Lithuanian utility Ignitis Group has secured $114 million (EUR 105 million) in loan from the European Investment Bank (EIB) to expand a pumped storage hydroelectric plant.
The utility, according to a media release by EIB, plans to install a fifth pump-turbine unit at the Kruonis Pumped Storage Hydroelectric Power Plant. The expansion means the facility will become one of the largest energy-storage facilities in Europe, according to the EIB.
The expansion supports Lithuania’s aim to meet all electricity demand through renewables by 2030. To handle the rapid growth of intermittent renewable sources like wind and solar, the grid needs more flexibility and storage, which pumped storage hydropower plants can provide. The investment aligns with Ignitis’ plan to increase its green generation capacity from 1.2 gigawatts (GW) in 2022 to 4–5 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 Chief Financial Officer Jonas Rimavicius. “The necessary investments will also increase electricity production and facilitate the development of green generation".
With the installation of the fifth unit (110 megawatts), the capacity of Kruonis PSHP will increase to 1,010 MW. The unit is due to be completed by the end of 2026, the EIB said in its media release.
"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”.
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