equipment for hot water preparation and heating system to the exterior wall of a residential building, as well as the forced hot-water system from the equipment for hot water preparation, and transitional collectors into the balance sheet of Lietuvos valstybinė energetikos sistema State Enterprise. It also obligated municipalities to establish the procedure of operation of forced hot-water systems and group equipment for hot water preparation, internal heating and forced hot-water systems, heating units and individual equipment for hot water preparation not transferred into the balance sheet of Lietuvos valstybinė energetikos sistema State Enterprise. It was established that the Lithuanian District Heating Association

The management bodies of the Association: • general meeting of members; • the board; • the President. The board co-ordinates the activities of the Association, draws up the operational programme and the budget plan, and provides the conditions for the implementation of objectives stated in the articles of association. The Association carries out its activities in line with the programme approved annually by the general meeting of members.

28 September 2004. The 50th anniversary of Euroheat & Power. At the headquarters of Euroheat & Power in Brussels, Belgium. First row, from left: Vytautas Stasiūnas (President of the LDHA), Tomas Bruce (President of Euroheat & Power), Sabine Froning (Executive Director of Euroheat & Power) and heads of associations of other countries.

General meeting of members of the LDHA held on 17 May 2005.

Romualdas Pocius was the first President of the Association who served in office until 2000. Since 2000 Vytautas Stasiūnas has been heading the Association.Presently, the Association has 41 members, including 32 district heating enterprises that produce and supply approximately 99% of heat distributed through the system in the Republic of Lithuania, and 9 enterprises engaged in the heat economy sector. The staff of these district heating enterprises amount too approximately 500; in 2006 the total heat production was 10393 GWh, while power production amounted to 1230 GWh.The LDHA has Technical, 22 June 2006. At the annual congress of Euroheat & Power. From left: A. Katinas Marketing, Economic, Political Strategy, Legal and Training committees that take care of (NCCPE), V. Valutis (AB Klaipėdos energija), T. Brice (President of Euroheat & Po- the issues of utmost importance to district heating enterprises. wer), V. Stasiūnas (LDHA), N. Rasburskis (UAB Termosistemų projektai)

Promotion of local and international co-operation

The ten-year Chronicle of the Association recorded quite a few signiﬁcant achievements: the number of the members increased more than twice (from 16 to 14), the Association entered into business relation with district heating associations and district heating enterprises of Denmark, Sweden, Finland, the Czech Republic, Estonia, Latvia, Poland, etc., the Association maintains active co-operation with public and governmental authorities, municipalities, related associations, consumers’ organisations, scientiﬁc and training establishments, and consulting companies. Membership in other organisations 33rd Congress of Euroheat & Power was held on 18 June 2007 in Copenhagen, Denmark.

On 23 July 2001 the LDHA became an associated More than 400 representatives from various European and other countries attended member of Euroheat & Power (the International Association this annual European congress of heating specialists. The congress discussed recent issues for District Heating, District Cooling and Combined Heat and of importance for countries with developed district heating. Sixty high-ranking oﬃcials Power), and in March 2003 it became a full member. This membership has provided new presented their reports. The congress also included an international exhibition, seminars opportunities for co-operation with European organisations and for active involvement in for specialists, meetings, discussions, presentations of production enterprises, technical integration processes. visits to sites, and various public events. Activities of the Lithuanian District Heating Association over the 10 years

On 2 July 2001 the LDHA became a member of the On 13 October 2005 the LDHA, the Forest Owners Association of Lithuania and the World Energy Council Lithuanian member committee. Lithuanian Biofuel Producers and Suppliers Association signed a co-operation agreement on the promotion of the production and consumption of biofuel in Lithuania. On 29 November 2002 Public Institution Lithuanian Energy Museum was founded. The LDHA is one of the founders of the museum.

On 24 August 2006 the National Heat Energy Technology Platform (NHETP) was established. The LDHA is an administrative partner of this Platform. The NHETP is the amalgamation of the interests of business enterprises engaged in the Lithuanian heat energy sector and of scientiﬁc research institutions in the heat energy sector. The following organisations agreed to participate in the activities of the NHETP and signed the partnership agreement: the Lithuanian District Heating Association, Vilnius Gediminas Technical University, the Lithuanian Energy Institute, UAB Axis Industries, the Lithuanian Energy Consultants Association and the Lithuanian Biofuel Producers and Suppliers Association.

On 22 August 2006 the LDHA became a member of the National Biomass and On 19 September 2006 a co-operation agreement was signed among the Biofuel Production and Consumption Technology Platform. Kaliningrad Energy Saving Association, the Lithuanian Electricity Association and the Lithuanian District Heating Association. This agreement seeks to expand collaboration On 11 May 2007 the LDHA became a member of the and co-operation in the field of increasing energy efficiency. EFIEES (European Federation of Intelligent Energy Efficiency Services). The goal of the Federation is to promote the activities of energy efficiency service companies (EESC) in the European Union.

On 23 May 2002 the LDHA signed a tripartite co-operation agreement with the Association of Local Authorities in Lithuania and the Lithuanian Energy Institute.

