LITHUANIA`S NATIONAL ALLOCATION PLAN FOR GREENHOUSE

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LITHUANIA’S NATIONAL ALLOCATION PLAN FOR GREENHOUSE
GAS EMISSION ALLOWANCES FOR THE PERIOD 2005 TO 2007
(Revised)
15 12 2004
1.DETERMINATION OF THE TOTAL QUANTITY OF ALLOWANCES ............................... 2
2.ALLOCATION OF ALLOWANCES TO VARIOUS INDUSTRIES ....................................... 7
2.1.Principles for allocating allowances to various industries ........................................................ 7
2.2.Cement and lime production .................................................................................................... 8
2.3.Other industries ......................................................................................................................... 9
2.4.Electricity production and supply other users ........................................................................... 9
2.5.Heat energy production and transfer to other users ................................................................. 10
3.ALLOCATION OF ALLOWANCES TO DIFFERENT INSTALLATIONS ......................... 11
4.TECHNICAL ASPECTS ........................................................................................................... 16
4.1.Technological potential ........................................................................................................... 16
4.2.Early action .............................................................................................................................. 20
4.3.Clean technologies ................................................................................................................... 20
5.LEGAL AND POLITICAL BASIS OF THE EUROPEAN UNION ........................................ 21
5.1.Competition policy (Articles 81 - 82 and 87-88 of the Treaty) ............................................... 21
5.2.International market policy – new entrants (Article 43 of the Treaty) .................................... 21
5.3.Other legal and political measures .......................................................................................... 23
1.1.1.Assessment of impact of EU directives and other pollution reduction measures on the
sector participating in the emission trading scheme ..................................................................... 23
1.1.2.Assessment of impact of EU directives and greenhouse gas emissions reduction
measures on other sectors not covered by the emission trading scheme ...................................... 25
6.PUBLIC CONSULTATIONS .................................................................................................... 30
7.CRITERIA NOT LISTED IN ANNEX III TO THE DIRECTIVE .......................................... 31
8.ANNEX I – LIST OF INSTALLATIONS ................................................................................ 32
1. DETERMINATION OF THE TOTAL QUANTITY OF ALLOWANCES
On 19 November 2002 the Kyoto Protocol was ratified by the Seimas of the Republic of
Lithuania. Under the Kyoto Protocol Lithuania is committed to achieve an 8% reduction in
greenhouse gas emissions by the period 2008 to 2012 as compared to the greenhouse gas
emission levels in 1990.
The data presented in the Second National Communication on Climate Change of the Republic
of Lithuania shows that total greenhouse gas emissions in 1990, expressed as CO2 equivalent
(CO2e), were 54,35 Mt. Under the Kyoto Protocol Lithuania is committed to reduce its
greenhouse gas emissions to 50,03 Mt CO2e by 2008-2012.
The data presented in the Second National Communication on Climate Change of the Republic
of Lithuania shows that total greenhouse gas emissions in 1998, expressed as CO2 equivalent
(CO2e), were 23,8 Mt.
In assessing the trends of greenhouse gas emission projected for the period 2005 to 2007, the
following factors were taken into consideration:

The anticipated growth of the economy that corresponds to the fast economic growth
scenario under the Long-Term Economic Development Strategy of Lithuania Until 2015,
i.e. the GDP yearly growth rate of 7% in the period until 2010. The fast economic growth
scenario corresponds to the economy development trends in recent years (the growth of
GDP in 2001 was 6,5%, 2002 – 6.8%, 2003 – 8.9%) and the forecasts of the Ministry of
Finance of the Republic of Lithuania for the period 2004 to 2007, published on 20
February 2004 (projected GDP growth for 2004 - 7,0%, 2005 - 7.3%, 2006 - 6.6%, 2007
- 6.3%).

The anticipated decrease in the overall production of electric power in this country and
increase in the overall consumption of electric power in this country as well as the
scenario of decrease in export to other Baltic states after the closure of the first reactor
unit of Ignalina NPP, estimated in 2002 in the Economic Analysis of the Lithuanian
Electricity Sector prepared by Elkraft, LEI, Lietuvos Energija and COWI, from 19.5
TWh in 2003 and 20.0 TWh in 2004 to 18.0 TWh in 2005; 17.0 TWh in 2006, 16 TWh
in 2006.

The anticipated increase in electric power generated from renewable energy sources,
from 0.325 TWh in 2003 to 0.660 TWh by 2007 (under maximum volume of electric
power from renewable energy sources, for which purchase promotion procedure under
EU Directive 2001/77/EC applies, provided for in the Procedure for promotion of
production and purchase of electric power produced from renewable energy sources and
by-product energy).

The closure of the first reactor unit at Ignalina NPP in 2005, foreseen in the National
Energy Strategy of 2002, and its replacement with fossil fuel fired power stations, which
would result in an increase in electricity produced by thermal power stations from 3.0
TWh in 2003 to an average of 8.8 TWh by the period 2005 to 2007.

In compliance with the requirements laid down in EU Directives 2001/80/EC,
2001/81/EC, and 1999/32/EC, it is foreseen that equipment for removal of sulphur
dioxides from combustion products will be installed at Vilnius and Mažeikiai power
stations and at the Lithuanian Power Plant and, in addition to natural gas, two types of
cheapest fuel – fuel oil and orimulsion – will be used to generate power. It is expected
that other power stations will use mostly natural gas.

The foreseen gradual investments into new cogeneration facilities and modernisation of
the existing electric power generation equipment by 2005-2007, which would increase
the average efficiency of electric power generation at thermal power stations.
2

The implementation of all provisions set forth in the National Energy Strategy and the
requirements of EC directives. This would make it possible to reduce yearly greenhouse
gas emissions within the allowances trading sector by 1.13 Mt CO2e per year in the period
2005 to 2007.

The implementation of EC directives and pollution reduction measures in other sectors.
This would make it possible to reduce greenhouse gas emissions by approximately 1 Mt
CO2e per year from this sector by the period 2005 to 2007.

The anticipated industrial growth and the related increase in the greenhouse gas
emissions, taking into consideration the forecast prepared by the Lithuanian
Confederation of Industrialists and major industrial enterprises, verified by Ministry of
Economy (see Section 2).
It is forecast that by the period 2005 to 2007 average greenhouse gas emissions will amount to
27.3 Mt CO2e. This makes up 54.6% of the Lithuania‘s commitment under the Kyoto Protocol,
upon introduction of greenhouse gas emissions reduction measures in all sectors (Figure 1). If
greenhouse gas emission reduction measures are not implemented, their quantities would be
higher by 7% (assessment of the impact of EU directives on greenhouse gas emissions is
outlined in Section 5).
Allowances are to be distributed to 93 Lithuanian operators of installations.
The projected number of allowances to be distributed among the enterprises participating in
emission trading scheme in the period 2005 to 2007 within three years is 36.80 Mt.
Table 1. Number of allowances to be allocated in 2005-2007
Type of installation
Distributed
Distributed at no cost to energy enterprises
21711
Distributed at no cost to cement and lime producers
3770
Distributed at no cost to glass, brick and ceramic product
manufacturers
570
Distributed at no cost to oil processing companies
6623
Distributed at no cost to other industrial enterprises using
fuel in order to generate energy for their own needs and also to
paper factories
1730
Reserve for new entrants
1840
Distributed by an auction
552
Total
36796
It is foreseen to distribute allowances free of charge to the enterprises in the following parts:
40% in 2005, 30% in 2006 and 30% in 2007.
Figure 1 Pollution generated by enterprises participating in the emission trading scheme, after implementing
measures provided for in the allocation plan for allowances
3
14.000
New installations
Energy installations
12.000
Other industries
Oil production
10.000
Ceramics and brics production
kt CO2
8.000
Cement and lime production
6.000
4.000
2.000
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
The projected CO2 pollution emitted by enterprises participating in the emission trading system
in 2005-2007 according to the information provided by them and verified by the Ministry of
Economy will account for (including projected CO2 pollution emitted by new installations):

In industrial enterprises 14.03 Mt

In energy enterprises 22.76 Mt.
In total 36.80 Mt (approx. 12.27 per year) (however the establishment of new enterprises may be
possibly underestimated)
It will account for 44.9 % of the total amount of greenhouse gas emissions in this period.
In 1998 CO2 emissions from enterprises participating in the emission trading system accounted
for:

In industrial enterprises 3.312 Mt

In energy enterprises 5.189 Mt.
In total 8.50 Mt (however the pollution of then operating installations was not estimated).
It is accounted for 35.7 % of the total greenhouse gas emissions in Lithuania. The foreseen
increase of their share is related first of all with the closure of the first unit of Ignalina NPP and
with higher production output of fossil fuel-fired power stations covered by the emission trading
scheme.
98.5% of allowances will be allocated free and 1.5% of allowances will be allocated by an
auction. Unused allowances will be annulled.
The following measures intended to reduce greenhouse gas emissions from the sector that is not
covered by the emission trading scheme are foreseen:

Gradual implementation of EU Directive 2003/96/EC by introducing pollution tax on fuel
and electric power will result in energy consumers who are more interested in reducing
energy consumption in transport ant energy sectors.

Implementation of EU Biofuels Directive 2003/30/EC will result in wider use of biofuels
and provide tax exemptions to users and producers laid down in the Law on Biofuel and
4
lead to an increase of the biofuel share in transport to 2% by the end of 2005 and to
5.75% by the end of 2010. This would make it possible to reduce CO2 emissions in the
transport sector.

Implementation of the directives on reduction of pollution by gases from transport sector
(Directives 70/220/EC and 99/94/EC) which would result in the reduction of relative
emissions in the transport sector.

Implementation of the Lithuanian Housing Strategy Implementation Programme, which
provides for an increase in efficiency of heat consumption within the residential sector,
and, to that end, also using the funding from EU structural funds. Directive 2002/91/EC
on buildings will come into effect on 04 January 2006. It provides for regular
certification of buildings. These measures help increase heating efficiency of buildings.

As part of implementation of the requirements of Article 8 of Directive 2002/91/EC and
implementation of Directive 92/42/EEC relating to requirements for boilers placed on the
EU market, regular inspections of smaller fossil fuel boilers (from 20 kW) will be
performed. These measures will make it possible to increase average fuel efficiency in
small boiler plants.

Implementation of requirements relating to the increase in energy efficiency that are laid
down in integrated pollution prevention and control (IPPC) permits will result in higher
energy efficiency in those sectors which are not covered by the emission trading scheme.

Implementation of EU directives which provide for more efficient management of waste
landfills (1999/31/EC , 91/271/EC, 75/439/EC) will help reduce the greenhouse gas
emissions in waste landfills and encourage more efficient use of waste.

