The Government approved a resolution on Wednesday to establish two entities of state importance in Vilnius and Kaunas.
"Further work will commence following the resolution, certain laws will be amended. (...) Everything will be carried out by announcing a public tender organised by Lietuvos Energija (energy company – ELTA). It has been tasked with the main objective to perform various calculations in order to reduce heat production price by up to 30%," Prime Minister Algirdas Butkevicius said after the Government sitting on Wednesday.
According to the head of the Government, it is expected that the combined heat and power plants in both Vilnius and Kaunas will be launched in autumn 2016.
The prime minister said the best option would be if the power plants were fired using biofuel, natural gas and waste.
More than LTL 600 million (EUR 174 million) from the EU funds are projected to be allocated for the reorganisation to Vilnius and more than LTL 400 million (EUR 116 million) to Kaunas.
As reported, special purpose heat sector entities will be established in the two cities as a part of the reorganisation procedure. They will either upgrade or build new cogeneration plants. 51% of the companies' shares will be controlled by energy company Lietuvos Energija.
