The European Investment Bank (EIB) provided €35 million to Kauno Energija, the utility business that serves Kaunas, the second-largest city in Lithuania, to improve and expand its district heating and hot water supply infrastructure.
This project, funded by the European Commission’s InvestEU program, aims to increase energy efficiency, encourage the use of renewable energy, and lessen dependency on imported natural gas.
With the support of the EIB, Kauno Energija will be able to add heat storage tanks, upgrade its district pipeline network, and include renewable energy sources including solar and biomass power.
These improvements will optimize the city’s energy usage, diversify its energy sources and contribute to Lithuania’s shift toward a carbon-neutral economy.
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About 40,000 people who live in Kaunas and Jurbarkas are expected to gain from the project, in addition to small and medium-sized enterprises.
Tomas Garasimavičius, the General Director of AB Kauno Energija, said, “With this second phase of investments, we will complete the implementation of major technological innovations and the city’s strategic climate change management objectives.”
He added, “The projects implemented represent a major technological renewal of the company, ensuring reliable, sustainable and efficient heat production and supply.”
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The EIB’s investment advances Lithuania’s national energy and climate targets and helps the EU achieve energy independence in Kaunas.
It also aligns with the larger goals of the InvestEU program and the EU’s Energy Union, which aim to accelerate investments in energy-efficient and sustainable European projects.