Implementation of Directives 79/530/EC, 79/531/EC, 96/57/EC, 2000/55/EC will
encourage more efficient use of energy in households.
The implementation of these measures will make it possible to reduce greenhouse gas emissions
by 1 Mt per year, see detailed description in Article 5.
According to projections, Lithuanian enterprises will not take more active part in joint
implementation and clean development projects in other countries. Emission reduction units and
certified emission reduction units obtained through joint implementation and clean development
projects in other countries after coming into effect of the Kyoto Protocol and the EU linking
directive will be converted into allowances.
It is expected that Kyoto Protocol mechanism - joint implementation projects will be
implemented in Lithuania and they will help achieve a reduction in greenhouse gas emissions
from those economy sectors not covered by the emission-trading scheme (see Section 5.3.1).
When determining the total quantity of allowances to be allocated to various sectors of economy,
technical pollution reduction potential must be taken into account (see Section 4.1).
When determining the total quantity of allowances to be allocated to various sectors of economy
the EU directives whose implementation has an impact on the greenhouse gas emissions shall
also be taken into account (see Section 5.3).
It is planned that part of allowances (which will account for 1.5% of the total quantity of
allowances). Revenues from sale of allowances will be used to cover pollution allowances
trading scheme administration costs.
Auctions of allowances will be organized by authorized Lithuanian institutions and they will be
open to all potential buyers.
In case the circumstances beyond the control of the Government of the Republic of Lithuania or
its economic entities arise, due to which the CO2 pollution of the installations of the participants
in emission trading scheme will increase substantially, the Government will reserve the right to
5
address to the EU Commission regarding the application of Force Majeure conditions by
providing the economic entities with additional number of allowances. As one of such possible
circumstances the Government of Lithuania considers a possible long-term full or partial
breakdown of the second reactor unit of Ignalina NPP, due to which the annual energy
production of thermal power stations will exceed the amount forecasted in national emission
trading scheme more than 20 %.
6
2. ALLOCATION OF ALLOWANCES TO VARIOUS INDUSTRIES
2.1.
Principles for allocating allowances to various industries
Allowances are distributed separately between the following industries:

Cement and lime production;

Glass, brick and ceramic production;

Oil processing;

Industrial enterprises, that burn fuel in order to generate energy for their own needs, paper
production enterprises;

Electricity generation and sale;

Heat generation and sale.
The quantity of allowances to be allocated to various sectors of industry within the period of one
year will be calculated using the following procedure:

First, information about emissions from specific enterprises operating within different
industrial sectors gathered for the period 1998 to 2002 – all emissions from enterprises
within the sector under consideration summed up after deducting emissions for the year
which represent the lowest level of pollution and the average pollution shall be calculated
as the average for the remaining four years. In case this average is lower in comparison
to the emission of 2002, then the pollution of the emission of 2002 will be considered as
the average. Average pollution from all enterprises of each sector (SEKT) is calculated.

Factor of the growth of economy in different sectors (AUG) is determined. When
determining this factor the projected growth of the GDP and forecasts prepared by the
Lithuanian Confederation of Industrialists and largest industrial enterprises are taken into
consideration. At this point only the growth of installations included in the emissiontrading scheme shall be estimated.

Technical potential for pollution reduction within different sectors POT (%) is estimated.
Technical potential for pollution reduction is verified by the Ministry of Economy.

Coefficient AUKC is applied in order to determine 1.5% of allowances to be distributed
by auction. AUKC = 1.5%.

The total quantity of allowances to be allocated to the enterprises of one particular
industrial sector is calculated using the following formula:
SEKT-K= SEKT x (1+AUG) x (1-POT) x (1-AUKC)
Table 2 Quantity of allowances to be allocated to industrial enterprises
SEKT
AUG
POT
SEKT-K
Cement and lime production
796 kt
78%
10%
1257 kt
Glass, brick and ceramic production
169 kt
52%
25%
190 kt
Oil processing
1638 kt
52%
10%
2208 kt
Other industrial enterprises, that burn fuel
in order to generate energy for their own
needs, also paper production enterprises
514 kt
52%
25%
577 kt
The total quantity of allowances allocated free of charge to industrial enterprises per 2005, 2006
and 2007 will be 12693 kt.
7
2.2.
Cement and lime production
It is expected that the cement and lime production industry will grow. Forecasts show that the
annual production of cement will increase from 656.6 thousand tonnes in the period of 19982002 (not taking into consideration the results for 2001 when the production of cement was at its
lowest) to 1,167 thousand tonnes by the period 2005 to 2007, i.e. 78%. Lime production is
expected to grow from 60.5 thousand tonnes in the period 1998 to 2002 (not taking into
consideration the results for 2001 when the production lime was at its lowest) to 116 thousand
tonnes by the period 2005 to 2007, i. e. by 92%.
AB Akmenės Cementas is the main producer of cement used in Lithuania. Although in the
period 2002 to 2003 the market share of the products of this enterprise decreased from 79 to
65%, it is planned that in the future (in the period 2004 to 2006) AB Akmenės Cementas will
increase its share of local cement market to 80%.
As compared to the previous years, the demand for cement in Lithuania within the period of
2002-2003 has grown considerably; with each year it increased by approximately 19%. It is
forecast that the Lithuanian cement market in the future will continue to grow – the market will
grow by an average of 15 per cent each year.
The growth of the cement market is closely related to the growth of the construction market. In
2002 the EKT Grupė prepared the Impact Assessment of Lithuania's Integration into the EU
which contained estimate of GDP growth within the construction industry of this country
following its accession. It is expected that in the period 2004 to 2007 as a result of Lithuania’s
accession into the EU the GDP within the construction industry will grow by 532 million litas
each year.
Another important indicator confirming the growth of the cement market is cement consumption
per capita. In 2002 cement consumption in Lithuania (143 kg cement/per capita), was almost 3.5
times lower than the average cement consumption per capita in EU countries in 2002 (508 kg
cement/per capita). Bearing in mind the fact that the cement consumption per capita in Lithuania
is lower than in many EU candidate countries and several times lower than the average level of
the EU, and also taking into consideration the planned rapid growth of the GDP following
Lithuania’s accession into the EU caused by the development of the construction sector, it would
be fair to predict that the consumption of cement in Lithuania will increase considerably.
Figure 2 Development of Lithuanian cement market.
Since 1995 AB „Akmenės cementas“ has carried out major repairs and introduced new
technologies for the value of 31.1 million litas. As a result of enterprise’s modernisation, modern
materials that meet the requirements of current standards were installed and part of the fuel used
in the production process was replaced with different type of fuel. In the period 2001 to 2002
8
investments were made into the construction of the coal unit of kiln No 7 and the enterprise
started replacing fuel oil with cheaper alternative – coal.
In the nearest future (2004 - 2005) the enterprise plans to invest additional 11 million into
construction of coal mill for Kiln No 8.
Bearing in mind the anticipated growth of the cement production and introduction of new type of
fuel, it is foreseen that the CO2 emissions from cement and lime production enterprises will
increase.
2.3.
Other industries
It is projected that other sectors of the industry will develop pro rata to the growth of the
economy (the GDP is expected to grow by 52% by the period 2005 to 2007 as compared to the
level of 1998 – 2002). The pollution reduction is estimated in a different way for different
industries having regard to the activity forecast provided by the enterprises as well as the part of
the energy efficiency measures provided for in the energy efficiency programme of the National
Energy Strategy are implemented.
2.4.
Electricity production and supply other users
The quantity of allowances to be allocated to the electric power generating sector is calculated
bearing in mind the fact that following the closure of the Ignalina NPP the average yearly
quantity of electric power generated by fuel fired electric power plants due to greater demands
for electric power, impact of EU Directive 2001/77/EC and reduction of electric power export,
will increase from 3.0 TWh (Lithuanian Energy, 2003) in 2003 to an average of 8.8 TWh
(“Economic analysis of electricity sector in Lithuania”, 2002 [25]) by the period 2005 to 2007.
Figure 3 The structure of electric power production in Lithuania in 1990-1997 (“Economic analysis of
electricity sector in Lithuania”, 2002 [25])
35,0
30,0
Production [TWh]
25,0
Kruonis HPAP
Other RE plants
Hydropower plants
Fuel combustion power plants
Ignalina NPP
20,0
15,0
10,0
5,0
07
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
20
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
19
19
90
0,0
The quantities of electric power generated each year in thermal power stations, type of fuel that
electric power intend to use and average efficiency of electric power generation are outlined in
Section 4.1.
The total projected quantity of allowances to be allocated to the existing installations of the
electrical power generating sector in the period 2005 to 2007, after considering the technical
saving potential, is 12.32 Mt.
9
The detailed assessment of pollution emitted from electric power generating units is given in
Section 4.1.
2.5.
Heat energy production and transfer to other users
The quantity of allowances to be allocated to the heat generating sector is based on presumption
that the average quantity of heat energy generated by now existing installations per year will
grow to 36.67 TWh in the period of 2005 – 2007 (At average 12.2 TWh per year). Additionally
0.3 TWh of heat will be generated by new installations.
Heat supply forecasts, types of fuel intended to use by heat generating plants, and the average
heat energy generation efficiency are presented in Section 4.1.
The total quantity of allowances to be allocated to the existing installations of the heat energy
generating sector in the period 2005 to 2007, after considering the technical saving potential, is
9.40 Mt.
The total amount of allowances allocated to enterprises participating in the activity of heat and
electricity supply will reach 98.5 % of the forecasted CO2 emissions, whereas 1.5 % will be
allocated by auction.
10
3. ALLOCATION OF ALLOWANCES TO DIFFERENT INSTALLATIONS
The quantity of allowances issued to electric and thermal power generating installations, the
main task of which is to supply power to the power and thermal grid and/or sell electric power to
other legal or natural persons will be calculated by multiplying the amount of energy planned to
supply from comparative pollution unit per one unit of energy.
The comparative pollution benchmark depends on the type of enterprise:

The electric power planned to supply from condensed power stations: 0.576 t/MWh

The electric power planned to supply from co-generation power stations with no
possibility to burn natural gases: 0.779 t/MWh

The electric power planned to supply from other existing co-generation power stations:
0.421 t/MWh

The heat planned to supply when there are no possibilities to burn natural gases: 0.2885
t/MWh