The Armenian delegation visiting the headquarters of the LDHA in 2002. We are proud that representatives of organisations from East European countries visit our country to draw on experience. In 2002, representatives of Armenian and Moldovan heat suppliers and municipalities visited our Association according to the MUNEE programme; on 14-15 September 2004 the Association was visited by the leadership of the sister organisation of Moscow, and on 7 December 2004 – by the delegation from Kosovo (at the request of our Swedish colleagues). Issues discussed included the Lithuanian District Heating Association

58 organisation of the management of the Lithuanian heat sector, and the drafting and Meetings of working groups regarding the implementation of subordinate implementation of legislation. legislation of the Law on Heat Sector are most probably the most significant field of action In 2006 the Association was also visited by representatives of Finnish and Danish of the Association. All concerned social dialogue parties have been regularly attending companies as well as by the Slovenian delegation. such meetings for 3 years already. These meetings discuss the most important issues of the heat sector and seek to find the best solution to any problems. More than 210 such meetings were held after 27 September 2002 (the date of the first meeting that started the drafting and coordination of the draft Law on Heat Sector).

On 4 January 2006, in order to encourage more active participation of specialists and consultants of the Lithuanian heat sector as well as the staﬀ of district heating enterprises in the consideration of instruments adopted by EU bodies in relation to district heating 16 September 2005. 100th meeting of the Lithuanian District Heating Association. and cogeneration, also in order to encourage more active collection and dissemination Approximately 30 members of the working group representing public and other of information about hi-tech solutions and data on important technical and economic authorities are invited to the meetings. indicators of the heat sector in EU Member States, participation in various EU international From the very start of the Association, District Heating in Lithuania in EU Member programmes, the Association organised a meeting attended by representatives of the States was one of the most important conferences on district heating organised by the Ministry of Economy and the Ministry of Environment of the Republic of Lithuania, the LDHA; at the instructions of the Deputy Chairman of the Seimas Česlovas Juršėnas, the State Enterprise Energy Agency, the National Control Commission for Prices and Energy, conference was held on 26 September 2001 in the Seimas. More than 200 Lithuanian Statistics Lithuania, the Lithuanian Energy Institute, the Lithuanian Energy Consultants scientists and representatives of public authorities, guests from Euroheat & Power, the Da- Association, Kaunas University of Technology, Vilnius Gediminas Technical University and nish Parliament and the Danish Energy Agency participated and shared their experience district heating enterprises. in the conference. The conference adopted a resolution on behalf of the steering group of In line with strategic goals, 2005 saw the birth of a very close co-operation with the members of the Seimas and the organising committee. sister company Российское теплоснабжение from the neighbouring Russia. In 2006, active co-operation was established with the Ukrainian Embassy, while in 2007 – with representatives of the Belarusian Embassy. Both the Ukrainian Ambassador and the Belorussian Ambassador were addressed with a request to provide mediation service and to share the experience related to renewable energy sources the processing and operation of which could reduce the dependency upon natural gas imported from Russia. In 2006 there were several visits by representatives of the Ukraine, and in 2007 we participated in the Lithuanian and Belorussian 3rd Economic Forum held in Vilnius. On 18 September 2006 the LDHA signed a co-operation agreement with Vilnius College of Construction and Design. It provides for close relations during the training of highly skilled heat energy specialists and in performing applied research of a general nature the results of which would be used in the activities of the members of the Association.

Organisation of events, seminars, In May 2001, a meeting of the leaders of district heating associations of all the Bal- tic States was held in Riga. The meeting discussed district heating issues of importance to meetings all three states. The meeting ended with an open address to Estonian, Latvian and Lithua- nian governments regarding a ﬂexible decision ensuring the further development of dis- We continuously participate in national and international conferences, present trict heating and cogeneration as a measure for the development of national economy. reports on district heating issues, organise seminars, form specialist groups and co-ordinate On 7-10 October 2004 the General Assembly of the REHVA was organised. It was their meetings. We are actively involved in the drafting, consideration and improvement held concurrently with conference Energy for Buildings, which was attended by repre- of the Lithuanian laws and subordinate legislation related to the development and sentatives of competent organisations from 29 European countries. The Association was management of the heat sector. actively involved in the activities of the organisational committee. Activities of the Lithuanian District Heating Association over the 10 years

On 16 April 2004 the professional day – the Power Engineering Specialists’ Day – national energy industries, such as power, heating, gas, oil and nuclear energy, and their was celebrated for the ﬁrsttime(itlaterbecameanannualevent).Thisdaywasestablished guests from all over Lithuania arrived for celebrations. Employees of merit were awarded by the order of the Minister of Economy dated 28 January 2003. People engaged in all with badges of honour and letters of acknowledgement issued by the board of the LDHA.

22 April 2006. The celebration of the Power Engineering Specialists’ Day in Siemens Arena in Vilnius. The total of 6,000 guests attended the celebration, including 2,200 employees of LDHA enterprises and their guests.

