The nation’s request for approval of €150 million ($168 million) in government aid for the project was found to be in line with European state aid rules prohibiting competition distortions, with the Commission adding that it also ‘benefits Lithuanian citizens and the environment’.
The plant is planned to generate power and district heating for Vilnius. It will feature two CHP units, an 18 MWe/53 MWth unit fuelled by the city’s non-recyclable waste and a 70 MWe/174MWth biomass-fuelled unit.
In its statement, the Commission said the project ‘promotes energy efficiency’ and is expected to generate energy savings of around 40%.
In addition, it said Lithuania had shown that the project would not have been profitable enough to proceed without financial assistance.