The heat planned to supply when there are possibilities to burn natural gases: 0.250 MWh
The comparative benchmarks are estimated in such a way that the total quantity of allowances,
by adding 1.5% of allowances to be allocated by auction, would not exceed the forecasted
pollution of large energy generating installations (See section 4.1).
The energy amount planned to supply is submitted by the operators, however this amount may
be corrected by the decision of the Ministry of Economy of the Republic of Lithuania. The
energy amount may be increased after evaluating the closure of other energy generating plants
(including the first reactor unit of Ignalina NPP).
Table 3. The quantity of electric power planned to supply from current installations during 2004-2007:
Installation
operator
UAB "Vilniaus
energija"
UAB "Vilniaus
energija"
AB "Klaipėdos
energija"
Property Fund of
Republic of Lithuania
AB "Panevėžio
energija"
AB "Kauno energija"
Name of
installation
Vilnius
power
plant No2
(E-2)
Vilnius
power
plant No3
(E-3)
Klaipėda
power
plant
Mažeikiai
power
plant
Panevėžys
District
Boiler
Plant No. 1
Petrašiūnai
power
plant
Address
Quantity of
electric power
planned to
supply during
2005-2007
[MWh]
Comparative
pollution
benchmark
(quantity of
allowances
issued per 1
MWh)
Savanorių
avenue 117/2
418 950
0,421
Jočionių Str.
13
4 560 000
0,421
Danės 8,
Klaipėda
83 000
0,421
village of
Juodeikiai,
Mažeikių
region
2 102 400
0,779
Pušaloto Str.
191,
Panevėžys
32 895
0,421
Jėgainės Str.
12, Kaunas
36 000
0,421
11
AB Lietuvos elektrinė
Lithuanian
power
plant
UAB "Kauno
termofikacijos
elektrinė"
Kaunas
power
plant
Elektrinės Str.
21,LT-4061,
Elektrėnai
Taikos
avenue 147,
LT-51142,
Kaunas
In total:
12 595 596
0,576
3.000.000
0,421
22 828 841
Table 4 The quantity of thermal power planned to supply from current installations during 2004-2007
Installation
operator
Name of
installation
AB "Jonavos šilumos
tinklai"
AB "Jonavos šilumos
tinklai"
UAB "Mažeikių
šilumos tinklai"
UAB "Raseinių
šilumos tinklai"
UAB "Ukmergės
energija"
UAB "Ukmergės
energija"
Jonava District
Boiler Plant
Girelė District
Boiler Plant
Mažeikiai Boiler
Plant
Raseiniai Boiler
Plant No.4
Ukmergė Boiler
Plant No.1
Klaipėda Boiler
Plant No.7
Molėtai local
neighbourhood
boiler plant
Šilutė District
Boiler Plant
Vilnius Power
Plant No-2 (E-2)
Vilnius Power
Plant Nr-3 (E-3)
District Boiler
Plant No.2
(District Boiler
Plant-2)
District Boiler
Plant No.6
(District Boiler
Plant-6)
District Boiler
Plant No.8
(District Boiler
Plant-8)
Širvintos Boiler
Plant No. 3
Šiauliai Southern
Boiler Plant
Rekyva Boiler
Plant
Klaipėdos Str. 8,
Jonava
Ukmergės Str. 20,
Jonava
Montuotojų Str. 7,
Mažeikiai
Žemaičių Str. 9,
Raseiniai
Šviesos Str. 17,
Ukmergė
Nemuno Str. 2,
Klaipėda
Tilvytis Boiler
Plant
Tilvyčio Str. 15,
Kuršėnai
UAB "Molėtų šiluma"
UAB "Šilutės šilumos
tinklai"
UAB "Vilniaus
energija"
UAB "Vilniaus
energija"
UAB "Vilniaus
energija"
UAB "Vilniaus
energija"
UAB "Vilniaus
energija"
UAB "Širvintų
šiluma"
AB "Šiaulių energija"
AB "Šiaulių energija"
AB "Šiaulių
energija", Tilvyčio
katilinė
Address
Mechanizatorių Str.
7, Molėtai
Klaipėdos Str. 6a,
Šilutė
Savanorių pr.
117/2
Quantity of
thermal power
planned to
supply during
2005-2007
[MWh]
Comparative
pollution
benchmark
(quantity of
allowances
issued per 1
MWh)
412,500
0.25
115,050
0.25
615,000
0.2885
126,000
0.2885
176,900
0.25
402,000
0.25
93,000
0.2885
240,447
0.2885
3,900,000
0.25
Jočionių Str. 13
6,580,000
0.25
Pramonės Str. 95
292,800
0.25
Paplaujos Str. 9
90,000
0.25
Ateities Str. 10
630,000
0.25
100,134
0.25
1,647,000
0.25
30,690
0.25
57,300
0.25
Žibalų Str. 16,
Širvintos
Pramonės Str. 10,
Šiauliai
Energetikų Str. 20,
Šiauliai
12
AB "Šiaulių
energija", Daugėlių
katilinė
AB "Klaipėdos
energija" Klaipėdos
rajono šilumos tinklai
AB "Klaipėdos
energija"
UAB "Radviliškio
šiluma"
UAB "Utenos
šilumos tinklai"
Tauragė District.
Municipality
Property Fund of
Republic of Lithuania
Šalčininkų šilumos
tinklai
Pravieniškių 2-ieji
pataisos namai
UAB "Varėnos
šiluma"
AB "Panevėžio
energija"
AB "Panevėžio
energija"
AB "Panevėžio
energija"
AB "Panevėžio
energija"
AB "Panevėžio
energija"
UAB "Geoterma"
AB "Kauno energija"
AB "Kauno energija"
Daugėliai Boiler
Plant
Pramonės Str. 18c,
Kuršėnai
37,500
0.25
Gargždai Boiler
Plant No. 4
J. Janonio Str. 38,
Gargždai
89,130
0.25
Klaipėda Power
Plant
Radviliškis City
Boiler Plant
Utena District
Boiler Plant
Tauragė-Beržė
District Boiler
Plant
Mažeikiai Power
Plant
Šalčininkai
Central Boiler
Plant
Danės Str. 8,
Klaipėda
Žironų Str. 3,
Radviliškis
Pramonės Str. 11,
Utena
1,112,000
0.25
204,000
0.25
540,000
0.25
Paberžių Str. 16,
Tauragė
279,000
0.2885
Juodeikiai
Mažeikiai District.
3,512,132
0.2885
Pramonės Str. 2a,
Šalčininkai
106,380
0.25
64,072
0.2885
210,000
0.2885
Senamiesčio Str.
113, Panevėžys
790,500
0.25
Pramonės Str. 7,
Rokiškis
350,000
0.2885
Pušaloto Str. 191,
Panevėžys
902,640
0.25
Mūšos Str. 16,
Pasvalys
116,200
0.25
Taikos Str., Zarasai
118,630
0.2885
699,900
0.25
801,000
0.25
63,000
0.25
66,000
0.25
Boiler plant
Varėna Boiler
Plant
Panevėžys
District Boiler
Plant No 2
Rokiškis District
Boiler Plant
Panevėžys
District Boiler
Plant-1
Pasvalio District
Boiler Plant
Zarasai Boiler
Plant No.4
Klaipėda
Geothermal Plant
Petrašiūnai
Power Plant
Pergalės Boiler
Plant
Pravieniškės-2,
Kaišiadorys District
J.Basanavičiaus
Str. 56, Varėna
Lypkių Str. 53,
Klaipėda
Jėgainės Str. 12,
Kaunas
Karo ligoninės Str.
31, Kaunas
Varnių Str. 48,
Kaunas
AB "Kauno energija"
Šilko Boiler Plant
AB "Kauno energija"
Noreikiškės
District Boiler
Plant
Noreikiškės,
Kaunas District.
102,480
0.25
AB "Kauno energija"
Garliava District
Boiler Plant
St.Lozoraičio Str.
17a, Garliava,
Kaunas
136,263
0.25
138,200
0.2885
99,300
0.2885
25,017
0.25
66,000
0.25
UAB "Ignalinos
šilumos tinklai"
Jurbarkas District
Boiler Plant
Central Boiler
Plant No 2
SP UAB "Plungės
šilumos tinklai"
Plungė Boiler
Plant No 1
SPUAB "Birštono
šiluma"
Birštonas District
Boiler Plant
AB "Kauno energija"
Vasario 16-sios Str.
31, Ignalina
V. Mačernio Str.
19, LT-90142
Plungė
B.Sruogos Str. 23,
Birštonas
13
UAB "Litesko" filialas
"Druskininkų šiluma"
UAB "Litesko" filialas
Biržų šiluma"
UAB "Litesko" filialas
"Vilkaviškio šiluma"
UAB "Litesko" filialas
"Telšių šiluma"
UAB "Litesko" filialas
"Kelmės šiluma"
UAB "Litesko" filialas
"Palangos šiluma"
Pramonės Boiler
Plant
Rotušės Boiler
Plant
Vilkaviškis Boiler
Plant
Luokė Boiler
Plant
Mackevičiaus
Boiler Plant
Palango Boiler
Plant
Pramonės Str. 7,
Druskininkai
Rotušės Str. 20a,
Biržai
Birutės Str. 8a,
Vilkaviškis
Lygumų Str. 69,
Telšiai
Mackevičiaus Str.
10, Kelmė
Klaipėdos pl.63,
Palanga
UAB "Litesko" filialas
"Marijampolės
šiluma"
Kazlų Rūda
Boiler Plant
UAB "Litesko" filialas
"Marijampolės
šiluma"
384,838
0.25
108,325
0.25
120.342
0.25
222,503
0.25
79,086
0.2885
272,716
0.25
Gedimino Str. 1,
Marijampolė
63,636
0.25
Marijampolė
District Boiler
Plant
Gamyklų Str. 8,
Marijampolė
556,856
0.25
UAB "Litesko" filialas
"Alytaus energija"
Alytus District
Boiler Plant
Alytus
1,247,802
0.25
AB Lietuvos
elektrinė
Lithuanian Power
Plant
Elektrinės Str.
21,LT-4061,
Elektrėnai
558,000
0.25
UAB "Kauno
termofikacijos
elektrinė"
Kaunas Power
Plant
Taikos pr. 147,
51142, Kaunas
5,379,000
0.25
UAB "Kaišiadorių
šiluma"
SP UAB "Kretingos
šilumos tinklai"
AB "Klaipėdos
energija"
AB "Klaipėdos
energija"
AB "Klaipėdos
energija"
Kaišiadorys
Boiler Plant
Kretinga Boiler
Plant No 2
Klaipėda district
boiler plant
Lypkių district
boiler plant
Gargždai district
boiler plant No 2
Basanavičiaus Str.
42, Kaišiadorys
Melioratorių Str.10,
Kretinga
Šilutės pl. 26,
Klaipėda
Lypkių Str. 57
Klaipėda
P. Cvirkos Str. 15,
Gargždai
120,000
0.25
100,753
0,25
1,059,000
0.25
204,000
0.25
53,050
0.25
In total:
36,668,072
Allowances to other installations, i.e. to other industrial enterprises shall be allocated on the
basis of average emissions for the period 1998 to 2002 and calculated by multiplying this
number (after excluding the year during which greenhouse gas emissions levels were at the
lowest (average IM.VID)) by the ratio of the number of allowances distributable among the
enterprises of the corresponding sector and the total average emissions from all enterprises of
that sector for the period 1998 to 2002 (in each case, the year during which pollutant emissions
from an individual enterprise were lowest shall be deducted):
TLI= IM.VID x SEKT-K / SEKT
If in 2002 the CO2 pollution exceeds the pollution average within the period of four years 19982002 (excluding the year when CO2 pollution is lowest), the average of CO2 pollution IM. VID.
is taken as equal to the CO2 pollution of the year 2002. Therefore, extension of the production
and installation of new equipment is evaluated at the end of the period of 1998-2002.
If an industrial enterprise mounted new installations after December 31, 2002, it may obtain an
additional quantity of allowances from the reserve for new installations (see section 5.2). the list
14
of such installations will be revised and these allowances are not allocated in the National
Allocation Plan.
All enterprises whose installations are included into the emission trading system were asked to
provide preliminary information on fuel consumption and CO2 emissions from production
activities for the period 1990-2002.
The survey was carried out whether the pollution monitoring of individual enterprises conforms
to the procedures provided for in the EU monitoring and reporting guidelines. The full
verification of submitted data has not been performed.
When allocating allowances to individual enterprises the quantity of allowances issued to each
enterprise is not specially adjusted depending on its early action – investments into emission
reduction measures made prior to that date.
It is not forecasted to include the enterprises in the 2005-2007 emission trading scheme whose
activities fall within the categories of activities listed in Annex I to Directive 2003/87 but whose
production capacities are lower that those specified in Annex I to the aforementioned Directive.
There are no plans to exclude before 31 December 2007 from the emission trading system
individual installations meeting the criteria laid down in Annex I to the Directive.
It is not forecasted to grant greenhouse gas emission allowances to the fuel combusted during the
technological process in chemical industry enterprises. Only the installations generating electric
and thermal power in the chemical industry enterprises will be considered as fuel combusting
installations – boilers and power plants.
15
4. TECHNICAL ASPECTS
4.1.
Technological potential
Certain currently existing economically sound modernization opportunities, which could be
implemented without gaining revenues from sale of saved allowances, were also taken into
consideration when determining the total quantity of allowances to be allocated.
Market changes, growth of the economy, and changes within the electric power production
structure following the closure of the first reactor unit of the Ignalina Nuclear Power Plant were
also taken into account.
The changes in the market of electric power production after the closure of the first reactor unit
of Ignalina NPP will be evaluated having regard to the forecasted growth of load on thermal
power plants (When evaluating the quantity of allowances granted to energetic sector, it is
forecasted that after the closure of Ignalina NPP the average annual quantity of electric power
generated by fuel combusting power plants, after evaluation of the growth of the electric power
needs, implementation of EU Directive 2001/77/EB and the decrease in electric power export
will go from 3.0 TWh (“Energy of Lithuania”. 2003) in 2003 up to the average level of 8.5 TWh
(“Economic analysis of electricity sector in Lithuania”, 2002 [25]) in the period of 2005-2007.
When determining the quantity of allowances to be allocated to industrial enterprises it was
presumed that the efficiency of energy consumption in industrial enterprises will increase
following implementation of part of the measures provided for in the National Energy Efficiency
Programme that are economically sound and have a short payback period. On the other hand, the