On 7 December 2005 the leaders of the LDHA discussed the operational results On 23 May 2006 conference Lessons of the Breakdown in Telšiai Heat Sector of the previous year and set the guidelines for 2006. The meeting was attended by was organised jointly with the Association of Local Authorities in Lithuania and Telšiai members of the Seimas P. Vilkas and S. Bucevičius, representatives of the Ministry of Municipality. The goal of the conference was to discuss the results of the heating system Economy of the Republic of Lithuania A. Ignotas, A. Zaremba and P. Urbonas, repre- breakdown that occurred at the start of 2006 in Telšiai, to share opinions, ideas and sentative of the State Energy Inspectorate V. Miškinis, representatives of the National proposals on how to avoid similar breakdowns in other cities and regions of Lithuania. Control Commission of Prices and Energy V. Lukoševičius and A. Katinas, representati- More than 200 participants from all over Lithuania attended the conference. ves of the Lithuanian Energy Institute E. Ušpuras and J. Vilemas, representatives of the consumers’ organisations and sister associations, and the heads of LDHA enterprises . On 20 June 2006 the LDHA organised seminar Analysis (Audit) of District Heating Systems; Assessment in Relation to the Probability of System Breakdowns. This seminar was 9 March 2006. The meeting of the heads of LDHA enterprises and representati- organised to implement recommendations of the commission formed by the resolution of ves of the Government and municipalities in Druskininkai to discuss important issues the Government of the Republic of Lithuania to analyse the reasons behind the breakdown of the heat sector (attended by over 50 participants). that occurred on 20 January 2006 in Telšiai heat sector. Lithuanian District Heating Association

It was an introductory event to discuss the collection of data required for the LDHA and EFIEES International Forum Energy demand-side management: which scientific research study carried out in 2006 by UAB Termosistemų projektai and to present actions to improve energy efficiency in buildings? was held on 14 September 2007 in the questionnaire. Vilnius. This forum was organised in order to help solve the following problem issues of district heating so significant in Lithuania: energy efficiency measures in buildings, renovation of multiple-dwelling buildings, etc. The forum included a round-table discussion, also a trip to Vilnius Biofuel Combined Heat and Power Plant No. 2. The forum had more than 150 participants. Reports were presented and experience was shared by foreign specialists from the European Commission, the World Bank, the International Energy Agency, the European Bank for Reconstruction and Development, etc.

5th Euroheat & Power Utility and Industry Forum District Heating and Cooling: Rehabilitation and Risk Management took place on 9-10 November 2006 in Vilnius. It was attended by more than 150 participants from Lithuania, EU Member States and Russia. It was a signiﬁcant event for the heat sector, as the forum of international organisation Euroheat & Power was organised in Lithuania for the ﬁrst time. Topics of the forum: development of district heating, prevention of heating system breakdowns and risk management, rehabilitation of district heating systems, optimisation of services provided to consumers. Reports were presented by Lithuanian specialists and specialists On 7 November 2007 the LDHA organised seminar Heating Costs – in the Hands of from Denmark, Germany, Sweden, Belgium, Austria, the Czech Republic, Serbia, etc. the State and Consumers in co-operation with UAB Expozona. The participants focused on the most sensitive chain of the district heating system, viz. the consumption of thermal A meeting-seminar of the new Marketing Committee (consisting of 23 repre- energy in multiple-dwelling buildings. sentatives of enterprises) of the LDHA was held on 6 December 2006. Stanislovas Karčiauskas (Deputy Director General and Sales and Marketing Director of AB Kauno energija) was elected the Chairman of the Marketing Committee, and Virginijus Zutkis (Director of Heating Sales and Marketing Department of AB Klaipėdos energija) – as his deputy. The meeting discussed problem issues related to the conclusion of heat purchase-sale contracts with domestic heat consumers, legal regulation of payments of residents’ contributions, etc. More than 80 participants attended the seminar, including employees of district heating enterprises, representatives of the Ministry of Economy and the Ministry of Environment, the National Control Commission for Prices and Energy, the State Consumer Rights Protection Authority under the Ministry of Justice, the State Energy Inspectorate and consumers’ organisations.

24 January 2007. The meeting of heads of LDHA enterprises with representatives of public authorities, municipalities, consumers’ and consumer right protection organisations to discuss important issues of the heat sector. Care is taken about the qualiﬁcation and training of the staﬀ of the Association enterprises

Project for 2001-2004 ﬁnanced by the Danish Energy Agency

In 2001-2004, ﬁnancing was provided from the Danish environmental energy sector programme supporting the Lithuanian district heating sector for the implementation of project Training Network of for Staﬀ Engaged in the Lithuanian District Heating, 2001. The goal of the project was to provide assistance to the LDHA by developing the Lithuanian district heating sector and by strengthening the Association itself. The goal was implemented as follows: Activities of the Lithuanian District Heating Association over the 10 years

• By strengthening the image of the DH sector and the political role of the LDHA, by expanding co-operation with various competent authorities; • By developing and implementing training programmes for the staﬀ of LDHA enterprises; • By preparing technical guidelines.

