2022-07-13
An impressive electrification of Lithuania is on the way: the country's energy demand is set to grow by almost 50% in 10 years.
Litgrid, the Lithuanian transmission system operator, predicts in this year's 10-year plan that electricity consumption in the country will be 46% higher in 2031 than last year. As the demand for electricity grows, the company plans to launch dozens of construction and reconstruction projects each year, and Litgrid plans to spend more than €2 billion in total to ensure the reliability and security of the grid. As we prepare for an impressive electrification leap, the company is sending a message to the labour market and future graduates: the demand for energy professionals will grow from time to time.
According to Litgrid analysts, Lithuania's total electricity consumption will reach 18.7 TWh in 2031. In comparison, last year the total electricity consumption in Lithuania was 12.8 TWh.
This prediction is in great contrast to previous predictions - just last year “Litgrid” predicted that in a decade's time, total electricity consumption would rise to 15 TWh. The updated estimates take into account the European Green Deal and the recent sharp shift of Lithuanian citizens and businesses towards electricity-based solutions.
"Litgrid" estimates that the major growth in electricity demand over the next decade will be driven by the electrification of the transport sector, including the electrification of railway lines and the development of electric vehicles, the increase in the number of heat pumps, and the electrolysis industry, which is expected to raise the electricity consumption curve by as much as 13% in the year 2030.
The aim is to take control of the system
One of the main plans for the decade is to synchronise the Baltic electricity systems with the continental European grids.
In preparation for synchronisation, existing and new transmission lines and substations are being reconstructed, a project to install synchronous compensators is underway, IT systems for frequency and generation management are being implemented, and tests are planned. “Litgrid” has now completed 40% of the work needed for synchronisation.
The Lithuanian electricity transmission network operator has assessed its technical capabilities and system readiness, as well as the infrastructure in the other Baltic countries and the progress in upgrading it, and sees a practical opportunity to implement the synchronisation earlier, in the first quarter of 2024.
"The complex geopolitical situation makes it clear that there is a clear need to accelerate synchronisation, and all the necessary elements are in place: a political consensus and we, as an operator, are ready to ensure the technical capacity to connect earlier. By connecting to continental European grids, we will take control of a key parameter of the electricity system - frequency - into our own hands. By implementing preparatory projects, we are strengthening the Baltic electricity infrastructure, which opens up opportunities for the development of local power generation, especially green power generation," says Rokas Masiulis, the CEO of “Litgrid”.
New 330 kV line to improve power quality
In order to meet the growing energy needs, Litgrid will implement an important project for the country's electricity system as a whole - a new 330 kV transmission line Darbėnai-Mūša-Panevėžys.
The approximately 240 km long line will serve as an important link between western and eastern Lithuania and will make a significant contribution to the strategic priorities of synchronisation, greater integration of renewable energy sources, and increasing the reliability and security of the electricity transmission grid.
"The new transmission line will increase our ability to transmit energy, for example from the western part of the country, where wind power is expected to develop very rapidly, to the eastern part of the country, where most consumers are concentrated. Darbėnai-Mūša-Panevėžys line will also allow to strengthen the integration of the markets with the neighbouring countries and will improve the quality of electricity supply," explains R. Masiulis.
In addition to the construction of a new 330 kV line, the 10-year plan also includes other important works - Litgrid will reconstruct more than 500 km of 330 kV and more than 1,600 km of 110 kV overhead lines, as well as modernise more than 100 units of 330 kV and 110 kV transformer substations.
"We will launch dozens of new projects every year, with an average of 21 per year. Adding these to the work already underway at the time, we will manage between 51 and 100 construction or reconstruction projects each year," says Masiulis.
Getting closer to national RES objectives
As the demand for electricity grows, so does the number of businesses seeking to generate it from renewable energy sources (RES).
"Adding up all the wind farms already connected to the grid and the wind and solar power plants with reserved capacity, we have a total capacity of 4394 MW. This is more than half of the national target of 7,000 MW of RES in 2030. The new 330 kV overhead line Darbėnai-Mūša-Panevėžys line will make a strong contribution to the integration of RES, not only in the 1400 MW offshore wind farm project, but also throughout Lithuania. The grid reconstruction will contribute to the reliable operation of the grid and ensure the quality of electricity throughout the country," says R. Masiulis.
Investing €2 billion to improve infrastructure
The projects in the 10-year plan are estimated to require an investment of €2 billion. The largest amount - €898 million - will be spent on network restoration works, almost €794 million on strategic projects in the country, around €200 million on new construction works, €76 million on major repairs (replacement of overhead line supports, individual installations, emergency reserve) and around €24 million on IT and innovation projects.
R. Masiulis said that the planned investments send an important message to all Litgrid partners. "Over the next decade, our project volumes will increase at times. Therefore, we would like to draw the attention of companies providing design, electrical equipment manufacturing, equipment supply, construction and assembly works and other services - there will be work and orders, so it is worth preparing and strengthening our teams so that we can work together and smoothly prepare the electricity grid for the future changes in Lithuania's consumption and the integration of markets. We also want to draw the attention of young people who are considering a career path - the energy sector is undergoing a huge transformation and will need up to three times as many professionals. The fields of electrical engineering, renewable energy and power engineering are more in demand than ever, and the work ahead is exciting and dynamic, e.g. the construction of offshore wind farms and their integration into the electricity grid, their adaptation to the new needs of Lithuania, and the management of the electricity system in the context of working in a joint electricity network with Western partners," says Rokas Masiulis.
About Litgrid:
AB Litgrid, the operator of the Lithuanian electricity transmission system, maintains the stable operation of the country's electricity system, manages electricity flows and creates conditions for competition in the open electricity market. The company manages more than 7,000 km of overhead lines in Lithuania, more than 200 transformer substations and 17 inter-system lines with other countries, and carries out regular maintenance of these lines in order to ensure the proper transmission of electricity to all the country's inhabitants, institutions, and other organisations.
As of 22 December 2010, the shares of AB Litgrid were admitted to the Additional List of the NASDAQ OMX Vilnius Stock Exchange. 97.5 per cent of AB “Litgrid” shares are held by UAB EPSO-G, 100 per cent of whose shares are owned by the Ministry of Energy of the Republic of Lithuania.