growth of production output is also anticipated.
When calculating the total quantity of allowances to be allocated to electric power producers, yet
another factor is taken into consideration: the modernisation of the Lithuanian Power Plant, the
successor of the Ignalina NPP, which will be equipped with installations for combustion high
sulphur content fuel oil and orimulsion, reach higher levels of efficiency. Also, part of the
requirements of EU Directive 2001/77/EC will be implemented and this will result in an increase
in the use of renewable energy sources for the production of electricity and the share of “green”
electricity by 2010 will be increased to 7%, first of all by wider use of wind power in the western
part of Lithuania.
The projected capacities of cogeneration thermal power stations for the period 2005 to 2007
were determined on the basis of the data on the planned development of existing capacities and
growth of production output that had been provided by enterprises.
The Lithuanian Power Plant will be major source of electric power and it will replace the first
reactor unit of the Ignalina NPP. There is no limit imposed on its capacities, therefore upon the
closure of the Ignalina Nuclear Power Plant the Lithuanian Power Plant will supply all the
required quantity of electric power minus the electric power produced by other thermal power
stations.
With an increase in the quantity of electric power produced by cogeneration power plants and
power plants using renewable energy sources, in the period 2005 to 2007 the output of the
Lithuanian Power Plant will decrease with each year.
The electric power quantities planned for generation will be coordinated with The Ministry of
Economy of the Republic of Lithuania.
Especially large energy quantities are planned to be supplied from the power station of Lithuania
in 2005 after the closure of the first reactor unit of the Ignalina Nuclear Power Plant.
Subsequently, after the mounting and modernization of new power plants in Latvia and Estonia
and after the decrease in electric power export, as well as by increasing the capacities of other
Lithuanian power stations, the part of the power station of Lithuania in the overall market of the
Lithuanian electric power will decrease.
16
Figure 4 The structure of production of thermal power stations in 1990-2007
14,0
12,0
Production [TWh]
10,0
Other small CHP
Other large CHP
Kaunas CHP
Mažeikiai CHP
Vilniaus CHP-2 & CHP-3
Lithuanian condensing power plant
8,0
6,0
4,0
2,0
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
0,0
Table 5The anticipated structure of electric power supplied by thermal power plants in different years
(Supply to electric grid GWh)
1998-2002
(average)
Lithuanian Power Plant
1010
Mažeikiai Thermal Power Station
295
Vilnius Thermal Power Station No 2 and No 3
759
Kaunas Thermal Power Station
298
Other large thermal power stations
50
2005
2006
2007
6256
701
1374
700
143
4145
701
1755
1000
377
2195
701
1851
1300
521
The structure of fuel used by thermal power stations for the period 2005 to 2007 for individual
stations is laid down on the basis of 24 December 2003 Order No 712 of the Minister of
Environment of the Republic of Lithuania which provides the allowable pollution emissions
from fuel fired large combustion installations. An exception was made for the Mažeikiai
Thermal Power Station which at present does not have natural gas available for combustion. It is
anticipated that this thermal power station will form a joint structure with Mažeikių Nafta and
will be able to use pure fuel oil under the exception provided for in the Directive on limitation of
sulphur dioxide content in liquid fuels. Also, consideration was given to the Lithuanian Power
Plant desulphurization equipment installation time schedule and modernization plans, as well as
to plans for the modernisation of other power plants and for desulphurization equipment
installation.
In order to reduce the price of generated electric power and thereby compensate, at least in part,
the rise of electric power price to users following the closure of the Ignalina NPP, those thermal
power stations that have necessary equipment will start using cheaper imported fuel –
orimulsion. The option to use orimulsion and fuel oil is very important to Lithuanian power
companies in terms of safety, because such an option provides them with an opportunity to
diversify the content of fuel used and reduce their dependency on gas supplies from only one
country.
By 2005 only the eighth unit (300 MW) of the Lithuanian Power Plant will have been equipped
with desulphurization equipment. It would be possible to use it only as an orimulsion fired unit.
17
Therefore the quantity of orimulsion consumed by 2005 could amount up to 20% of the total
fuel used by the Lithuanian Power Plant. Other units, not equipped with desulphurization
equipment, could use natural gas (60%) and sulphur containing fuel (40%), i.e. one half
orimulsion and the other half – fuel oil. Kaunas Thermal Power Station and Vilnius Thermal
Power Station No 2 could use 60% of natural gas and up to 40% of fuel oil, Vilnius Thermal
Power Station No 3 would use 60% of natural gas and up to 40% of fuel oil and orimulsion.
Mažeikiai Thermal Power Station would use only fuel oil. New cogeneration plants would use
natural gas.
By 2006 desulphurisation equipment will be installed in Unit 7 of the Lithuanian Power Plant; by
the end of that year such equipment will be installed also in Units 6 and 5 (300 MW). Therefore
it will be possible to use these units with a capacity of 2300 MW only for orimulsion. As
compared with 2005, the consumption of orimulsion at the Lithuanian Power Plant could
increase almost twofold and orimulsion could account for 40% of all fuel consumed. Kaunas
Thermal Power Station and Vilnius Thermal Power Station would use 60% of natural gas and up
to 40% of fuel oil. Mažeikiai Thermal Power Station would use only fuel oil. New cogeneration
plants would use only natural gas.
In 2007 desulphurisation equipment will be installed in Units 1 and 2 (150 MW) of the
Lithuanian Power Plant. The consumption of orimulsion at the Lithuanian Power Plant could
account for up to 80% of all fuel consumed. Kaunas Thermal Power Station and Vilnius Thermal
Power Station could use 60% of natural gas and up to 40% of fuel oil. Mažeikiai Thermal Power
Station would use only fuel oil. New cogeneration plants would use only natural gas.
It is anticipated that in compliance with the requirements laid down in EU Directives
2001/80/EC, 2001/81/EC,1999/32/EC, Vilnius, Kaunas and Mažeikiai power plants will be
equipped with desulphurisation equipment and will use the cheapest type of fuel – fuel oil and
orimulsion. This desulphurisation equipment will be installed not earlier than 2005 - 2007.
Other power stations will use mostly natural gas, whereas fuel oil would be used as reserve fuel.
Figure 5 Structure of fuel used by thermal power stations (maximal possible use of fuel oil and orimulsion)
100,0%
90,0%
80,0%
70,0%
60,0%
Other
Orimulsia
Heavy fuel oil
Natural gas
50,0%
40,0%
30,0%
20,0%
10,0%
0,0%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
By subsequently evaluating the fuel costs and CO2 emissions of cogeneration electric power
plants while generating electric power, the fuel costs and CO2 pollution while generating heat
will be separated by applying heat generation efficiency 86.5%.
18
Table 6 Assessment of benchmark pollutant emissions per electric power produced (t CO2/MWh el)
1998-2002
(average)
Lithuanian Power Plant
Mažeikiai Power Plant
Other large thermal power plants
0.698
0.989
0.301
2005-2007
(average planned by
enterprises
0.681
0.720
0.298
It is forecasted that the efficiency of Mažeikiai Power Station will grow since the station is going
to supply more heat in cogeneration regime.
It is forecasted that the benchmark pollution of Lithuanian Power Plant and other large thermal
power stations will decrease due to increased energy generation efficiency.
The overall projected quantity of electric power generated by large thermal power stations in the
period 2005 to 2007 is 23.7 TWh and total quantity of CO2emitted into the air - 12.81 Mt.
Approximately 12.51 Mt will be emitted by current installations. Average relative pollutant
emissions for the period 2005 to 2007 will amount to 0.541 t CO2/MWh.
It is planned that within the period of 2005-2007 22.8 TWh of energy will be generated by the
installations existing at present, 0.8 TWh will be generated by the installations, to which the
allowances will be granted from the reserve for new installations.
These quantities do not include electric power and pollution while generating electric power in
industrial enterprises.
When determining the quantity of allowances to be allocated to enterprises of heat energy
generating sector participating in the emission trading scheme it is important to take into account
the fact that according to the forecasts provided by the operators and verified by the Ministry of
Economy the annual amount of the supplied heat from the power plants operating at present will
reach approximately 12.2 TWh and will nearly reach the amount of the supplied heat in 1998
(12.5 TWh). As a comparison – in 2002 these enterprises supplied to the network 10.0 TWh of
heat. Such recent growth in the demand of heat may be explained by the recovery of economy,
the growing demand for heat and comfort and a tendency to reduce the maintenance costs of
boiler plants of central heating systems by centralizing heat supply therefore central power
stations are often chosen instead of several small boiler plants. It is anticipated that the total
amount of heat supplied by currently existing power plants in 2005-2007 will grow to 36.67
TWh, in addition approximately 1.82 TWh of heat per year will be supplied by the power plants
that are to obtain the allowances in the future from the reserve for new installations.
The average anticipated CO2 pollution per one MWh of generated heat is approx.0.259 t
CO2/MWh, while evaluating the pollution generated in cogeneration power plants that supply
heat to thermal grid.
Total quantity of CO2 that would be generated by central heating networks from large energy
enterprises in emission trading scheme in the period 2005 to 2007 will reach approx. 9.95 Mt.
Approx. 9.55 Mt whereof will be emitted into the atmosphere by currently operating
installations.
4.2.
Early action
When allocating allowances to different enterprises the quantity of allowances issued to each of
them is not specifically adjusted in view of its previous actions – investments into pollution
reduction measures made prior to that date.
Since allowances are allocated to electric power and heat energy generating enterprises under
equal emission benchmarks used for the installations of different groups, those electric power
19
and heat energy generating enterprises that have made prior investments into pollution reduction
and whose relative emissions are lower than the determined emission benchmark will be in a
more favourable situation.
4.3.
Clean technologies
When allocating allowances to new market entrants, the quantity of allowances shall correspond
to the benchmarks for pollution emissions from clean technologies that correspond to the best
available technologies as defined in Directive 96/61/EC.
20
5. LEGAL AND POLITICAL BASIS OF THE EUROPEAN UNION
5.1.
Competition policy (Articles 81 - 82 and 87-88 of the Treaty)
No requests have been received from operators willing to form pools.
International market policy – new entrants (Article 43 of the Treaty)
5.2.
5% of the allowances allocated for the period 2005 to 2007, i.e. 1,839,815 t, will be transferred
to the reserve intended for new market entrants.
Allowances from the reserve intended for new market entrants: for glass, brick and ceramic
product manufacturing, paper production, oil processing, and metal casting installations whose
production capacities set forth in Annex I to Directive 2003/87/EC, and also for newly formed
industrial enterprises in which fuel combustion installations covered by the emission trading
scheme, are allocated:

