LEO LT

Last updated
LEO LT AB
Private
Industry electricity
Fatedissolved
Founded2007
Founder Republic of Lithuania, NDX Energija
Defunct2009
Headquarters
Vilnius
,
Lithuania
Subsidiaries Lietuvos Energija, RST (Rytų skirstomieji tinklai – Eastern Power Grid Company), VST (Vakarų skirstomieji tinklai – Western Power Grid Company)

LEO LT AB or Lithuanian Electricity Organization (Lithuanian : Lietuvos elektros organizacija) was a national energy holding company in Lithuania. The company owned shares of Lithuania's three major electric power production and distribution companies. It was established in early 2008 to raise funds for the construction of the planned Visaginas Nuclear Power Plant after close down of Ignalina Plant, and Lithuania–Sweden and Lithuania–Poland power connections. [1] The decision to liquidate the company, mired in controversies and attacked by critics, was reached by the shareholder of LEO LT on 4 September 2009. [2]

Lithuanian language Language spoken in Lithuania

Lithuanian is an Eastern Baltic language spoken in the Baltic region. It is the language of Lithuanians and the official language of Lithuania as well as one of the official languages of the European Union. There are about 2.8 million native Lithuanian speakers in Lithuania and about 200 000 abroad.

A holding company is a company that owns other companies' outstanding stock. A holding company usually does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies.

Visaginas Nuclear Power Plant

Visaginas Nuclear Power Plant is a planned nuclear power plant project in Lithuania. It was proposed to be built at the site of the closed Ignalina Nuclear Power Plant, which was shut down on 31 December 2009 in accordance with Lithuania's accession agreement to the European Union. The two reactors of the Ignalina plant are currently undergoing a decommissioning process.

Contents

Formation

On 28 June 2007, Lithuania's parliament adopted a law on building a new nuclear power plant. The law also stipulated creation of a "national investor" to gain investments for the new nuclear power plant. [3] The talks between the government, under Prime Minister Gediminas Kirkilas, and privately owned NDX Energija, part of VP Market group, on the establishment of this "national investor" started on 30 November 2007. An agreement was reached on 20 December 2007, [4] the Seimas (Lithuanian Parliament) approved it on 1 February 2008, and President Valdas Adamkus signed the law on 12 February 2008. [5] [6] LEO LT started its official operations on 20 May 2008 with capital of 5 billion litas (approx. US$2.3 billion).

Gediminas Kirkilas Lithuanian politician

Gediminas Kirkilas is a Lithuanian politician who was Prime Minister of Lithuania from 2006 to 2008. He was confirmed by the Seimas on 4 July 2006 after Zigmantas Balčytis, the provisional Prime Minister, failed to gather the required support from the parliament. He stepped down on 27 November 2008 after the 2008 parliamentary elections, and gave way to Andrius Kubilius to start his term as the prime minister.

Seimas unicameral parliament of Lithuania

The Seimas of the Republic of Lithuania, or simply the Seimas, is the unicameral parliament of Lithuania. The Seimas constitutes the legislative branch of government in Lithuania, enacting laws and amendments to the Constitution, passing the budget, confirming the Prime Minister and the Government and controlling their activities.

Valdas Adamkus President of Lithuania

Valdas Adamkus is a Lithuanian politician. He was the President of Lithuania from 1998 to 2003 and again from 2004 to 2009.

According to the initial agreement, the shares of LEO LT were owned by the Republic of Lithuania (61.7%) and by private NDX Energija (38.3%). A small number of the shares (0.3–0.4%) were to be traded on the Vilnius Stock Exchange. [4] The Lithuanian government transferred to LEO LT its holdings in Lietuvos Energija (96.4%) and RST (Rytų skirstomieji tinklai – Eastern Power Grid Company, 71.34%), while NDX Energija transferred 97.1% of shares in VST (Vakarų skirstomieji tinklai – Western Power Grid Company). The government planned to offer to buy a 20.3% stake in RST owned by E.ON. [4] The Kruonis Pumped Storage Plant and Kaunas Hydroelectric Plant were excluded from LEO LT and remained at the disposal of the state. [1]

Lietuvos Energija UAB is a state-controlled energy holding company located in Vilnius, Lithuania. Its subsidiaries involved in power and heat generation and distribution, natural gas trade and distribution, and supporting services. Its shares are owned the Ministry of Finance of the Republic of Lithuania. Chairman of the Board and CEO of the company is Darius Maikštėnas.

E.ON holding company

E.ON SE is a German electric utility company based in Essen, North Rhine-Westphalia, Germany. It runs one of the world's largest investor-owned electric utility service providers. The name comes from the Greek word aeon which means age. The company is a component of the Euro Stoxx 50 stock market index, DAX stock index and a member of the Dow Jones Global Titans 50 index.

Kruonis Pumped Storage Plant dam in Kruonis

Kruonis Pumped Storage Plant is located near Kruonis, Lithuania, 34 km (21 mi) east of Kaunas. Its main purpose is to provide grid energy storage. It operates in conjunction with the Kaunas Hydroelectric Power Plant. During periods of low demand, usually at night, Kruonis PSHP raises water from the lower Kaunas reservoir to the upper one using cheap surplus energy. The station is designed to have an installed capacity of 1,600 MW but only four 225 MW generators are currently operational. With a fully filled upper reservoir the plant can generate 900 MW for about 12 hours.

