Lithuania Advances Towards Energy Independence with a Significant EIB Loan for Ignitis, The European Investment Bank (EIB) has committed €105 million to the Lithuanian utility company Ignitis Group for the expansion of a crucial pumped storage hydroelectric facility. This project includes the addition of a fifth pump-turbine at the Kruonis Pumped Storage Hydroelectric Power Plant (PSHP), elevating it among the premier energy storage sites in Europe.

This initiative aligns with Lithuania's ambition to source its entire electricity consumption from renewable resources by 2030. The rapid expansion of renewable energy sources, such as wind and solar power, necessitates enhanced grid flexibility. This includes improved storage capabilities and the management of frequency and voltage, roles that pumped storage hydro facilities like Kruonis PSHP are well-equipped to fulfill.

Ignitis Group's investment aims to significantly increase its green energy production capacity, from 1.2 GW in 2022 to between 4 and 5 GW by the end of this decade.

Jonas Rimavičius, the Chief Financial Officer of Ignitis Group, expressed enthusiasm about the partnership with EIB, highlighting the opportunities it presents for infrastructure enhancement and the promotion of sustainable energy practices. He noted that the investment would boost electricity production and support the expansion of renewable energy generation.

The addition of the new 110-megawatt unit will boost Kruonis PSHP's total capacity to 1,010 MW, with completion expected by the end of 2026.

EIB Vice-President Thomas Östros, overseeing operations in Lithuania, emphasized the importance of supporting energy innovation and infrastructure to ensure a sustainable future. He stated that investments in renewable energy and sustainable technology are crucial for energy security and for moving towards a carbon-neutral economy. The EIB, as the EU's climate bank, is dedicated to actualizing EU climate objectives, and the collaboration with Ignitis serves as a prime example of these efforts.

The project underscores the role of storage technologies as crucial infrastructure in the energy transition, enhancing fuel supply security by diminishing reliance on imported energy and stabilizing prices. Moreover, it aids in integrating low-carbon energy solutions, thereby reducing carbon emissions and air pollution, which in turn yields positive climate and health benefits.