For new installations that start activities after 1 January 2003 and are located at the
different address or owned by the different operator.

For new installations that start activities after 1 January 2003 and are located at the
existing installations at the same address and owned by the same operator (e.g., industry
company that has used to purchase energy from the grid, installs new energy generating
installations).

For existing installations from industry sector that expand electric power generating
capacity, by installing new effective co-generation power plant after 1 January 2003.

For existing installations from energy sector that expand electric power generating
capacity, by installing new effective co-generation power plant after 1 January 2003 and
expansion of capacities leads to increased electricity generation above the amounts set
forth in the Table 3
For one year allowances from reserve will be granted to new market entrants by applying
benchmarks to one installed power unit (MW; t of production per day and so on) (see Table 7).
Benchmarks of allowance quantities granted to one installed power unit for new effectively
operating cogeneration power plants will be estimated by such a way that the number of
allowances, which is at least equal to the number allocated to the operating cogeneration power
plants, would be allocated to one installation, in proportion to their capacity. (Thus, more
favourable conditions for the development of new effectively operating cogeneration enterprises
would be established and the opportunities to compete with existing power plants would be
ensured)
The quantity of allowances granted to newly introduced installations will be established taking
into consideration the emissions of the installations conforming to the features of the best
accessible technologies.
The installed capacity of the installation will be fixed in the allowance to emit Greenhouse gas
issued prior to the date of the installation and operation of new installations (except the
allocation of allowances to new entrants, who started the operation by 12/12/2004).
The allowance of the installation to be closed will be transferred to reserve intended for new
market entrants.
Allowance to emit Greenhouse gases is issued by Regional Environmental departments (RAAD)
as a constituent of Pollution Integrated Prevention and Control license. The contents of the
allowance to emit Greenhouse gases is laid down by order No D1-231 of Minister of
Environment of the Republic of Lithuania dated April 29, 2004 and approved in the schedule of
allowance issue and the trade emission procedure.
21
Allowances to newly introduced installations will be issued for current year from the reserve
intended for newly introduced installations and granted by February 28 of the same year, taking
into consideration the allowances to emit Greenhouse gases that were already issued.
It is forecasted that after the allocation of all allowances from the reserve intended for newly
introduced installations, the allowances for the instalments that came into operation later will
have to be purchased in the market.
It is forecasted that, provided that all allowances from the reserve intended for newly introduced
installations are not used, the remaining allowances will be annulled.
Table 7 Allocation of allowances to new market entrants:
Type of activity
Quantity of
allowances to be
allocated per one
unit of production
for one year
Measurement unit
Allowances issued to glass
manufacturers, burned ceramic
product factories, paper and
cellulose mills, oil processing
enterprises, cement and limestone,
steel and cast iron producers:
Glass production
Ceramics production
Production of paper and cellulose
Refining and distillation of mineral
oil products
Production of cement and lime
Steel and cast iron production
Type of activity
71
76
44
16
128
46
t of glassware per day
t of fibreglass per day
t of burned ceramic products per day
t of cellulose per day while producing
cellulose from wood or other fibred
material
t of paper or cellulose per day while
producing paper and cellulose
t of oil products per day
296
375
365
150
t of grey cement per day
t of white cement per day
t of lime per day
t of steel and cast iron per hour
Quantity of
allowances to be
allocated per one
unit of production
Measurement unit
Allowances issued to other
industrial enterprises that use fuel
to generate energy:
Electric power plants*,**
2500
New heat energy generating
installations***
600
t per one MW of installed electric power
generating capacity
t per one MW of installed heat energy
generating capacity
* Only for installations producing heat and energy and corresponding the requirements of the
effective co-generation power plant set forth in the Rules for purchase of electricity from the cogeneration power plants, approved on 30 June 2003 by the Minister of Economy Order No. 4262, paragraph 2.1 and 2.2).
22
** For expansion of electric power generating capacity by installing new effective co-generation
power plant in industry sector, allowances are allocated by total new installed electric power
generating capacity.
For expansion of electric power generating capacity by installing new effective co-generation
power plant in energy sector, allowances are allocated only if the expansion of capacities leads to
increased electricity generation above the amounts set forth in the Table 3. Quantities of
allowances to be allocated are calculated by formula:
ATL  N  2500 
Qn  Qp
,
Qi
where:
N– installed electric power generating capacity [kW],
Qn – the quantity of electric power generation in total set forth in the integrated pollution
prevention and control permission (TIPK), for the period that allowances are to be allocated
(electric power generation in previously installed installations is included)
Qp – the quantity of electric power planned to generate in total for the period that allowances are
to be allocated (Table 3)
Qi – the quantity of electric power generation in the new installation set forth in the integrated
pollution prevention and control permission (TIPK), for the period that allowances are to be
allocated
*** Allowances to the installations producing heat and electric power are allocated in the same
way as electric power plants.
5.3.
Other legal and political measures
1.1.1. Assessment of impact of EU directives and other pollution reduction measures
on the sector participating in the emission trading scheme
When determining the total quantity of allowances to be allocated many other EU directives
were also taken into account.
Since Lithuania’s national communications submitted to the Secretariat of the UN FCCC [1, 2]
did not contain assessment of impact of implemented measures to reduce greenhouse gas
emissions, our estimates provided below are based on assessments of energy saving potential set
forth in the Energy Efficiency Programme and the provisions of the National Energy Strategy
relating to the implementation of the EU directives. Table 8 gives the main climate change
mitigation policy factors laid down in the National Energy Strategy and the cumulative effect of
these factors on the reduction in greenhouse gas emissions [3]. The present Table reflects the
greenhouse gas emissions reduction potential in the areas which will be included in the EU
emission trading scheme.
Table 8 Overall reduction in greenhouse gas emissions after implementing measures laid down in the
National Energy Strategy, in Mt:
Year
Increase of energy efficiency
Increase of energy efficiency as a result of
implementation of the National Energy
Efficiency Programme
Increase of energy supply efficiency
The National Energy Strategy provides that
by 2020 the amount electricity produced by
thermal power stations account for 35% total
electric power
2000
2000
2002
-
2005
2010
2015
-1,13
-5,65
-11,30
-
-
-
2020
-0.482
23
Promotion of use of renewable energy sources
The National Energy Strategy requires
that by 2010 the amount of energy
2002
-1
-5
produced from renewable energy sources
account for 12% of all primary energy
structure
As part of the measures to implement
Directive 2001/77/EC on the promotion
of electricity produced from renewable
energy sources in the internal electricity
-0,37
-1,85
market, Lithuania has committed itself to
increase the share of electricity produced
from renewable energy sources to 7%
by 2010
Implementation of Directives relating to a reduction of emissions of pollutants into the
atmosphere
Directive 1999/32/EC relating to a
2004
reduction in the sulphur content of certain
liquid fuels
Directive 2001/80/EC on the limitation of
2008
emissions of certain pollutants into the air
from large combustion plants
Directive 2001/81/EC on national
2004
emission ceilings for certain atmospheric
pollutants
Impact of directives relating to the
reduction of pollutants emitted into the
+2,27
+7,0
atmosphere
on
greenhouse
gas
emissions
Reduction in greenhouse gas emissions
as a result of implementation of
-1,13
-4,8
-11,1
measures laid down in the National
Energy Strategy, comprising also EU
directives
Introduction of Directives 2001/80/EC on the limitation of emissions of certain pollutants into
the air from large combustion plants 2001/81/EC on national emission ceilings for certain
atmospheric pollutants and 1999/32/EC relating to a reduction in the sulphur content of certain
liquid fuels will cause an increase in CO2 emissions. On 01 January 2004 a limit value of sulphur
content of certain liquid fuels came into effect in Lithuania. For all liquid fuel fired installations
the maximum level of SO2 emissions may not exceed 1700 mg/Nm3. This means that those
enterprises which at present use only 2,5%S fuel oil, will have to switch to different combination
of fuel or install fume desulphurisation equipment. If 2.5%S fuel oil is burned together with
natural gas, wood or other fuel with low sulphur content, then the SO2 emission limit value (1700
mg/Nm3) is not exceeded, provided that the share of 2,5%S fuel oil is not greater than 40%. On
01 January 2008 new requirements applicable to fuel fired large combustion installations will
come into effect: liquid fuel fired installations with thermal capacity up to 300 MW, the limit
value of SO2 emissions may not exceed 1700 mg/Nm3, for installations whose thermal capacity
is 300-500 MW, the limit value of SO2 emissions decreases in direct proportion down to 400
mg/Nm3 and for installations with a capacity of 500 MW the value of SO2 emissions may not be
greater than 400 mg/Nm3. This means that liquid fuel with sulphur content will be allowed to use
only in installations equipped with fume desulphurisation equipment and 1%S fuel oil will be
allowed to use only in the installations whose capacity does not exceed 300 MW. Starting from
01 January 2004 all installations that currently use only fuel oil have to switch to a new
combination of fuel, this applies to small fuel fired installations and 11 large combustion plants.
24
The maximum share of sulphur containing fuel oil (2,5%S) will be 40% of the total quantity of
fuel used [6, 7].
Starting from 1 January 2008 limitations will come into effect with respect to the largest
Lithuanian electric power plants and they will be seven times more stringent that the current
limitations of sulphur dioxide content of fuel oil. Lithuania was granted a grace period with
respect to Vilnius, Kaunas and Mažeikiai thermal power stations, therefore these requirements
will not apply before the end of 2015. Transitional period will enable the abovementioned
enterprises to better adjust to the new requirements. Therefore following 2010, after the closure
of the Ignalina NPP, the maximum level of sulphur containing fuel consumed may increase to
1400 thousand tonnes/year of major electric power plants equipped with desulphurisation
equipment will start using only cheaper high sulphur fuel. It is foreseen that the Lithuanian
Power Plant and, probably, Vilnius Thermal Power Station will start using orimulsion instead of
high sulphur fuel oil. As can be seen from prospective energy balances, the use of orimulsion
will increase more than ten times as compared to the 2005 level (from 15.7 ktne to 687.6 ktne).
This will result in a 2.27 Mt increase of CO2 emissions (671,9*41,861*80,7). The consumption
of orimulsion after the year 2010 will grow to 2122.1 ktoe, and CO2 emissions will increase to
7.1 Mt. (2103,6* 41,861*80,7kg/GJ). Therefore by 2005 CO2 emissions caused by the use of
orimulsion would increase by 2.27 Mt and in the period from 2010 – by 7 Mt. The reason for
such an increase in the consumption of orimulsion would be the implementation of three
abovementioned EC directives relating to the limitation of pollutants emitted into the
atmosphere; the requirements laid down in these directives would encourage construction of
desulphurisation equipment in all major thermal power stations of Lithuania and thereby enable
them to use large quantities of orimulsion which at the present is not possible because of the SO2
emissions limit value.
1.1.2. Assessment of impact of EU directives and greenhouse gas emissions reduction
measures on other sectors not covered by the emission trading scheme
The European Commission recommends that while drafting the National Allocation Plan the EU
requirements that will have a significant effect on a reduction or increase in greenhouse gas
emissions (more than 10%) be taken into consideration (EC, COM(2003) 830, 2004). In cases
when on the basis of the existing testing data it is not possible to determine quantitative impact
of a directive or a measure on the change in greenhouse gas emissions, a qualitative assessment
of this change shall be made.
The following is a list of directives whose implementation will not have a significant impact on
the change in greenhouse gas emissions, but whose implementation measures are worth
mentioning:






