Optimal operation scenario for Elektrėnai complex has been determined

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| Source: Lietuvos energijos gamyba, AB
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Elektrėnai, Lithuania, 2014-06-11 11:49 CEST (GLOBE NEWSWIRE) -- We would like to inform that in February 2014 Lietuvos energijos gamyba, AB (hereinafter referred to as the Company) initiated a project called Perspectives Analysis of Elektrėnai Complex (hereinafter referred to as the Analysis). Based on the Analysis findings, the recommended optimum operation scenario for Elektrėnai complex, consisting of the old units of the Lithuanian Power Plant and combined cycle gas turbine unit, has been determined.

The Analysis was initiated taking into account the tertiary power reserve volumes currently ordered by transmission system operator LITGRID, AB (hereinafter referred to as Litgrid), which are 270 MW/hour, having considered the operating schedule of the Company's controlled Lithuanian power plant (hereinafter referred to as LPP) of the last three years, when the LPP never had more than three units in operation at the same time, and in order to optimise the need of funds assigned to financing of Services of Public Interests (hereinafter referred to SPI). During the Analysis, possibilities of the LPP to work under market conditions and the most likely need for systematic services of LPP, as well as technical condition of LPP production capacities and investments needed to sustain them, costs, need for SPI funds and its impact on SPI rate were considered.

According to the established optimum operation scenario for Elektrėnai complex, the units B-1 and B-2 of the LPP (of 150 MW capacity each) which were launched to generate electricity in 1962-1963 should be withdrawn from operation once the new biofuel boiler currently under construction in Elektrėnai starts working, while LPP units B-5 and B-6 (of 300 MW capacity each) launched in 1967-1968 will be withdrawn once the links with Sweden and Poland are launched. The deadline for decommissioning of LPP units B-1 and B-2 established in the scenario is beginning of 2015, while for units B-5 and B-6 - beginning of 2016. Thus, from 2016, the power generating capacities in Elektrėnai complex would comprise a modern combined cycle gas turbine unit of 455 MW capacity and two LPP units B-7 and B-8 of 300 MW capacity, that can generate electricity by using both gas and mazut. The total installed capacity of the power plant would reach 1055 MW.

By determining the optimum operation scenario of Elektrėnai complex, the attempts were made to assess if its implementation would represent any obstacles for the transmission system operator to acquire sufficient volumes of systematic services on the market, which are needed to ensure reliable and safe operation of the Lithuanian power system. In this respect, the Company inquired about the Litgrid position and has been given the answer that the Transmission system operator has no objection to implementation of the scenario in question. It should be further noted that based on the review Lithuanian energy security of 2012-2013 conducted by Energy security research centre, withdrawal of the LPP units 1-6 from operation will not have substantial impact on energy security of Lithuania. It should actually increase significantly once the liquefied natural gas terminal and power links with Sweden and Poland are launched.

Considering the Analysis results, the position of the Transmission network operator and potential impact of the scenario implementation on the energy security of the country, the Company's Board formed a working group and assigned it with a task to develop a new operation model for Elektrėnai complex, which would ensure power generation and provision of reserve services without the LPP units 1-6 in operation. Once the working group develops a new operation model of Elektrėnai complex, the Company is planning to make formal decisions regarding the implementation of the optimum operation scenario of Elektrėnai complex and withdrawal from operation of the LPP units B-1, B-2 from early 2015. Formal decision on withdrawal of the LPP units B-5 and B6 from operation will be made in the mid-2015, taking the existing market conditions into consideration.

Works related with planned decommissioning of the LPP units B-1, B-2, B-5, B-6 are expected to form an important part of the future operation of Elektrėnai complex, as well as other optimisation projects with human resources currently working at the above-mentioned units redirecting to them.

         Valentas Neviera
         Head of Corporate Communication Division
         "Lietuvos energijos gamyba", AB
         Tel. +370 619 62019
         Email: valentas.neviera@le.lt