Long-term financing agreement will help increase Kruonis PSHP capacity and bolster energy independence

13 March 2024

A financing agreement for EUR 105 million has been signed on 12 March with the European Investment Bank (EIB) as part of the strategic development of Kruonis Pumped Storage Hydroelectric Power Plant (Kruonis PSHP). The investments will be directed towards the construction of the 5th unit with a capacity of 110 MW. The loan is provided for a period of up to 16 years.  

"We are delighted to sign the agreement with the European Investment Bank, which opens the door to new opportunities by expanding Kruonis PSHP infrastructure and implementing sustainable energy solutions for the future. The necessary investments will also increase electricity production and facilitate the development of green generation," says Jonas Rimavičius, Group CFO and Member of the Management Board.

With the installation of the 5th unit (110 MW), the capacity of Kruonis PSHP will increase to 1,010 MW (from 900 MW with 4 units, 225 MW each), which will make it one of the largest energy storage facilities in Europe. The 5th unit of Kruonis PSHP should be completed by the end of 2026.  

A consortium of companies Voith Hydro GmbH and Co. KG (St. Pölten, Austria) and Voith Hydro GmbH and Co KG (Heidenheim, Germany) will be responsible for constructing the Kruonis PSHP 5th unit, which is strategically important to Lithuania.  

The maximum capacity of the unit under construction will be 110 MW and it will have a wider range in generator mode, starting from 0 MW, and in pump mode it will be able to operate from 59 MW.

Currently, Kruonis PSHP operates 4 units with a maximum capacity of 225 MW each. Existing units can provide balancing services, but due to the changes in demand for additional services expected in the near future and the limited flexibility of existing units, their ability to provide some of the new frequency-control-related services will be limited.  

About Kruonis PSHP  

In order to enable the rapidly growing electricity production using renewable energy sources, it is necessary to efficiently utilise flexible large-capacity electricity storage facilities, such as Kruonis PSHP, which is operated by Ignitis Gamyba. This unique facility in the Baltic states today has the capacity to continuously supply electricity to the entire Lithuania for 12 hours at 900 MW. 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.