Directive 2003/96/EB of the European Parliament and of the Council restructuring the
Community framework for the taxation of energy products and electricity;
Directive 96/61/EB of the European Parliament and of the Council concerning integrated
pollution prevention and control (TIPK);
Directive 91/676/EEB of the European Parliament and of the Council concerning the
protection of waters against pollution caused by nitrates from agricultural sources (Nitrates
Directive);
Directive 1999/31/EB of the European Parliament and of the Council on the compulsory
collection and incineration of methane gas emissions generated in large waste landfills
(Waste Landfills Directive);
Directive 2001/91/EB of the European Parliament and of the Council on energy performance
of buildings;
Directive 2003/30/EB of the European Parliament and of the Council on the promotion of the
use of biofuels or other renewable fuels for transport
Directive 2003/96/EC restructuring the Community framework for the taxation of energy
products and electricity established minimum energy product rates. Implementation of this
25
directive may cause a rise in energy product prices and reduction in their use and in the level of
sulphur dioxide emissions.
Implementation of the requirements of Directive 96/61/EB of the European Parliament and of the
Council concerning integrated pollution prevention and control (IPPC Directive) is related to the
introduction of the best available production methods and most advanced technologies.
Therefore it is quite possible that the greenhouse gas emissions from industrial and energy sector
installations holding IPPC permits and participating in the emission trading scheme will
decrease.
Directive 91/676/EEB of the European Parliament and of the Council, besides many other things,
requires that manure is stored in a proper manner and the amount ant time of application of
organic fertilisers be properly regulated. This reduces evaporation of nitrogen suboxide from
organic and liquid mineral fertilisers. In September of 2003 the Ministry of Environment and
Ministry of Agriculture issued an order on reporting to the European Commission (29 September
2003, No 475/3d-397). As part of implementation measures, on 26 August 2003 the Government
of the Republic of Lithuania approved by its Resolution No 1079 the State Program for
Reduction of Water Pollution from Agricultural Sources (Official Gazette 2003, No 83-3792).
Reports shall be submitted every four years and shall detail issues related to the implementation
of the action programme that also covers measures to reduce greenhouse gas emissions.
Directive 1999/31/EB of the European Parliament and of the Council on landfill of waste
requires a 50% reduction in bio-degradable waste by 2005 and a further reduction of 25% by
2010 (as compared to the level of biodegradable waste in 1993). Methane in all new and existing
waste landfills and shall be collected and used or burnt. After implementing these requirements
the methane gas emissions in waste landfills will be reduced. As can be seen from one
environmental impact assessment report conducted in one of the regional landfills of Lithuania
(AAPC, 2003), following the implementation of the requirements of this directive (collection,
incineration and use of landfill gas) the reduction in methane emissions in Lithuania would be
achieved and by 2012 about 153 million m³ of landfill gases will be contained1 Methane
accounts for one half of total quantity of landfill gasses. In order to calculate the reduction in
methane gas emissions in tons, the amount of landfill gas shall be multiplied by methane density
(0,71 kg/m3) and the resulting figure shall be divided by two. This way it is possible to estimate
the amount of contained methane in tonnes which then can be converted into CO2 potential.
Therefore the containment of 54.3 thousand tonnes of methane would make it possible to achieve
a 1.14 Mt reduction in the CO2 potential by 2012. It would be possible to reduce the CO2
potential by 0,475 Mt by the year 2005, or achieve a 0.1 Mt yearly reduction.
The implementation of Directive 2001/91/EC of the European Parliament and Council on the
energy performance of buildings and implementation of EC directives 79/530/EC, 79/531/EC,
96/57/EC, and 2000/55/EC promoting more efficient use of energy in households is subject to
the implementation of 19 September 2001 Resolution No 1121 “On the Resume of the revised
and updated National Energy Efficiency Programme and core directions for implementation of
the Programme in 2001 through 2005” of the Government of the Republic of Lithuania. The
abovementioned Resolution requires that statistical accounting documents for energy use in
buildings, transport and agriculture be prepared and revised, which would help determine the
efficiency of energy use. Energy audits and monitoring activities are planned in case of building
renovation or modernization. Building insulation, energy facilities renovation programs are
foreseen. Building energy passports indicating energy performance characteristics will be
prepared.
1
Setting up of Kaunas regional urban waste landfill. The calculations made presented in the report on the
environmental impact assessment analysis show that the amount of gases (mostly methane and sulphur dioxide)
generated in the landfill by 2012 will amount to 27 million m3. Since this quantity of greenhouse gas emissions
results from waste generated by households in the Kaunas County (653,731 residents.), the total quantity of gases
generated in the waste landfills of Lithuania (3692.6 thousand residents as per 2001 data), presuming the urban
waste system structure is similar in all parts of Lithuania, would amount to approximately 153 million m3 .
26
The amount of energy used for housing heating in Lithuania is 1.8 times higher than in other EU
countries in similar climatic conditions. One of the objectives laid down in the Lithuanian
Housing Strategy (21 January 2004 Resolution No 60 of the Government of the Republic of
Lithuania) is to ensure efficient use of energy sources. In order to achieve this goal, heating
systems of multi-family buildings will be modernized, roof structures will be renovated and
insulated, windows and external doors will be replaced or renovated, and joint defects of largeblock construction buildings will be remedied. These measures will make it possible to achieve
an up to 30% reduction in relative heat and fuel costs calculated per one unit of area by 2020.
This also reduces sulphur dioxide emissions generated due to household activities.
Under the National Energy Efficiency Programme (Ministry of Economy, 2001) the potential for
saving energy sources and energy in the households of Lithuania (in residential buildings and in
commercial and servicing sector buildings) amounts to 0.52 TWh or 45% of all final energy
consumption in these sectors. Prospective energy balances show that the average consumption of
energy in these sectors in the period 2005 to 2007 will amount to 4.2 TWh. This means that the
energy saving potential for the period 2005 to 2007 could be as high as 1.64 TWh. Greenhouse
emissions from households and service sectors for the period 2005 to 2007 calculated under
energy balances will amount to on average 1.16 Mt of CO2 potential per year. Therefore one
TWh of final energy consumed in households and service sectors would result in 0.278 Mt of
CO2 emissions potential. This data provides basis for calculating the reduction potential in
greenhouse gas emissions within one year after implementing measures to increase energy
efficiency in household and service sector – 0.456 Mt CO2 potential per year.
Directive 2003/30/EB of the European Parliament and of the Council on the promotion of the use
of biofuels or other renewable fuels for will be implemented in accordance with the requirements
of the Law of Biofuel AND OTHER SUBORDINATE LEGISLATION. ARTICLE 4 of the Law
on Biofuel regulates the production of biofuel from locally available raw materials and
established the procedure for promotion of such biofuel. Tax laws and other legal acts provide
for concessions and guarantees applicable to biofuel producers, users and investors who invest
into the production of biofuel.
The National Energy Efficiency Programme states that the energy efficiency potential in the
transport sector is on average 1.7 TWh or 0.15 Mtne per year. Prospective energy balances show
that the average greenhouse emissions in the period 2005 to 2007 will amount to 3.9 Mt CO2
saving potential per year. The forecast for the final energy consumption in the transport sector
indicates that the amount of final energy consumed in 2005 through 2007 will amount to
approximately 15 TWh per year. This means that 0.26 Mt of CO2 potential emissions falls to one
TWh. These data make it possible to calculate the reduction in greenhouse gas emissions within
one year as a result of introduction of energy efficiency measures in transport sector – 0.442 Mt.
Since EU Directive 2003/30/EC on biofuels that has been transposed into the Law on Biofuel
provides for an increase in the share of biofuels consumed in the transport sector to 2% in 2005
and to 5.75% by the end of 2010, it is possible to calculate, on the basis of forecast of the
consumption of fuel in the transport sector based on prospective energy balances, the reduction
in CO2 emissions achieved through the implementation of the above-mentioned Directive: 0.3
TWh*0.26 Mt/TWh=0.078 Mt. – 2005. By 2010, when energy consumption will grow to 17
TWh, this would make it possible to achieve a 0.255 Mt reduction in CO2 emissions per year.
The Order “On the Approval of the Interinstitutional Allocation of Functions Relating to the
Joint Implementation Mechanism for the Implementation of the UN FCCC Kyoto Protocol,
Strategic Directions for the Implementation of this Mechanism and Recommendations for the
Realization of Joint Implementation Projects” of the Ministry of Environment and Ministry of
Economy of the Republic of Lithuania that is currently being prepared specifies the criteria and
priority areas for joint implementation projects. It is foreseen, that joint implementation projects
will be implemented which would reduce greenhouse gas emissions in the sectors of economy
not covered by the emission trading scheme. The following types of joint implementation
projects are possible:
27






