Lithuania's Kruonis pumped storage hydroelectric power plant (Kruonis PSHP) has secured a financing agreement worth €105 million with the European Investment Bank (EIB), Ignitus Gambya has announced.

The funds will be directed towards the construction of the 5th unit at Kruonis PSHP, boasting a capacity of 110MW. This investment, provided over a period of up to 16 years, aims to enhance the plant's infrastructure, increase electricity production, and foster the adoption of sustainable energy solutions for the future.

"We are delighted to sign the agreement with the European Investment Bank, which opens the door to new opportunities by expanding Kruonis PSHP infrastructure and implementing sustainable energy solutions for the future,” said Jonas Rimavicius, Group CFO and Member of the Management Board. “The necessary investments will also increase electricity production and facilitate the development of green generation."

Upon completion of the 5th unit by the end of 2026, the capacity of Kruonis PSHP will increase to 1010MW, solidifying its position as one of Europe's largest energy storage facilities. The construction responsibilities lie with a consortium comprising Voith Hydro GmbH and Co. KG from St. Pölten, Austria, and Heidenheim, Germany.

The maximum capacity of the unit under construction will be 110MW and it will have a wider range in generator mode, starting from 0MW, and in pump mode it will be able to operate from 59MW.

Currently, Kruonis PSHP operates four units, each with a maximum capacity of 225MW. While these units provide valuable balancing services, their ability to meet the evolving demands of the energy landscape, particularly in frequency-control-related services, is constrained by their limited flexibility.

Kruonis PSHP, operated by Ignitis Gamyba, plays a vital role in Lithuania's energy ecosystem. With the ability to supply electricity continuously to the entire country for 12 hours at 900MW, it serves as a crucial asset in supporting renewable energy production. Additionally, the plant provides essential services for maintaining grid stability, including frequency restoration reserve and voltage control services.