NIB to Support Vilnius’ District Heating Modernisation

The Nordic Investment Bank (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.

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.

“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.

“Modern district heating systems are a key pillar of the energy transition in cities,” said André Küüsvek, President and CEO of NIB.

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.

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.