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. 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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. 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