Invitation DH-SECTOR VISIT IN LITHUANIAdbdh.dk/download/Invitation Lithuania nov 2014.pdfThe target...

24TH - 25TH NOVEMBER 2014

DH-SECTOR VISIT IN LITHUANIAInvitation

Stæhr Johansens Vej 38 · 2000 Frederiksberg · Tlf.: 3818 5440 · www.dbdh.dk

DBDH, The Danish Trade Council, and the Embassy of Denmark in Vilnius hereby have

the pleasure of inviting you to join a two day District Heating export promotion visit in

Lithuania, from the 24th to the 25th of November 2014.

The Lithuanian energy market in brief

The heating sector in Lithuania is one of the key energy sectors. Lithuania has one of the largest spread of

DH-schemes in EU (with reference to the number of inhabitants), whereas more than 67% of the total heat

demand is supplied by DH.

Energy security and energy independence are presently the primary strategic priorities for the Government

of Lithuania, and the energy sector is particularly important to Lithuanian economy. Currently strategic energy

reforms in the electricity and gas sectors are being successfully implemented, and a gradual transition towards

a more efficient energy production and greater use of renewable energy sources have commenced.

The European Parliament and Council Directive has set out a mandatory national overall target for the share of

energy from renewable sources in the gross national consumption of energy in 2020. The target for Lithuania

is 23% of RES in the gross final consumption of energy in 2020 (including 10% of renewable energy in the

transport sector).

In this context, the Lithuanian government has prepared a new National energy sector development strategy

2014-2020. In the strategy, the emphasis is to establish an effort modernizing the existing district heating

system in Lithuania. In addition, the Strategy stipulates that the state will support initiatives aimed at increasing

the use of biomass and other renewable technologies for heat production. Following this initiative, significant

changes are anticipated to affect the Lithuanian energy sector within the coming years.

For the district energy sector, which at present has a heat production, which is mostly based on natural gas

and other fossil fuels, the new energy sector strategy is expected to have a magnificent impact. Lithuania

is currently experiencing having one of the highest gas prices in Europe, caused by the fact that the gas

is supplied as a monopoly from one single supplier in Russia - Gazprom. The objectives for the Lithuanian

government initiative is thereby to

- decrease the dependency on imported gas

- decrease the DH-production cost

- decrease the CO2-emissions significantly

- increase the share of RES in the energy production

- increase the energy efficiency in the DH infrastructure and at the consumer installations

Pursuant to the strategy, Lithuania is set to encourage economically viable investments into heat production

from biomass with priority on co-generation plants fuelled by biomass. More than 1 TWh of heat is planned

to be produced each year in new biomass boilers. Additionally the Government is planning to support

utilisation of waste to energy potential, use of solar energy and use of residual/surplus heat in the district

heating sector. According to the optimistic forecasts, in 2020 renewable energy sources in Lithuania will

comprise no less than 60% of energy produced for district heating, which gives an idea of the forthstanding

investments related to the initiatives.

To read more, please refer to the enclosed background information document elaborated by the Danish

Embassy in Vilnius.

DH-SECTOR VISIT IN LITHUANIA


The preliminary program for the visit

The program for the visit is not fully fixed yet, however the draft agenda comprise:

Sunday, November 23rd - Arrival day

15.00 – 24.00 Delegates arrive at the pre- booked hotel in Vilnius. Possibility to arrange a sightseeing tour

around Vilnius old town, which is on the UNESCO heritage list.

Monday, November 24th - Conterence day

Local invited participants will be political decision makers from regions and municipalities, DH-production

facilities and power plants, private actors and other stakeholders.

08.15 Transportation from the hotel by bus to the Royal Danish Embassy

08:30 - 11:30 Welcome by the Danish Ambassador Jørgen Molde

- Presentation from the Lithuanian Ministry of Energy on the Energy system with an emphasis

on DH – covering the framework conditions, present situation and future of the Lithuanian

energy market; planned investments, projects, funding, etc.