introduction of technologies based on production of electricity and heat (cogeneration)
from renewable energy sources (wind and geothermal energy, solar energy, biomass,
hydro-power, etc.);
replacing one type of fuel (in energy or heating sector) with renewable and/or less
pollutant fuels;
increasing energy efficiency, including energy saving methods;
production of energy from methane that is generated in agriculture and other sectors of
economy and from gas obtained during oil production;
planting of forests and other activities related to the development and protection of
greenhouse absorbents and accumulators; and,
reducing pollutant emissions from transport
vehicles in major cities of Lithuania.
At present the Ministry of Environment is considering introduction of taxation on carbon dioxide
emissions in sectors not covered by the emission trading scheme. This would create economic
incentives for reduction of greenhouse gas emissions in the sectors not covered by the emission
trading scheme and most importantly in the transport sector.
The reduction of Greenhouse gas emission after implementation of pollution reduction means in
allowances trading sector.
The forecasted quantitative reduction of Greenhouse gas emission quantities in other sectors is
evaluated in Table 9.
Table 9 Reduction in greenhouse gas emissions after implementing pollution reduction measures, Mt
Greenhouse gas
emissions after
implementation of
pollution reduction
measures in all sectors
Decrease of greenhouse
gas emissions, a result of
implementation of
pollution reduction
measures in sectors,
covered by the emission
trading scheme
Decrease in greenhouse
gas emissions, a result of
implementation of
pollution reduction
measures in other sectors
Decrease in greenhouse
gas emissions, a result of
implementation of
pollution reduction
measures in all sectors
Greenhouse gas
emissions, if pollution
reduction measures are
not implemented
Greenhouse gas
emissions in sectors, not
covered by the emission
trading scheme
2001
2005
2006
2007
2008
2009
2010
2011
2012
20,6
26,2
26,3
26,2
26,9
27,8
31,5
31,9
32,0
-
-1,1
-1,0
-1,0
-1,0
-1,0
-1,0
-2,2
-2,2
-
-1,0
-1,0
-1,0
-1,0
-1,0
-1,17
-1,17
-1,17
-2,1
-2,0
-2,0
-2,0
-2,0
-2,17
-3,37
-3,37
20,6
28,3
28,3
28,1
28,9
29,8
33,67
35,27
35,37
13,3
13,6
13,3
13,0
12,9
13,1
13,5
13,8
14,0
28
Greenhouse gas
emissions in sectors, not
covered by the emission
trading scheme, if
pollution reduction
measures are not
implemented
Greenhouse gas
emissions in sectors,
covered by the emission
trading scheme, if
pollution reduction
measures are
implemented
Greenhouse gas
emissions in sectors,
covered by the emission
trading scheme, if
pollution reduction
measures are not
implemented
13,3
14,6
14,3
14,0
13,9
14,1
14,67
14,97
15,17
6,2
12,6
13,1
13,2
14,1
14,8
18,0
18,1
18,0
62
13,7
14,0
14,2
15,0
15,7
19
20,3
20,2
29
6. PUBLIC CONSULTATIONS
The total quantity of allowances was calculated and these allowances were allocated to sectors
and installations by the authors of the National Allocation Plan, who worked closely with the
representatives of the operators of installations covered by the trading scheme. Data on the
quantities of emissions from installations were collected by way of questionnaires which were
compiled taking into consideration specific nature of energy companies, industrial enterprises
operating energy production installations and industrial enterprises that use production processes
during which carbon dioxide is generated. After gathering all the information on the installations
the authors of the National Allocation Plan conducted consultations with scientists to obtain the
most accurate data available.
The National Allocation Plan was presented to the general public. The objectives, principles and
process of the National Allocation Plan were outlined in an article entitled The allowances
trading scheme has been started in Lithuania which was published in the 4 March 2004 issue of
the newspaper Verslo Žinios.
On 16 March 2004 a workshop was organized at which the National Allocation Plan was
presented. All enterprises covered by the emissions trading scheme and all interested groups
(environmental nongovernmental organizations, public environment protection institutions,
scientific institutions) were invited to participate in the workshop. Besides, the representatives
from various associations, such as the Association of Local Authorities in Lithuania, the
Lithuanian Heat Supplier Association, and the Lithuanian Confederation of Industrialists were
also invited. The workshop was attended by 55 participants who represented various interested
groups. The participants were especially interested in learning more about the methodology of
the allocation plan and compliance with the requirements of the EU Directive and the Kyoto
Protocol. The authors of the plan provided explanations and answered all these questions. The
reports given at the workshop were put on the Lithuanian Environmental Investment Fund
website. After the workshop the authors of the National Allocation Plan answered people’s
questions by telephone and e-mail.
In the beginning of April of 2004 the draft National Allocation Plan was put on the website of
the Lithuanian Environmental Investment Fund www.laaif.lt and Ministry of Environment of
Lithuania www.am.lt and the readers were asked to share their comments. Comments were sent
by e-mail, snail mail, facsimile or conveyed by telephone. The authors of the plan reviewed the
comments and suggestions and, if need was, made necessary amendments to the National
Allocation Plan. The list of comments and explain how these comments were incorporated into
the revised text of the plan was prepared .
30
7. CRITERIA NOT LISTED IN ANNEX III TO THE DIRECTIVE
Other criteria are not applied.
31
8. ANNEX I – LIST OF INSTALLATIONS
All installations located at the same address and owned by the same operator (legal or natural
person) that emit CO2 gasses during operation and meet at least one of the following criteria are
considered a separate installation:

Fuel combustion installations whose nominal installed thermal capacity is greater than 20
MW (according to fuel consumption), with the exception of dangerous waste or
household waste combustion equipment;

Oil processing equipment is installed;

Coke ovens are installed;

Installations for extraction of metal ore by burning and melting sulphide ore;

Installations for primary and additional melting of cast iron and steel are installed,
including continuous casting, with capacity of over 2.5 tonnes per hour.

Clinker cement production rotary kilns with capacity of over 500 tonnes per day are
installed, or installations for producing lime in rotary kilns with production capacity of
over 50 tonnes per day are installed;

Glass or fibreglass production installations are installed, if melting capacity of such
installations is greater than 20 tonnes per day;

Installations for the production of heated clay products, roof tiles, brick, refractory brick,
tile or porcelain products are installed, if production capacities are greater than 75 tonnes
of finished products per day or the volume of kiln is greater than 4 cubic meters and more
than 300 kg of products can be placed in each cubic meter of the kiln;

Installations for producing cellulose from wood or other material are installed;

