Company’s investments in the latest technologies (the reconstruction of heat generation facilities installing economizers, new biofuel burned boilers, automation of boiler-houses of integrated network, systems of electronic services, system of remote reading of heat meters and data transmission, customer service using “one stop” principle, etc.) help the Company to reduce the price of heat sold. Reconstruction of heat supply networks reduces Company’s heat supply losses. All these investments help the Company to adapt to market changes and to be an advanced company of heat and hot water supply, also of maintenance of heat production facilities in Kaunas and Jurbarkas cities and Kaunas district.
Investments are made in accordance with Company’s revised investment plan for the year 2016, which was approved by decision No T-202 of Kaunas City Municipality Council of 3 May 2016 “Regarding change of decision of Kaunas City Municipality Council No T-749 of 29 December 2015 “Regarding revised investment plan of AB Kauno Energija for the year 2016” and authorisation to sign changes” (hereinafter – Investment plan). EUR 44.54 million were planned to invest in Company’s assets according to approved Investment plan during the period of 2016.
The Company implements trunk pipeline replacement projects co-financed by the European Union structural funds, it also optimizes pipeline diameters, connects new objects to the DHN and modernises heat production facilities according to Investment plan.
Amendments to the Law on Heat Sector of the Republic of Lithuania and changes in NCC’s regulation allowed favourable conditions to invest to construction and reconstruction of heat production facilities, thus increasing competition in heat production sector and effectively reducing heat price for consumers.
In order to reach these goals, the Company continued modernization of its’ own heat generation facilities, installing new heat generation equipment in them. The following projects of heat generation facilities modernization were finished to implement:
The Company builds biofuel equipment coherently pursuing strategy of Company’s development, approved by city municipality council and reaching to further reduce heat price for consumers. By increasing and modernizing production capacities the Company increasingly occupies part of heat production market and it seems likely that it will produce in own production facilities and will supply to DHN more than 60 per cent of all heat demand in 2017.
The result of all of these already implemented investment projects is decreased price of heat for Company’s heat consumers. An average price of the heat sold was 5.02 ct/kWh in the year 2016 and in the year 2015 it was 5.40 ct/kWh, and in the year 2014 it was 6.69 ct/kWh.
In June 2016 the Company submitted 9 applications to the Lithuanian Business Support Agency under the measure No. 04.3.2-LVPA-K-102 “Modernisation and development of heat supply networks” 1 invitation of the 4 priority “Promoting energy efficiency and production and use of renewable energy” of Operational Programme for the European Union Funds’ Investments in 2014-2020:
Implementation of these projects started in 2016 and the accomplishment of them is scheduled in 2018. 9 agreements on financial support were signed with LBSA in December 2016. Total value of the projects is EUR 11.7 million. European Union Structural support in amount of EUR 5.8 million is assigned.
19 new objects with total installed capacity of 12.19 MW were connected to Company’s heat supplies network during the year 2016.