In the spring of 2002 the LDHA (jointly with Swedish DH Council SweHeat) organised international training courses Management of District Heating Enterprises for the members of the Association.

Project Training of the Staﬀ of District Heating Enterprises, 2005-2007

In March 2005 the LDHA received assistance from the EU Social Fund for project Participants of training programme “Financial Management and Accounting”. Training of the Staff of District Heating Enterprises. The main goal of the project was to train staff to increase the competitiveness of economic operators and of the Lithuanian economy in general by developing human resources. During the implementation of the project training was provided to the staff of 107 district heating enterprises according to the following four training programmes: “Ma- nagement”, “Marketing”, “Financial Management and Accounting” and “EU Energy Policy”.

Participants of training programme “Management”.

On 30 May 2006, seminar-examination Preparation of Leading Employees of District Heating Enterprises for Assessment was organised jointly with the State Energy Inspecto- rate and the Centre of Training for Energy Specialists. During the seminar the participants On 26 May 2006 the President of the LDHA V. Stasiūnas and the Director of the were acquainted with energy and heat energy laws and subordinate legislation, also with Lithuanian Institute of Public Administration signed an agreement on training other normative technical regulations and the requirements of the State Energy Inspecto- programmes. rate for the operation of the energy economy. After the seminar the deputies in charge of the operation of the energy economy of the enterprise were examined.

Implementation of domestic and international projects

Coordinative bilateral project with Sweden (1999)

1999 saw the implementation of the coordinative bilateral project of the LDHA and SweHeat (Swedish District Heating Council). The goal of the project was to improve co- Participants of training programme “Marketing” operation between Swedish and Lithuanian organisations and enterprises in the field of heating and to develop trade relations between the countries. The following five pairs Awards of Lithuanian and Swedish district heating enterprises participated in the project: SPAB Since 2002 for the occasion of its anniversaries the LDHA has been issuing letters of Kauno energija – Goteborg Energy International AB, SPAB Šiaulių energija – C4 Energi AB acknowledgement to deserving employees engaged in the field of heat economy for their (Kristianstad), SPAB Panevėžio šilumos tinklai – Kalmar Energi AB, SPAB Mažeikių šilumos active involvement in the development of the national district heating. tinklai – Karlshamn Energi AB, and SPUAB Radviliškio šiluma – Skara Energi AB. Lithuanian District Heating Association

SENET – Project for the development of tools for common social responsibility in the energy ﬁeld (2004-2006)

At the beginning of July 2006, the LDHA completed the implementation of international EU project SENET “Application of the idea of common social responsibility and the co-operation of local authorities and energy associations seeking for rational and sustainable energy consumption in the enlarged European Union”. The project was financed from PHARE funds. The LDHA participated in this project in consortium with Kaunas City Municipality. The project also involved partners from four EU Member States: Finland (Vantaa Municipality); Austria (Graz Municipality and Graz Energy Agency); Latvia (the Latvian District Heating Association and Ogre Municipality); Estonia (the Estonian Union of Association of Local Authorities and the Estonian Power and Heat Association). The goal of the project was to promote the development of tools for com- During the project the consumption of thermal energy in 54 renovated buildings mon social responsibility in the energy field, to promote the co-operation of the new and in the same number of identical not-renovated buildings was monitored. The project EU Member States, to facilitate the integration of neighbouring regions in the common working group summarised energy consumption data received from different Lithuanian EU space, to foster social and economic cohesion and to ensure the compatibility and regions, made conclusions, prepared proposals and announced them through different compliance with the EU legislation and standards in the field of energy saving. During information dissemination channels. the implementation of the SENET project the International Energy Saving Network has been established. In June 2006, all partners of the project signed the joint Energy Saving Project Development of the National Heat Energy Technology Platform Network Declaration. States signatories to this document undertook to jointly promote (2006-2007) energy saving and to contribute to the implementation of goals provided in the EU Green Paper (approved in June 2005), viz. to reduce energy consumption in EU Member States by 20% by 2020, also to consider the UN global agreement (the Rio declaration, 1992) and to foster common social responsibility principles. www.silumosplatforma.lt

Project Monitoring of Thermal Energy Consumption in Multiple Dwelling Buildings and Dissemination of Information in Lithuania (2006)

Implementing the Lithuanian Housing Strategy, the National Programme for In- crease of the Energy Efficiency in 2006-2010, the Programme for the Modernisation of Multiple Dwelling Buildings, programmes of local authorities (programme for the renova- In October 2006, the Lithuanian District Heating Association received assistance for tion of housing in Vilnius Let’s Renovate Housing, Let’s Renovate the City), the Lithuanian the financing of project Development of the National Heat Energy Technology Platform and District Heating Association, Vilnius City Municipality and Vilnius Heating Network imple- for the formation of its capital. mented project Monitoring of Thermal Energy Consumption in Multiple Dwelling Buildings The goal was to co-ordinate the interests and actions of scientific and training ins- and Dissemination of Information in Lithuania the principal goal of which was to monitor titutions, consultative and production enterprises, and to join their human, institutional thermal energy consumption in some of the renovated buildings and identical not-re- and material resources in order to achieve sustainable development of energy resources in novated buildings and to carry out the public awareness and information campaign to the sectors of heat production, supply and consumption. promote the increase of the efficiency of consumption of energy resources and energy. Project results: the feasibility study for the development of the NHETP and the development strategy (vision) of the NHETP has been performed; the NHETP strategic research plan and the website of the platform (www.silumosplatforma.lt) has been established.