- Presentation from Lithuanian Association of District Heating on the drivers and the

challenges in the Lithuanian DH market

- Presentation from “Lietuvos energija” on new and upcoming DH projects in Vilnius and

Kaunas DH plants (ref. also the previous section)

- Presentation of Fortum on recently developed projects within the DH-sector in Lithuania

11:30 - 12:30 Networking lunch

12:30 - 17:00 Technical seminar and matchmaking meetings

- Key note speakers to be confirmed

- Exclusive matchmaking meeting sessions (pre-booked meetings between the seminar

participants)

17.00 - 17:15 Transportation from the Embassy to the hotel by bus

18:30 - 21:00 Dinner in a restaurant in the Old Town (with participation of invitees from todays seminar)

- Welcome by DBDH and Lithuanian District Heating Association

Tuesday, November 25th – Site visits and round table meetings

08.30 - 9:00 Transportation from the hotel by bus to “Vilniaus energija”

09:00 - 10:30 Visiting “Vilniaus energija” and Vilnius DH plant

10:30 - 11:45 Transportation to Kaunas by bus

11.45 - 13.00 Lunch in Kaunas Old town at own expenses

13:30 - 14:30 Round table meeting with Kaunas Municipality on future plans and DH-projects in Kaunas

15:00 - 16:30 Visiting “Kauno energija” and Kaunas DH plant

16:30 - 18:00 Transportation from Kaunas to Vilnius by bus

18:00 Travelling home



Prices

The price for participation in the event is as follows (per company):

Price for participation: 12.900 DKK

Price – SMV (50% discount): 6.450 DKK

For your information, the term “SMV” is defined by the Danish Ministry of Foreign Affairs, as a company which:

1) Have up to 100 employees, and

2) Have revenue up to 150 mio DKK

Prices are based on participation of min. 8 companies, and include all shared costs for the visit, local transport/

transfer during the stay, common buffet lunches and dinner arrangements with participation of the Lithuanian

stakeholders.

Only individual costs, such as travel to and from Lithuania, non-common meals/lunches and accommodation

are not included.

Pre-booking of hotels will be arranged; however, referring to the above, the hotel cost is not included in the

participation fee.

Do you want to join?

Please send an e-mail to the DBDH secretariat (Ricky Bjørkvik, [email protected]) before the 23rd of October 2014,

providing all relevant contact details for the participant(s) (name, number, title, e-mail).

If you need further information, please do not hesitate to contact us.

Best regards

Ricky Bjørkvik

Stæhr Johansens Vej 38

DK-2000 Frederiksberg

Mobile: +45 60 49 71 31

E-mail: [email protected]

www.dbdh.dk



LITHUANIA - BACKGROUND INFORMATION

Lithuania is one of the Baltic States that combine Scandinavian traits of progressive attitudes, order, cleanliness

and a natural and attractive environment with the Eastern European characteristics of new, rapid development.

As a market, Lithuania provides a unique blend of EU advantages and proximity to the markets of Scandinavia

and Western Europe, combined with access to the large eastern markets of Russia, Belarus and CIS.

Energy security and energy independence are the strategic priorities for the Government of Lithuania and the

energy sector is particularly important to Lithuanian economy. Strategic energy reforms in the electricity and

gas sectors are being successfully implemented, together with a gradual shift towards more efficient energy

production and greater use of renewable energy.

The European Parliament and Council Directive sets a mandatory national overall target for the share of

energy from renewable sources in the gross national consumption of energy in 2020. The target for Lithuania

is 23% of RES in the gross final consumption of energy in 2020 (including 10% of renewable energy in

transport).

Lithuania has prepared a new National energy sector development strategy 2014-2020. It this strategy the

main emphasis is also put on the modernisation of the existing district heating system in Lithuania.

Main national strategic plans in District Heating (DH) sector are: 1. to reduce dependence on one energy

source import from one country and to connect Lithuanian energy systems to EU internal energy systems; 2.

to increase a share on RES in energy resources balance within DH; 3. To increase energy efficiency in Central

DH sector by renovating houses and plants; 4. diversification of resources in Central DH sector.

The strategy also includes proposed activities by Lithuanian Ministry of Energy and Lithuanian Government

on allocation of national and EU funds for energy efficiency measures in District Heating (DH). The strategy

includes a number of new projects within district heating sector, including a construction of 2 new district

heating plants in Vilnius and Kaunas, which are 2 biggest cities in Lithuania.



It is planned that additionally about 40 MW heating boilers (in Jonava, Mazeikiai and other small cities) will

be installed by the end of 2014, however the most important DH projects in Vilnius and Kaunas, which will

influence the whole central heating balance, will start only in 2015.

It is planned that during 2014-2015 about 300 MW new district heating production (excluding Vilnius and

Kaunas district heating plants) systems will be installed in Kaunas city, Siauliai, Rokiskis, Joniskis, Salcininkai,

Radviliskis, Zarasai, Raseiniai, Utena, Ukmerge, Varena, Mazeikiai, Trakai, Vilnius region and other smaller

cities.

