NIB to support Vilnius’ district heating modernisation

• NIB has signed a credit facility of up to EUR 118 million with Miesto Gijos AB to support Vilnius' 2025-2030 district heating investment programme.
• It includes major upgrades and expansion of the city's heating network, alongside the development of new renewable heat generation capacity.

The programme covers the reconstruction of pipeline networks, aiming to reduce heat losses from 13% to 11% by 2030. It also involves extending the network to new districts, connecting additional customers, rolling out smart meters and remote data collection, and introducing advanced heat substation services. In addition, renewable heat production will be expanded through a new biomass boiler and heat pumps that recover heat from wastewater, complemented by a thermal storage system to improve efficiency and flexibility.

"Vilnius is investing in a district heating system that is fit for the future. By modernising the network and increasing renewable heat production, we are creating long-term value for our customers and the city. These investments will strengthen energy security, improve the resilience of the heat supply system, and support Vilnius' transition towards a more sustainable energy future. NIB's support will help us accelerate this transformation and deliver reliable and efficient heating services for residents and businesses across the capital," said Gerimantas Bakanas, CEO of Miesto Gijos AB, highlighting the strategic importance of the investment programme for the future development of Vilnius' energy infrastructure.

"Modern district heating systems are a key pillar of the energy transition in cities," said André Küüsvek, President and CEO of NIB. "By supporting Vilnius in upgrading its infrastructure and integrating new technologies, this investment will contribute to a more flexible and future-ready heating system while supporting the city's long-term development."

Overall, these investments will enhance security of supply, increase network capacity, and improve operational flexibility. The thermal storage system will allow heat to be stored when electricity prices are low and used during periods of peak demand. Electrifying heat production will also strengthen the network's ability to respond to fluctuations in the power market.

Miesto Gijos AB (formerly Vilniaus Šilumos Tinklai), owned by the Vilnius City Municipality, is the largest district heating provider in Lithuania, supplying heat and hot water to more than 236,000 households and businesses. The company also produces and balances electricity and provides maintenance services for hot water meters.

NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody's.

For further information, please contact

Andrea Mac Donald-Thomé, Banker, +358 10 618 0228, [email protected]

Elīna Neimane, Senior Communications Officer, +358 10 618 0871, [email protected]