Information of consumers; educative activities

Press release. Press monitoring The Association makes continuous eﬀorts to develop a good image of the heat sector in the society. It participates in television broadcasts, issues press releases and organises press conferences. Each day the members receive a press monitoring on im- Activities of the Lithuanian District Heating Association over the 10 years

63 portant articles published in dailies and periodicals. The information of consumers has Review of economic activities of district heating enterprises been especially active since 2002, where active discussions with specialists on heat sector topics and burning issues were broadcasted in Kaina programme of the Žinių radijas Radio Station each Wednesday for ﬁve months in a row. Recently, much eﬀort was concentrated on the promotion of biofuel, the slow process of the modernisation of multiple dwelling buildings, and the rehabilitation of internal heating and forced hot water systems of buildings using mass media tools.

Internet website The internet website of the LDHA (www.lsta.lt) is one of the principal tools for making the information of the Association public. The website provides all important information, such as reports presented during the events, minutes of working group meetings, information about new legislation, studies, scientiﬁc research theses, statistical data of district heating enterprises, and other important information for consumers about district heating, the modernisation of multiple dwelling buildings, the reduction of heating prices, energy saving and energy eﬃciency.

Šiluminė technika Magazine

Annual and semi-annual statistical reports of economic activities of LDHA members has been collected and prepared from the very foundation of the Association (the circulation of the reports: 200). Data are collected in co-operation with the National Cont- rol Commission of Prices and Energy, Statistics Lithuania and the State Enterprise Energy Agency. Reports on the Lithuanian heat sector published in a European periodical

The Lithuanian District Heating Association jointly with the Lithuanian Thermotech- From 2001, with due consideration to the provided questionnaire, the LDHA pre- nical Engineers Association publishes Šiluminė technika Magazine (first published in June pares a report on the Lithuanian district heat sector for District Heat in Europe. Country by 1998). The magazine is published 4 times a year (the circulation is 600). It is intended for Country Survey periodical of Euroheat & Power. This periodical is published once in two thermotechnical specialists engaged in the following fields: for scientists and practitio- years, and it is one of the principal European statistical sources about the district heat in ners, heat producers and suppliers, for manufacturers, assemblers and operators of equip- Europe. The published data are used by international organisations, EU public authorities, ment, also for heat consumers, representatives of public and governmental authorities the experts, consultants, etc. activities of which influence the thermotechnical development in Lithuania. The members of the Association really do where to turn to and with whom to discuss in order to find solutions for problems that they face.The growing perception of the benefits of joint activities promotes the growth of the Association.Therefore, we trust that the LDHA that successfully implements its goals and objectives is well ready for taking new steps in the development and improvement of the heat sector towards a better and more advanced future of the Lithuanian heat sector. Lithuanian District Heating Association

Diagram of the district heating of a city/town or a settlement of Lithuania

5 1 2 6

1 6 3 6

1 4 1

1 Heat source 6 2 Integrated DH system

3 Regional boiler station

4 Local DH system

5 Local heat source

6 Consumers

7 City/town boundary

District heating is a ﬂexible and reliable system capable of using diﬀerent fuels

Waste heat from industrial enterprises Geothermal energy

Municipal waste

Biofuel Fossil fuel Cogeneration Activities of the Lithuanian District Heating Association over the 10 years

Heat energy production balance in Lithuania in Fuel output dynamics 1996-2006 in 1997-2006

16 15.20 120.0 15 14 100.0

13 12.34 80.0 12 11.30 10.70 60.0 TWh 11 10.63 10.44 10.24 10.19 10.30 10.11 10.39 10 40.0 8.89 9 8.55 8.25 8.24 8.31 8.16 8.14 8.13 20.0 8 7.54 7 0 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Supplied to the system Natural gas Renewable energy resources Supplied to consumers Fuel oil Other fuel

Heat energy technological loss in the system, % Share of renewable energy resources in the total fuel balance for heat production, %

14.0 14.0 35.0 12.0 32.3 12.0 30.0 26.5 10.0 10.0 25.0 23.7 22.5 21.4 21.0 19.6 20.0 8.0 7.2

% 17.5 15.0 6.0 5.0 4.0 10.0 4.0 5.0 2.0 2.0 2.0 2.0 1.2 0 1996 2000 2001 2002 2003 2004 2005 2006 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Number of consumers, % Fuel output by type, %

4.43 % 5.7 % 9.6 % 1.95 % Natural gas 14.01% Renewable energy resources Residents 13.6 % - Timber – 130,034 toe Budgetary organisations - Straw, biogas – 1,486 toe - Geothermal energy – 11,980 toe Business/industrial enterprises 79.61% 71.1 % Other consumers Fuel oil Other fuel Lithuanian District Heating Association