Lithuanian Ministry of Energy plans to allocate about 69.5 million EUR from EU structural funds for the

modernisation of Lithuanian DH sector during the period of 2014-2020.

District Heating (DH) sector in Lithuania is managed on a municipality level. Municipalities are managing the

DH sector in accordance with special DH sector plans, approved by the municipal councils. A municipality,

following the DH sector plan, organises the supply of heat to heat consumers. All DH supply companies

supply around 8-9 TWh of heat to heat consumers per year. Around 40% of the total heat amount is produced

in cogeneration plants. Natural gas is the main fuel in Lithuanian DH supply, followed by firewood and waste.

In Lithuania heat supply networks provide energy for heating and hot water preparation for 50,9% of all

household and public sector buildings. DH supplies 20.100 buildings, out of which: 17.500 are apartment

blocks, 2.600 are individual houses, 1.100 are business companies buildings and about 3.100 are public

buildings.

Almost all of the small heat supply companies (about 300) belong to municipalities. Bigger companies are

regulated by National Commission for Energy Control and Prices (NCC). The NCC performs the regulation

of the heat energy suppliers producing over 10 GWh of heat energy per year (98,07 percent of the total heat

energy quantity supplied to the district heating network in the country); the smaller heat supply undertakings

are regulated by the municipalities.

In 2013, in the heat energy sector the NCC was regulating 50 heat suppliers (33 were controlled by the

municipalities, 17 were the undertakings operating on the basis of leasing (concession) agreements. In

2013, the NCC was also regulating 8 independent heat producers and 17 non-regulating independent heat

producers.

Based on the current developments in Lithuanian DH sector, there can be a direct interest for Danish companies

to participate in the projects, which will be implemented in different municipalities within DH sector. Moreover,

a new business entity “Lietuvos energija” was established in June 2014 in order to coordinate the whole

project implementation. It is a right timing for Danish companies to introduce their technologies, know-how,

solutions and services to relevant target groups and project coordinators.

associated structures, and experts of the energy sector, also anyone who finds the topics important and who

wants to participate in the discussions.



GENERAL INFORMATION ABOUT LITHUANIA

Lithuania is located on the eastern coast of the Baltic Sea with an area of 65,303 sq. km and has common

borders with Latvia in the north (588 km), Belarus in the southeast (653 km), Poland in the south-west (104

km), and the Kaliningrad region of the Russian Federation, also in the southwest (249 km). The geographical

centre of Europe is 24 km to the north of Vilnius, which is the capital of Lithuania.

Capital: Official language:Area:Population:National currency:

Geographical situation:Neighbouring countries:Independence:Form of Government:Head of State:International membership:

Largest cities(number of inhabitants):

Administrative division:

Ethnic composition (%):

Religion:

Life expectancy:

Landscape:Climate:

VilniusLithuanian65.303 km22.979.000Litas (LTL) 3,4528 Lt = 1 euro (until December 31, 2014)Euro (EUR) from January 1, 2015Lithuania is a state in Northern EuropeLatvia, Belarus, Poland, and RussiaAnnounced on 16 February 1918 / Restored on 11 March 1990Parliamentary democracyPresident - Dalia Grybauskaitė (re-elected in 2014)Government of the Republic of Lithuania (Algirdas Butkeviėius - Prime Minister since 13 December 2012)NATO member since 29 March, 2004Member of European Union since 1 May, 2004Vilnius (538 700)Kaunas (307 500)Klaipėda (158 900)Šiauliai (106 800)Panevėžys (97 600)The territory of Lithuania is divided into 10 counties.Counties are subdivided into 60 municipalities.Municipalities consist of 546 eldershipsLithuanians: 84,2Poles: 6,6Russians: 5,8Belarusians: 1,2Other: 2,2The total number of nationalities living in Lithuania is 154Most Lithuanians belong to Roman Catholic Church. There are also Eastern Orthodox, Evangelical Lutheran, Reformed Church, Eastern Orthodox, Judaism, Islam and other religions.Average life expectancy in Lithuania is 73,7 yearAverage female life expectancy is 79,1 yearAverage male life expectancy is 68,1 yearLithuania is a flat land with plains covering approximately 75% of the countryRanges between maritime and continental. The average temperatures are +19°C in July and -3°C in January.