Installations for producing paper or board are installed, if their production capacity is
greater than 20 tonnes per day.
Allowances are allocated free of charge in the following proportions:
For the year 2005 40%
For the year 2006 30%
For the year 2007 30%
Table 10 Installations:
Cement and lime production sector:
ID
Installation
operator
Name of
installation
Cem1
AB "Akmenės
cementas"
Boiler Plant, cement
production kilns
Cem2
AB "Naujasis
kalcitas"
Lime production
kilns
Address
J. Dalinkevičiaus Str
2, LT-85118, Naujoji
Akmenė
Installation:
Statybininkų Str 20,
Venta
Office:
J.Dalinkevičiaus Str
32, N.Akmenė 5464
Quantity of
allowances to be
allocated for the
period 2005-2007 in
tonnes
3,326,315
443,954
32
Glass, brick and ceramic product production sector:
ID
Installation
operator
Name of
installation
SK1
UAB "Švenčionėlių
keramika"
SK2
AB "Tauragės
keramika”
Tunnel furnaces for
making ceramic
products, Tunnel
driers
Kiln for burning
ceramic products
SK3
UAB "Jašiūnų
keramika"
Kiln for burning
ceramic products
SK4
UAB "Rokų
keramika"
SK5
AB "Palemono
keramika"
SK6
AB "Dvarčionių
keramika"
Kiln for burning
ceramic products
Boiler, Kiln for
burning ceramic
products
Kiln for burning
ceramic products
SK7
AB "Jiesia"
Furnaces
SK8
AB "Alytaus
keramika"
Kiln for burning
ceramic products
SK9
AB "Ekranas"
Glass furnaces
SK10
SK11
AB Stiklo fabrikas
"Aleksotas"
AB "Panevėžio
stiklas"
Glass furnaces
Glass furnaces
Address
LT-18206 Village of
Augustavas,
Švenčionėliai Ward,
Švenčioniai District
Gaurės Str 27, LT72343 Tauragė
Popierinės Str 3,
Jašiūnai, LT-4094
Šalčininkai District
J. Borutos 23, LT3010 Kaunas
Pamario Str 1, LT3023 Kaunas
Keramikų Str 2, LT10233 Vilnius
Chemijos Str 29, LT51333 Kaunas
Village of Geištarai,
LT-64236 Miroslavas
Ward, Alytus District
Elektronikos 1, LT35116 Panevėžys
J. Bakanausko Str 23,
LT-53018 Kaunas
Pramonės 10, LT35100 Panevėžys
Quantity of
allowances to be
allocated for the
period 2005-2007 in
tonnes
24,643
20,314
977
28,735
20,381
37,383
857
4,937
157,800
72,124
201,738
Oil processing sector:
ID
Nafta1
Installation
operator
AB "Mažeikių
nafta"
Name of
installation
Oil processing
factory
Address
Quantity of
allowances to be
allocated for the
period 2005-2007 in
tonnes
Juodeikiai, LT-89467
Mažeikiai District
6,622,887
Industrial enterprises which use fuel to generate energy for their own needs and paper
production sector:
ID
Installation
operator
Name of
installation
Address
Quantity of
allowances to be
allocated for the
period 2005-2007 in
tonnes
PR1
AB "Klaipėdos
kartonas"
Boiler Plant
Nemuno Str 2, LT91199 Klaipėda
79,450
PR2
AB "Grigiškės"
Boiler Plant
Vilniaus Str 10, LT27101 Vilnius,
Grigiškės
165,873
2
PR3
AB "Simega"
Boiler Plant No 1
Technikos Str2,
Kupiškis
77,050
PR4
AB "Achema"*2
Boiler Plant and
ammonia room startup boiler
Jonalaukio km.,
Rukla Ward, LT55550 Jonava District
606,455
PR5
Vilnos AB "Drobė"
Steam Boiler Plant
Jonavos Str 60, LT44192 Kaunas
20,667
PR6
AB "Danisco sugar
Kėdainiai"
Boiler Plant, bagasse
drier
Pramonės 6, LT57242 Kėdainiai
106,360
PR7
AB "Gliukozė"
Boiler Plant
V. Bielskio 13, LT –
5419 Šiauliai
17,136
PR8
AB "Anykščių
vynas"
Boiler Plant
Dariaus ir Girėno Str
8, LT-29131
Anykščiai
31,010
PR9
AB "Lifosa"
Boiler Plant
Juodkiškio Str 50,
LT-57502 Kėdainiai
57,793
PR10
AB "Linas"
Boiler Plant
PR11
AB "Danisco sugar
Panevėžys"
Boiler Plant
PR12
AB "Danisco sugar
Panevėžys",
Kuršėnai branch
Boiler Plant
PR13
AB "Klaipėdos
nafta"
Boiler Plant
PR14
AB "Naujasis
kalcitas"
Limestone driers
PR15
Ž.ū.b. "Dembavos
šiltnamiai"
Boiler Plant
PR16
UAB "ARVI
cukrus"
Boiler Plant
P. Armino 65, LT68127 Marijampolė
74,792
PR17
AB "Alita"
Boiler Plant, pomace
drier
Miškininkų Str 17,
62200 Alytus
19,478
PR18
AB "Krekenavos
agrofirma"
Boiler Plant
Village of
Mantviloniai , LT57346 Kėdainiai
District
28,385
S.Kerbedžio Str
Nr.23, LT-35114
Panevėžys
Įmonių Str22, LT35101 Panevėžys
(main establishment)
Ventos Str 79,
Kuršėnai, LT -81168
Šiauliai District
Burių 19, A.d. 81
LT-91003
Klaipėda-C
Installation: Village
of Mentys, Akmenė
District; Office:
J.Dalinkevičiaus 32,
N.Akmenė 5464
Akacijų Str. 3 Village
of Dembava LT5337
Panevėžys District
44,310
82,666
88,948
86,876
21,552
18,303
It is not planed to allocate greenhouse emission allowances to fuel combustion in technological process in
chemistry industry. In chemistry industry allowances are allocated only to installations for energy generation –
boilers and power plants.
PR19
AB "Klaipėdos
mediena"
Boiler Plant
Liepų Str 68, LT92100 Klaipėda
68,005
PR20
UAB "Aliejus"
Boiler Plant
Panerių 62/1, Vilnius
10,142
PR21
AB “Matuizų
plytinė“
Boiler plant
Matuizos, LT-65071
Varėnos raj.
25,199
Address
Quantity of
allowances to be
allocated for the
period 2005-2007 in
tonnes
Heat and electric power supply sector
ID
Installation
operator
Name of
installation
EN1
AB "Jonavos
šilumos tinklai"
Jonava District
Boiler Plant
Klaipėdos Str 8,
Jonava
103,125
EN2
AB "Jonavos
šilumos tinklai"
Girelė District
Boiler Plant
Ukmergės Str 20,
Jonava
28,763
EN3
UAB "Mažeikių
šilumos tinklai"
Mažeikiai Boiler
Plant
Montuotojų Str 7,
Mažeikiai
177,428
EN4
UAB "Raseinių
šilumos tinklai"
Raseiniai Boiler
Plant No 4
Žemaičių Str 9,
Raseiniai
36,351
EN5
UAB "Ukmergės
energija"
Ukmergė Boiler
Plant Nr.1
Šviesos Str 17,
Ukmergė
44,225
EN6
UAB "Ukmergės
energija"
Klaipėda Boiler
Plant No.7
Nemuno Str 2,
Klaipėda
100,500
EN7
UAB "Molėtų
šiluma"
Molėtai local
neighbourhood
boiler plant
Mechanizatorių Str 7,
Molėtai
26,831
EN8
UAB "Šilutės
šilumos tinklai"
Šilutė District Boiler
Plant
Klaipėdos Str 6a,
Šilutė
69,369
EN9
UAB "Vilniaus
energija"
Vilnius Power Plant
No-2 (E-2)
Savanorių pr. 117/2
1,151,378
EN10
UAB "Vilniaus
energija"
Vilnius Power Plant
No-3 (E-3)
Jočionių Str 13
3,564,760
EN11
UAB "Vilniaus
energija"
Pramonės Str 95
73,200
EN12
UAB "Vilniaus
energija"
Paplaujos Str 9
22,500
EN13
UAB "Vilniaus
energija"
Ateities Str 10
157,500
District Boiler Plant
No.2 (District Boiler
Plant-2)
District Boiler Plant
No.6 (District Boiler
Plant-6)
District Boiler Plant
No.8 (District Boiler
Plant-8)
EN14
UAB "Širvintų
šiluma"
Širvintos Boiler
Plant No. 3
Žibalų Str 16,
Širvintos
25,034
EN15
AB "Šiaulių
energija"
Šiauliai Southern
Boiler Plant
Pramonės Str 10,
Šiauliai
411,750
EN16
AB "Šiaulių
energija"
Rekyva Boiler Plant
Energetikų Str. 20,
Šiauliai
7,673
Tilvytis Boiler Plant
Tilvyčio Str. 15,
Kuršėnai
14,325
Daugėliai Boiler
Plant
Pramonės Str. 18c,
Kuršėnai
9,375
Gargždai Boiler
Plant No. 4
J. Janonio Str. 38,
Gargždai
22,283
EN17
EN18
EN19
AB "Šiaulių
energija", Tilvyčio
Boiler Plant
AB "Šiaulių
energija", Daugėlių
Boiler Plant
AB "Klaipėdos
energija", Klaipėdos
rajono šilumos
tinklai
EN20
AB "Klaipėdos
energija"
Klaipėda Power
Plant
Danės Str. 8,
Klaipėda
312.943
EN21
UAB "Radviliškio
šiluma"
Radviliškis City
Boiler Plant
Žironų Str. 3,
Radviliškis
51,000
EN22
UAB "Utenos
šilumos tinklai"
Utena District Boiler
Plant
Pramonės Str. 11,
Utena
135,000
EN23
Tauragė District.
Municipality
Tauragė-Beržė
District Boiler Plant
Paberžių Str.16,
Tauragė
80,492
EN24
Property Fund of
Republic of
Lithuania
Mažeikiai Power
Plant
Juodeikiai
Mažeikiai District
2,651,020
EN25
Šalčininkų šilumos
tinklai
Šalčininkai Central
Boiler Plant
Pramonės Str 2a,
Šalčininkai
26,595
EN26
Pravieniškių 2-ieji
pataisos namai
Boiler plant
Pravieniškės-2,
Kaišiadorys District.
18,485
EN27
UAB "Varėnos
šiluma"
Varėna Boiler Plant
J.Basanavičiaus Str
56, Varėna
60,585
EN28
AB "Panevėžio
energija"
Panevėžys District
Boiler Plant No 2
Senamiesčio Str 113,
Panevėžys
197,625
EN29
AB "Panevėžio
energija"
Rokiškis District
Boiler Plant
Pramonės Str 7,
Rokiškis
100,975
EN30
AB "Panevėžio
energija"
Panevėžys District
Boiler Plant No 1
Pušaloto Str 191,
Panevėžys
239,509
EN31
AB "Panevėžio
energija"
Pasvalio District
Boiler Plant
Mūšos Str 16,
Pasvalys
29,050
EN32
AB "Panevėžio
energija"
Zarasai Boiler Plant
No 4
Taikos Str, Zarasai
34,225
EN33
UAB "Geoterma"
Klaipėda
Geothermal Plant
Lypkių Str 53,
Klaipėda
174,975
EN34
AB "Kauno
energija"
Petrašiūnai Power
Plant
Jėgainės Str 12,
Kaunas
215,406
EN35
AB "Kauno
energija"
Pergalės Boiler Plant
Karo ligoninės Str
31, Kaunas
15,750
EN36
AB "Kauno
energija"
Šilko Boiler Plant
Varnių Str 48,
Kaunas
16,500
EN37
AB "Kauno
energija"
Noreikiškės District
Boiler Plant
Noreikiškės, Kauno r.
25,620
EN38
AB "Kauno
energija"
Garliavos District
Boiler Plant
St.Lozoraičio Str 17a,
Garliava, Kaunas
34,066
EN39
AB "Kauno
energija"
Jurbarko District
Boiler Plant
EN40
UAB "Ignalinos
šilumos tinklai"
Ignalina Central
Boiler Plant No 2
Vasario 16-sios Str
31, Ignalina
28,648
EN41
SP UAB "Plungės
šilumos tinklai"
Plungė Boiler Plant
No 1
V. Mačernio Str 19,
LT-90142 Plungė
6,254
EN42
SPUAB "Birštono
šiluma"
Birštonas District
Boiler Plant
B.Sruogos Str 23,
Birštonas
16,500
Pramonės Boiler
Plant
Pramonės Str 7,
Druskininkai
96,209
Rotušės Boiler Plant
Rotušės Str 20a,
Biržai
27,081
Vilkaviškis Boiler
Plant
Birutės Str 8a,
Vilkaviškis
30,086
Luokė Boiler Plant
Lygumų Str 69,
Telšiai
55,626
Mackevičiaus Boiler
Plant
Mackevičiaus Str 10,
Kelmė
22,816
Palanga Boiler Plant
Klaipėdos pl.63,
Palanga
68,179
Kazlų Rūda Boiler
Plant
Gedimino Str 1,
Marijampolė
15,909
EN43
EN44
EN45
EN46
EN47
EN48
EN49
UAB "Litesko"
filialas
"Druskininkų
šiluma"
UAB "Litesko"
filialas Biržų
šiluma"
UAB "Litesko"
filialas "Vilkaviškio
šiluma"
UAB "Litesko"
filialas "Telšių
šiluma"
UAB "Litesko"
filialas "Kelmės
šiluma"
UAB "Litesko"
filialas "Palangos
šiluma"
UAB "Litesko"
filialas
"Marijampolės
šiluma"
39,871
EN50
EN51
EN52
EN53
EN54
UAB "Litesko"
filialas
"Marijampolės
šiluma"
UAB "Litesko"
filialas "Alytaus
energija"
AB “Lietuvos
elektrinė”
UAB "Kauno
termofikacijos
elektrinė"
SP UAB
"Kaišiadorių
šiluma"
Marijampolė District
Boiler Plant
Gamyklų Str 8,
Marijampolė
139,214
Alytus District
Boiler Plant
Alytus
311,951
Lithuanian Power
Plant
Elektrinės Str. 21,LT4061, Elektrėnai
7,394,563
Kaunas Power Plant
Taikos pr. 147,
51142, Kaunas
2,607,750
Kaišiadorys Boiler
Plant
Basanavičiaus 42,
Kaišiadorys
30,000
EN55
SP UAB "Kretingos
šilumos tinklai"
Kretinga Boiler
Plant Nr. 2
Melioratorių Str10,
Kretinga
25,188
EN56
AB “Klaipėdos
energija”
Klaipėda District
Boiler Plant
Šilutės pl. 26,
Klaipėda
264,750
EN57
AB “Klaipėdos
energija”
Lypkiai District
Boiler Plant
Lypkių str. 57,
Klaipėda
51,000
EN58
AB “Klaipėdos
energija”
Gargždai District
Boiler Plant No 2
P. Cvirkos 15,
Gargždai
13,263
Referenced sources
1. “Lithuanian Energy 2002”, Lithuanian Energy Institute, 2003.
2. Procedure for promotion of production and purchase of electric power produced from
renewable energy sources and by-product energy, approved by Resolution No 1474 of the
Government of the Republic of Lithuania of 158 December 2001
3. Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories (1997),
IPCC/OECD/IEA, Paris.
4. COMMISSION DECISION of 29/01/2004 establishing guidelines for the monitoring and
reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European
Parliament and of the Council
5. Ministry of Environmental Protection. Lithuania’s first national communication under the
Framework Convention on Climate Change, 1996;
6. Ministry of Environment. Lithuania’s second national communication under the
Framework Convention on Cvlimate Change, 2002;
7. Ministry of Economy. National Energy Strategy, 2002.
8. National Energy Efficiency Programme, Ministry of Economy, Vilnius 200;
9. COMMISSION DECISION of 29/01/2004 establishing guidelines for the monitoring and
reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European
Parliament and of the Council
10. Environmental requirements to the energy sector. Report, COWI, LEI, EPC, 2002.
11. Proposal for the implementation of European council directives 88/609/EEC on the
limitations of emissions of certain pollutants into air from large combustion plants and
1999/32?EC on reduction in the sulphur content of heavy fuel oil to 1%. LEI report.
12. Centre for Environmental Policy, Construction of Kaunas Regional Urban Waste
Landfill, Report on Assessment of Environmental Impact from Projected Activities,
Volume I, Vilnius, 2003.
13. European
Commission,
COM(2003)
830,
2004),
Brussels,
7.1.2004
COMMUNICATION FROM THE COMMISSION on guidance to assist Member States
in the implementation of the criteria listed in Annex III to Directive 2003/87/EC
establishing a scheme for greenhouse gas emission allowance trading within the
Community and amending Council Directive 96/61/EC, and on the circumstances under
which force majeure is demonstrated
14. Law on Biofuel No VIII-1875 of the Republic of Lithuania of 18 July 2000
15. Statistics Lithuania, Statistical Yearbook of Lithuania 2001, Vilnius, 2001.
16. Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on
the promotion of the use of biofuels or other renewable fuels for transport
(European Parliament|Directive|2003/30|32003L0030|2003 03 08|Galioja|Official Journal
L'2003 Nr.123-42).
17. Draft Order „On the Approval of the Interinstitutional Allocation of Functions Relating
to the Joint Implementation Mechanism for the Implementation of the UN FCCC Kyoto
Protocol, Strategic Directions for the Implementation of this Mechanism and
Recommendations for the Realization of Joint Implementation Projects of the Ministry of
Environment and Ministry of Economy of the Republic of Lithuania of 4 April 2004
18. Centre for Environmental Policy, Construction of Kaunas Regional Urban Waste
Landfill, Report on Assessment of Environmental Impact from Projected Activities,
Volume I, Vilnius, 2003.
19. European
Commission,
COM(2003)
830,
2004),
Brussels,
7.1.2004
COMMUNICATION FROM THE COMMISSION on guidance to assist Member States
in the implementation of the criteria listed in Annex III to Directive 2003/87/EC
establishing a scheme for greenhouse gas emission allowance trading within the
Community and amending Council Directive 96/61/EC, and on the circumstances under
which force majeure is demonstrated
20. National Energy Efficiency Programme, Ministry of Economy of the Republic of
Lithuania, Vilnius 2001;
21. Law on Biofuel No VIII-1875 of the Republic of Lithuania of 18 July 2000
22. Statistics Lithuania, Statistical Yearbook of Lithuania 2001, Vilnius, 2001.
23. Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on
the promotion of the use of biofuels or other renewable fuels for transport
(European Parliament|Direktyva|2003/30|32003L0030|2003 03 08|Galioja|Official
Journal L'2003 Nr.123-42)
24.
Resolution No 60 “On the approval of the Lithuanian Housing Strategy” of 21 January
2004.
25. Economic analysis of electricity sector in Lithuania“ LEI, AB „Lietuvos energija“,
„Elkraft“, COWI. 2002
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