Electricity produced by DH CHP plants

1800

1600

1400

1200

1000 %

800

600

400

200

0 Kaunas Combi- Vilniaus Kauno Klaipėdos Panevėžio Šiaulių ned Heat and Litesko TOTAL energija energija energija energija energija Power Plant 2001 836 356 18 5 1215 2002 940 414 19 7 1380 2003 1057 315 21 7 271 1671 2004 1084 1 26 8 599 1 1718 2005 1111 1 21 14 609 7 1 1763 2006 614 3 16 8 580 7 1 1230

Consumers’ debt for DH supplied District heating price behaviour

700000 150 141.2 609292 600000 572867 584255 119.7 544630 114.9 116.5 115.1 113.5 523723 106.2 109.1 111.6 112.5 500000 477462 100 400000 74.9 300000

200000 142297 123628 119518 129687 50 114913 27,17% 22,19% 100371 24,06% 22,70% 20,86% 16,47% 100000

0 2001 2002 2003 2004 2005 2006 0 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 (Preliminary) Total number of consumers Number of indebted consumers Activities of the Lithuanian District Heating Association over the 10 years

Comparison of fuel output structure for heat production in Lithuania and Sweden in 2006

Lithuania Sweden

3 %

2.0 % 14.01 % 2 % 5 % 5 % 4.4 % Natural gas

11 % Biofuel, waste and other renewable energy resources Fuel oil 79.61 % Natural gas 12 % Biofuel 52 % Other fuel Fuel oil Heat pumps Other fuel Waste energy Peat

Fuel output structure for heat production if possible biofuel reserves are used

14.01 % 29 % Natural gas 4.4 % Fuel oil Usable local reserves and reserves of renewable energy resources

2.0 % Other fuel Timber 100,000 toe (500,000 t) Straw 150,000 toe (500,000 t) Biofuel (biofuel resources presently used 50.6 % Municipal waste 200,000 toe (1,000,000 t) amount to 145,000 toe (in 2006)) Willows, sludge 90,000 toe (450,000 t) Unused biofuel potential Total ~540 000 toe

Comparative fuel output in the district heating sector in 1996-2006

102.0 101.7 101.5 101.0 100.5 100.19 100.2 100.07 100.0 )MWh

ne 99.6

kg(t 99.5 99.3 99.1 99.0 98.5 98.5 98.0 1996 2000 2001 2002 2003 2004 2005 2006 Lithuanian District Heating Association

NATIONAL ENERGY STRATEGY (approved on 18 January 2007) /Development of the district heating sector/

Demand for the district heat will not rise until 2025, as energy demand will be cut almost by half through the implementation of programmes of the renovation of buildings, and the energy characteristics of newly constructed buildings will be in line with the EU standards.

1. To manage the heat sector according to special plans of the heat sector. 2. To gradually equip combined heat and power plants. To achieve by 2020 that: • electricity produced by cogeneration plants would amount to at least 35% of the total power balance (it currently amounts to approx. 17%); • thermal energy produced by cogeneration plants would amount to at least 75% of the total district heat balance (it currently amounts to approx. 50%); • to construct combined heat and power plants (of 400 MW of the total capacity) in Klaipėda, Panevėžys, Šiauliai, Alytus, Marijampolė, etc., by 2020 3. To encourage competition among heat producers. 4. To promote the heat and power production from local resources and from renewable energy resources: • to construct the municipal waste burning facility (annual capacity: 200,000 t) in Vilnius by 2010; • to construct similar facilities in Kaunas, Klaipėda, Šiauliai and Panevėžys in 2010-2025; • heat produced from local resources and from renewable energy resource would amount to 17% (in 2010) and to 23% (in 2020) of the total heat production balance. 5. To modernise district heating systems (to replace up to 75% of the existing pipeline) by 2015. 6. To create favourable conditions for the renovation of buildings. 7. Using energy service enterprises to promote the participation of the private capital in projects for the modernisation of the heat sector.

MEASURES FOR THE DEVELOPMENT OF DH SECTOR in 2007-2013

Required ﬁnancing, TOTAL Nr. Measure (in million LTL) 1 Thermal energy production (total) 5642 1.1 CHP (total) 3642 Development of biofuel-based CHP 531 Construction of CHP plants for the utilisation of municipal waste 1615 Development of CHP using fossil fuel 1496 1.2 Replacement of the type of fuel with biomass; construction of new biofuel boiler stations 260 Reconstruction of other existing and construction of new production sourcesIncrease of the eﬃciency of energy pro- 1.3 450 duction 1.4 Implementation of environmental and other measures 1290 2 Thermal energy transmission (total) 1775 2.1 Reconstruction of the existing and construction of new heat transmission systems 1460 Installation of automatic heat substations by liquidating group heat substations; replacement of the existing individual 2.2 315 heating units with new ones 3 Thermal energy consumption (total) 1910 3.1 Reconstruction of the existing internal heating and forced hot-water systems; installation of individual control means 250 3.2 Warmth-keeping of multiple dwelling and other buildings 1660 4 Drafting of legislation (total) 4 TOTAL: 9331 Activities of the Lithuanian District Heating Association over the 10 years

