Lietuvos energijos gamyba, AB - Other information

Optimal operation scenario for Elektrėnai complex has been determined

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to generate electricity in 1962-1963 should be withdrawn from operation once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1967-1968 will be withdrawn once the links with Sweden and Poland are launched.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