TOURISM INFORMATION

VILNIUS OLD TOWN - THE HISTORICAL CENTER

Vilnius Old Town is one of the largest (approximately 360 ha, over 1,500 buildings) and most beautiful old

towns in Central and Eastern Europe. Despite invasions and partial destruction, it has preserved an impressive

complex of Gothic, Renaissance, Baroque and Classical buildings as well as its medieval layout and natural

setting – this was the primary justification for inscribing Vilnius Historical Centre on the UNESCO World

Heritage List in 1994.

The main landmarks – the Gediminas Castle on the top of a hill and the Cathedral, rebuilt several times, on

the foot of the hill. The olden rulers of the country lie buried in the vaults of the Cathedral. A monument to

Gediminas, the reputed founder of Vilnius, was built in the Cathedral Square. More to that, flooding with

manmade and natural parks and groves, squares and lawns, the capital of Lithuania is considered to be one

of the greenest capitals in the world. The hills surrounding the historical centre of the town may serve as a

perfect site for enjoying its spectacular panorama.

Vilnius, the name of the capital of Lithuania, was first mentioned in 1323 in a letter of Gediminas, the Grand

Duke of Lithuania. In the letter, Gediminas invited European merchants and craftsmen to come and settle

in Vilnius and promised them every support. Since then, Vilnius has been famous for its tolerance towards

different nations and religions. Names of streets in the old town (German, Jewish, Tartar, and Russian streets)

and shrines of nine religions testify to the multinational composition of the population.

TRAKAI

Trakai used to be a capital of Lithuania for many years in medieval times and the place of residence of

Lithuanian rulers. The medieval Peninsular Castle of Trakai has survived in ruins as it was badly damaged

by wars with Sweden and Russia in the middle of the 17th century. Later the ruins were conserved and one

13-meter-high fort-tower was reconstructed fully rebuilt in the 1950s. Today, the Castle houses the Trakai

History Museum. This is the only castle on an island in Europe.

Trakai Historical National Park recognised by international standards as one of the most valuable landscapes

of Lithuania, which makes Trakai attractive not only to admirers of castles. Trakai is also called the capital

of Lithuanian Karaites: the town has been home to the Karaite community for over 600 years; this religious

community owns hundred-year-old dwelling and praying houses here and has two cemeteries.



PRACTICAL INFORMATION

GETTING AROUND.

Please note that your Delegation will be accompanied by the representative from the Royal Danish Embassy

during the whole visit and a bus will take you to all places, included in the meeting programme if it requires

transportation.

However, Vilnius is a very nice city and you are more than welcome to spend some time on your own. It is

quite safe to visit most restaurants and cafes in the city centre and Old Town.

All places are in a walking distance from your hotel, however in case you need to go somewhere and it needs

transportation, we strongly recommend calling a taxi. The Embassy cooperates with a taxi company “Vilnius

veza”, phone number +370 5 233 3337. You can always ask for a taxi at the hotel, shop, restaurant or café.

It is quite often that taxi drivers are cheating; therefore we do not recommend entering a taxi on a street,

especially if the car looks a little bit out of date.

Tips. It is quite normal to leave tips in restaurants and cafes if you liked the service, which was provided.

Amount of tips usually is 5-15 percent of your bill.

Shopping. Most shops and shopping centers in Lithuania are open 7 days a week from 10.00 to 22.00. Some

shops on the main street (Gedimino avenue) are opened 11.00-20.00 or 11.00-19.00. Exclusive shops, which

are located in the City Hall Square, are opened 11.00-19.00 or 11.00-17.00 during weekends. Big shopping

malls are located in a 10-15 minutes driving distance from the old town or city centre and are opened until

22.00. Food stores are opened 8.00-22.00 or 8.00-24.00. Souvenir shops are opened 10.00-20.00. Most of

them are located on Pilies and Didzioji street.

Smoking. Smoking is prohibited in all cafes, restaurants and clubs and all other public areas, except the ones

marked with a special mark as a smoking area.

Money. Credit cards are accepted in almost all shops, souvenir shops, restaurants and cafes, however in some

souvenir vendors on street you can pay only in cash. The unit of currency in Lithuania is Litas, which comes in

denominations of 10 Litas, 20 Litas, 50 Litas, 100 Litas, 200 Litas and 500 Litas notes and 1 Litas, 2 Litas and

5 Litas coins. 1/100 of Litas is called centas/centu (cnt.) and comes in 1 cnt, 2 cnt., 5 cnt. in silver color coins

and 10 cnt., 20 cnt. and 50 cnt. in gold color coins.



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