The European Investment Bank (EIB) is lending €105 million (US$113.8 million) to Lithuanian utility Ignitis Group to install a fifth pump-turbine unit at the Kruonis Pumped Storage Hydroelectric Power Plant, making it one of the largest energy storage facilities in Europe.
The expansion supports Lithuania’s goal of meeting 100% of electricity demand from renewable energy sources by 2030. The steep growth of intermittent renewable-energy sources, mainly wind and photovoltaic, requires a strong increase of flexibility in the grid, including storage capacity and frequency and voltage control, which can be provided by pumped storage hydropower plants, EIB said. The investment supports the Ignitis Group’s goal to quadruple its green generation capacity from 1.2 GW in 2022 to 4 GW to 5 GW by 2030.
“We are delighted to sign the agreement with the EIB, which opens the door to new opportunities by expanding Kruonis PSHP infrastructure and implementing sustainable-energy solutions for the future, said Ignitis Group Chief Financial Officer Jonas Rimavičius. “The necessary investments will also increase electricity production and facilitate the development of green generation.”
Installation of the fifth unit, with a capacity of 110 MW, will increase total capacity of the Kruonis PSHP to 1,010 MW. The unit is due to be completed by the end of 2026.
The Kruonis PSHP is operated by Ignitis Gamyba. It has the capacity to continuously supply electricity to all of Lithuania for 12 hours at 900 MW. The Kruonis PSHP also provides frequency restoration reserve services and voltage control services unrelated to frequency control and balancing, balancing the difference between electricity generation and consumption in the country. Kruonis PSHP also provides essential services for preventing and eliminating emergencies in the energy system.
“Enabling the energy transformation through innovation and infrastructure is key to securing our future,” said EIB Vice-President Thomas Östros, who is responsible for operations in Lithuania. “By investing in renewable-energy sources and sustainable technologies, we do not only ensure energy security but also pave the way towards a low-carbon economy. As the EU’s climate bank, we are committed to putting EU climate goals into practice – and partnering with Ignitis is a good example of this.”
Storage technologies act as enabling infrastructure in the energy transition and contribute toward increasing security of fuel supply by reducing dependency on energy imports and ensuring price stability, EIB said. The project contributes to the integration of low-carbon generation and thus reduces carbon and air pollution, with positive climate and health externalities.
EIB is the long-term lending institution of the European Union, owned by its Member States. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. All projects financed by the EIB Group are in line with the Paris Agreement.
