EIB grants US$115 million loan for Lithuanian power plant

Lithuania’s state-controlled energy group Ignitis Group has announced that the European Investment Bank (EIB) has approved a loan of €105 million (US$115 million) for the construction of the fifth unit at Lithuania’s Kruonis Pumped Storage Hydroelectric Plant (PSHP).

Lithuania’s Kruonis hydroelectric power plant. Photo: Ignitis Group

The estimated cost of constructing the new unit is €150 million (US$164 million).

The construction project to be undertaken by a consortium comprising Voith Hydro Germany and Voith Hydro Austria, under a contract signed in April last year.

Ignitis Group says it expects construction on the new unit to be underway before the end of the year.

Once completed, the additional 110MW unit will boost the capacity of the Kruonis plant to 1,010MW.

Currently, the Kruonis PSHP operates four units, each with a maximum capacity of 225MW.

The expansion project is expected to be completed by the end of 2026.

According to Ignitis Group’s chief financial officer, Jonas Rimavicius, the 16-year financing agreement with the EIB is seen as “opening the door to new opportunities by expanding Kruonis PSHP infrastructure and implementing sustainable energy solutions for the future.”

Rimavicius said the investments facilitated by the loan would enhance electricity production and make a significant contribution to the development of green power generation in the region.