List of DH CHP plants (2007)

Existing Under construction

Nr. Name Electric Heat power Utilised Notes Electric Heat power Utilised Notes power (MW_heat) fuel power (MW_ fuel (MW_el.) (MW_el.) heat) Cogeneration plants of DH enterprises 1 Vilnius CHP Plant No. 3 (UAB Vilniaus energija) 360.00 604.00 gas/fuel oil ST 2 Vilnius CHP Plant No. 2 (UAB Vilniaus energija) 24.00 102.00 gas/timber ST including: 12.00 48.00 timber ST 17.00 biofuel ST (2007-2008) 3 Klaipėda CHP Plant (AB Klaipėdos energija) 10.80 43.80 gas/fuel oil ST 4 Gargždai CHP Plant (AB Klaipėdos energija) 0.04 0.09 gas ICE Kaunas Combined Heat and CHP Plant, 5 170.00 389.00 gas/fuel oil ST private limited liability company 6 Petrašiūnai CHP Plant (AB Kauno energija) 8.00 115.00 gas/fuel oil ST 7 Panevėžys CHP Plant (AB Panevėžys energija) 2.50 25.00 gas/fuel oil ST 35.00 33.00 gas KC (2009) 8 Šiauliai CHP Plant (AB Šiauliai energija) 3.00 44.00 gas/fuel oil ST 9 Druskininkai CHP Plant (UAB Litesko) 0.75 23.50 gas/fuel oil ST 10 Jonava CHP Plant (AB Jonavos šilumos tinklai) 0.17 0.27 gas ICE 11 UAB Plungės šilumos tinklai 0.34 0.35 gas ICE 12 Noreikiškės Boiler Station (AB Kauno energija) 0.75 1.05 Biogas/gas ICE 13 Marijampolės šiluma (UAB Litesko) 2.50 16.00 timber ST Pasvalys Regional Boiler Station No. 1 14 0.02 0.05 gas ICE (AB Panevėžio energija) 15 Šalčininkai CHP Plant 0.04 0.09 ICE 16 Šilutė CHP Plant 0.02 0.23 Liqueﬁed gas ICE 17 Salininkai (UAB Vilniaus energija) 0.61 0.93 gas ICE Utena CHP Plant, 18 0.16 0.24 gas ICE private limited liability company Tauragė CHP Plant, 19 0.75 12.00 biofuel ST private limited liability company Kaišiadorys CHP Plant, 20 0.05 0.10 gas ICE private limited liability company 21 Alytaus energija (UAB Litesko) 9.00 40.70 gas/fuel oil steam turbine TOTAL: 584.50 1377.69 52.00 73.70 Lithuanian District Heating Association

Information received by the LDHA from district heating enterprises about works completed or in-progress in 2007, also about funds for investments and repairs is summarised below.

Enterprise Works completed or in-progress in 2007

UAB Vilniaus energija In 2007, the company assigned approx. LTL 15 million for repair works in the heat sector, and additional LTL 50 million for investments; the total assignations amounted to approx. LTL 65 million. This year saw the liquidation of the last group heat substations and the installation of about 350 automatic heat substations in Vilnius; also, a new district heating system control centre was installed.

AB Panevėžio energija In 2007, the company assigned approx. LTL 17 million for preparatory works for the heating season (cf. some LTL 8.9 million were spent in 2006). The construction of the new Panevėžys Combined Heat and Power Plant (electric power: 35 MW, heat power: 33 MW, heated with natural gas) will be completed by the end of this year. In the last few years this company signed ten EU assistance agreements with the total sum exceeding LTL 11 million, and this amounts to approx. 50% of all funds required for the implementation of energy projects. Assistance funds are used for the modernisation of district heating systems of Panevėžys, Kėdainiai and regional settlements, and for the reconstruction of boiler stations of Rokiškis town, Šlapaberžė (Kėdainiai Region) and Akademija. By November of this year, some 1.3 km of worn routes build more than 30 years ago will be reconstructed in Panevėžys region.

AB Klaipėdos energija This year it allocated LTL 15 million of investments, including LTL 3.1 million for the repair of structures, boilers, boiler station equipment and district heating system, and LTL 1.2 million for investments into the implementation of measures for heat production and the improvement of the reliability of supply. Using hi-tech, it renovated about 5.1 km of heat routes in Klaipėda and Gargždai. Some LTL 7.1 million were assigned for these works, including about LTL 3.3 million from EU Structural Funds.

UAB Litesko Beside the replacement of heat routes and other projects, the company completed the construction of a cogeneration plant (heat power: 16 MW, electric power: 2.5 MW, ﬁt for heating with biofuel) in Marijampolė, and started a cogeneration facility in Palanga.The total of approx. LTL 30 million were allocated for these works, including LTL 25 million for investments and LTL 5 million for repair works.

