Miesto Gijos AB

The uncommitted credit facility will support Miesto Gijos’ 2025–2030 investment programme, which includes major upgrades and expansion of the district heating network, as well as increased heat generation from renewable sources.

Vilnius’ heat network has a weighted average age of 33 years, and assets older than 30 years are considered to be in critical condition. The programme therefore includes the reconstruction of the pipeline network, improving the heat loss rate from 13% to 11% by 2030. It also foresees connecting new customers and districts, rolling out smart meters and remote data collection, and advancing heat substation services.

In heat production, the programme covers new capacity at the RK-8 regional boiler house (22 MW, 70 GWh/year), where a high-efficiency biomass boiler with a condensing economizer will be added. It also includes installing heat pumps with thermal storage (23 MW) at the Vilniaus Vandenys Wastewater Treatment Plant, recovering heat from municipal wastewater and using a thermal storage tank.

The total cost of the 2025–2030 investment programme is EUR 236 million.

Miesto Gijos (formerly Vilniaus Šilumos Tinklai), owned by the Vilnius City Municipality, is the largest provider of heat and hot water in Lithuania, serving over 236,000 households and businesses. The company also produces and balances electricity and provides hot water meter maintenance services.

The investments in the district heating network will enhance security of supply and increase network capacity in several areas. The new biomass boiler and heat pumps will expand the company’s production capabilities, while the thermal storage system will enable more efficient use of power market price fluctuations. During periods of low electricity prices, the company can charge the storage and use the accumulated heat during peak demand or in summer months.

Beyond improving operational flexibility, the electrification of heating systems will also strengthen the company’s ability to respond to power market volatility through timely demand adjustments.

Environmental

Renovation and expansion of the district heating network account for the largest share of the NIB-financed investment programme. Because most purchased heat is generated from biomass, the GHG intensity of the district heating system was already moderate in 2024 at 54 gCO₂/kWh, well below the EU Taxonomy threshold of 100 gCO₂/kWh.

The remaining portion of the programme includes investments in a new biomass boiler and heat pumps with thermal storage at the wastewater treatment plant. The company’s own heat generation is currently largely based on natural gas, which made up 50% of its output in 2025. The new biomass boiler will add 70 GWh of renewable heat to the system.

At the same time, a significant share of the heat supplied in Vilnius—more than two-thirds—is procured within the district heating system from biomass and waste-to-energy sources.

Impact indicators related to the loan:

Productivity:

• Capex EUR million

Environment:

• GHG intensity of the supplied heat to the network, gCO2/kWh

GHG intensity of the own produced heat, gCO2/kWh

The company is expected to obtain all necessary permits. No major environmental concerns were identified.