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ENERGY INDUSTRY OF LITHUANIA

Rymantas JuozaitisChairman of Lithuanian Member-Committee of WEC

Vilnius October 5, 2005

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LITHUANIA

• Population – 3.44 million;• Area – 65.3 thousand square km;• In the Middle Ages - the largest kingdom in Eastern

Europe (area – 930 000 square km); • Lithuania lost its independence in the end of the

eighteenth century;• Lithuania restored independence in 1918;• The USSR occupied Lithuania in 1940;• Lithuania once again restored independence in 1990;• Lithuania became the member of the EU in 2004.

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XIV c.

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MEMBERS OF LITHUANIAN MEMBER-COMMITTEE OF WORLD ENERGY COUNCIL

• Lithuanian Electricity Association;• Lithuanian Gas Association;• Lithuanian Nuclear Energy Association;• Lithuanian District Heating Association;• Association of Energy Consultants of Lithuania;• Geonafta AB;• Insurance Company “MARSH LIETUVA”;• Empower AB.

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SOME IMPORTANT DATES

1992 - Lithuania restored the WEC membership.

March, 1995 - the Law on Energy was adopted by the Parliament.

2004 - Lithuania became the member of NATO and the EU.

7SOME DATES OF ENERGY REFORMS

IN LITHUANIA

1995 - Joint stock companies were established in the energy sector of Lithuania.

1997 - The first step of reorganization of Lietuvos Energija AB. District heating utilities and CHPs were separated from Lietuvos Energija AB and transferred to municipalities.

1999 - Oil refinery Mažeikių Nafta AB was privatized.

2000 - Procedures of gas sector privatization were started.

2001 - Reorganization of Lietuvos Energija AB was completed.

2003 - West Distribution Company was privatized.

2004 - The second step of privatization of Lietuvos Dujos AB was completed.

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CLOSURE OF IGNALINA NPP

• The closure of Unit I was scheduled in 2004, Unit II - in 2009;

• Ignalina NPP produces more than 75% of electricity output in Lithuania;

• Ignalina NPP can be substituted by Lithuanian PP, but this power plant has to be upgraded to meet environmental requirements.

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CLOSURE OF IGNALINA NPP

• Unit I was shut down on December 31, 2004;

• The new Government’s Program states that Lithuania will remain

a nuclear country in the future.

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NEW INTERCONNECTIONS

• Poland – Lithuania;

• Estonia – Finland;

• Sweden – Lithuania.

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POWER GRIDS IN BALTIC SEA REGION

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Development of gas pipelines

TEN-E priority projects“Amber” projectPossible case of Yamal-Europe II

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THANK YOU!