AB Šiaulių energija The company allocated approx. LTL 8 million for investments and repair works, including approx. LTL 5.6 million for the modernisation of routes, LTL 4.4 million for investments. About 4 km of heat routes were started. New boiler station (capacity: 4 MW; incl. condensing economisers; heated with gas) was constructed (investment of about LTL 1.2 million). LTL 100,000 were allocated for the renovation of heating units, and some LTL 180,000 – for the installation of heat meters.

AB Kauno energija The company allocated approximately LTL 32 million for investments and repair works. Group heat substations were in liquidation. Gasiﬁca- tion works of Jurbarkas boiler station were in progress. About 104 automatic heating units were installed.

AB Jonavos šilumos tinklai The company allocated approximately LTL 5 million for investments and repair works. The new gas boiler (capacity: 4 MW) was started. Automatic heat substations were installed in buildings.

UAB Tauragės šilumos tinklai The company allocated approximately LTL 5 million for investments and repair works. A cogeneration plant (capacity: 0.75 MW. green electricity) using biofuel was built (the commissioning is currently being performed).

UAB Ignalinos šilumos tinklai The company allocated approximately LTL 5 million for investments and repair works. A cogeneration facility for the biofuel boiler was mounted. 100 automatic heat substations were installed, and 12 group heat substations were liquidated.

UAB Šilutės šilumos tinklai The company allocated approximately LTL 4 million for investments and repair works. Boilers (capacity: 6 and 3 MW, heated with timber) were installed.

UAB Utenos šilumos tinklai The company allocated approximately LTL 3 million for investments and repair works.

UAB Kaišiadorių šiluma The company allocated approximately LTL 2 million for investments and repair works. The installation of biofuel boilers (capacity: 5 MW) was completed.

UAB Lazdijų šiluma The company allocated approximately LTL 2 million for investments and repair works. Heat routes are being modernised, and automatic heat substations are being installed in buildings.

UAB Fortum Švenčionių The company allocated approximately LTL 1.5 million for investments and repair works. energija

UAB Anykščių šiluma The company allocated approximately LTL 1.2 million for investments and repair works. 93 automatic heating units were installed, and 11 group boiler stations were liquidated. Activities of the Lithuanian District Heating Association over the 10 years

Enterprise Works completed or in-progress in 2007

UAB Elektrėnų komunalinis ūkis Worn heat routes are being replaced. 100 new units were installed for approx. LTL 1 million.

UAB Raseinių šilumos tinklai Pipes are being replaced, and the release control is being installed. Two biofuel boilers (capacity: 3 and 7 MW) were installed.

UAB Mažeikių šilumos tinklai A 30 MW gas boiler was installed in the main boiler station of the town; its commissioning works will be performed at the beginning of October. A new 16 MW gas boiler is expected to be installed by 2008. New consumers (the area of 15,000 m2) were connected into the DH system.

UAB Molėtų šiluma The company allocated approximately LTL 3 million for investments and repair works. A condensing economiser (capacity: 1.7 MW) was installed.

UAB Plungės šilumos tinklai A 4.7 MW gas boiler for heating of water was installed, as well as a 0.35 MW condensing economiser. Routes are being replaced. Automatic heat substations are being installed.

UAB Radviliškio šiluma The company allocated approximately LTL 5 million for investments and repair works. Approximately 7 km of routes were replaced, and 2 biofuel boilers (5 MW each) were installed.

UAB Šakių šilumos tinklai The company restored the district heating in Gelgaudiškis town, where it built a 2 MW boiler (heated with straw), installed automatic heat substations in multiple dwelling buildings and liquidated ineﬃcient wood-based boiler stations that were installed near buildings.

Similar works are being carried out by other district heating enterprises as well.

It is a shame that heat consumers will not feel the results of works carried out by district heating enterprises, as one of the major and oldest problems preventing from cost eﬀective use of thermal energy, viz. poor quality of multiple dwelling buildings resulting in signiﬁcantly larger heating expenses incurred by residents, still remains.

StaﬀoftheAssociation,2008 Front cover: Panoramic view of Vilnius with Vilnius Combined Heat and Power Plant No. 3, the principal producer of heat and electricity Back cover: Kaunas district heating diagram. 200 copies published

Layout and printing: UAB Sapnų sala S. Moniuškos g. 21, LT-08121 Vilnius e-mail: [email protected] www.sapnusala.lt Heat is supplied to consumers via underground heating networks built in Lithuanian cities and towns and in the majority of the country’s settlements. Kauno m. šilumos tiekimo schema DISTRICT HEATING – TOWARDS THE COUNTRY’S ENERGY SUPPLY INDEPENDENCE AND CLEAN ENVIRONMENT

Raudondvario RK

intergruoto tink izoliuoto tinklo Šilumos trasos Integruoto tinklo magistralės Integruoto tinklo skirstomasis Izoliuoto tinklo gatviu linijos miesto riba

LITHUANIAN DISTRICT HEATING ASSOCIATION LITHUANIAN DISTRICT HEATING ASSOCIATION Naugarduko g. 55A, LT-03204 Vilnius Tel: +370 5 235 6043, fax: +370 5 235 6044 www.lsta.lt 1998–2008