Dissolution

The formation of LEO LT was controversial and attracted much criticism. The main complains included that the new company would again monopolize the market which was divided only in 2002, that NDX Energija was selected as a partner without a public competition, and that the deal possibly violated the Constitution of Lithuania and regulations of the European Union on monopoly in energy. [2] In its decision of 2 March 2009, the Constitutional Court of Lithuania ruled that while there were minor violations in the deal between the government and NDX Energija they were not substantial to merit voiding the agreement. [7] The company was followed by continuous allegations of corruption. One commentator labeled the debacle as the "fraud of the century". [8]

Constitution of Lithuania

The Constitution of the Republic of Lithuania defines the legal foundation for all laws passed in the Republic of Lithuania. It was approved in a referendum on 25 October 1992.

European Union Economic and political union of European states

The European Union (EU) is a political and economic union of 28 member states that are located primarily in Europe. Its members have a combined area of 4,475,757 km2 (1,728,099 sq mi) and an estimated total population of about 513 million. The EU has developed an internal single market through a standardised system of laws that apply in all member states in those matters, and only those matters, where members have agreed to act as one. EU policies aim to ensure the free movement of people, goods, services and capital within the internal market, enact legislation in justice and home affairs and maintain common policies on trade, agriculture, fisheries and regional development. For travel within the Schengen Area, passport controls have been abolished. A monetary union was established in 1999 and came into full force in 2002 and is composed of 19 EU member states which use the euro currency.

Constitutional Court of Lithuania supreme court

The Constitutional Court of the Republic of Lithuania is a special court established by the Constitution of the Republic of Lithuania of 1992; it began the activities after the adoption of the Law on Constitutional Court of the Republic of Lithuania on February 3, 1993. Since its inception, the Court has been located in the city of Vilnius, Gediminas Avenue.

Parliamentary elections at the end of 2008, brought a new government, under Prime Minister Andrius Kubilius, that did not support LEO LT. On 4 September 2009, the Seimas voted to liquidate LEO LT. The agreement with NDX Energija on division of assets was signed on 4 December 2009. [9] The government would retain shares in all three companies (Lietuvos energija, RST and VST) and pay a compensation of 680 million litas to NDX – about the same amount NDX paid for its share of VST in 2003 and 2004. [9] Thus the deal is interpreted as favorable to the government. [8] According to reports in the media, NDX made about 500 million litas from its investment in VST. [9] [10] However, analysts also point out lost opportunity costs: VST was valued at 2–3 billion litas in 2007. [10]

Andrius Kubilius Lithuanian politician

Andrius Kubilius is a Lithuanian politician and a Member of the European Parliament (MEP). He served as Prime Minister of Lithuania from 1999 to 2000 and again from 2008 to 2012. He was leader of the conservative political party Homeland Union – Lithuanian Christian Democrats.

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Foreign relations of Lithuania

Lithuania is a country on the south-eastern shore of the Baltic Sea, a member of the United Nations Organisation, the Organisation for Security and Cooperation in Europe, the European Union, the North Atlantic Treaty Organisation, the World Trade Organisation. Currently, Lithuania maintains diplomatic relations with 182 states Lithuania became a member of the United Nations on 18 September 1991, and is a signatory to a number of its organizations and other international agreements. It is also a member of the Organization for Security and Cooperation in Europe, NATO and its adjunct North Atlantic Coordinating Council, the Council of Europe, and the European Union. Lithuania gained membership in the World Trade Organization on 31 May 2001.

Ignalina Nuclear Power Plant nuclear power plant

The Ignalina Nuclear Power Plant is a decommissioned two-unit RBMK-1500 nuclear power station in Visaginas Municipality, Lithuania. It was named after the nearby city of Ignalina. Due to the plant's similarities to the infamous Chernobyl Nuclear Power Plant in both reactor design and lack of a robust containment building, Lithuania agreed to close the plant as part of its accession agreement to the European Union. Unit 1 was closed in December 2004; Unit 2, which counted for 25% of Lithuania's electricity generating capacity and supplied about 70% of Lithuania's electrical demand, was closed on December 31, 2009. Proposals have been made to construct a new nuclear power plant at the same site. However, plans have not materialised since then, and the country is one of the most active supporters of renewable energy.

NordBalt HVDC interconnector between Sweden and Lithuania

NordBalt is a submarine power cable between Klaipėda in Lithuania and Nybro in Sweden. The purpose of the cable is to facilitate the trading of power between the Baltic and Nordic electricity markets, and to increase the supply and energy security in both markets.

Eesti Energia Estonian energy company

Eesti Energia AS is a private limited energy company in Estonia with its headquarters in Tallinn. It is the world's biggest oil shale to energy company. The company was founded in 1939. As of 2014, it operates in Estonia, Latvia, Lithuania, Finland, Jordan and Utah, United States. In Estonia the company operates under the name Eesti Energia, while using the brand name Enefit for international operations. The main raw material for energy production – oil shale – is extracted from mines located in Eastern-Estonia and owned by the company. The group of Eesti Energia has three main operation areas: electricity generation, shale oil production, and sale and distribution electricity. Its shares are owned by the Government of Estonia.

Vilniaus prekyba Lithuanian holding company

Vilniaus prekyba is one of the largest Lithuanian groups of private companies. It is a holding company through which shareholders manage numerous subsidiaries. It traces its roots to 1992. Private limited liability company Vilniaus prekyba is a private holding company, headquartered in Vilnius, Lithuania, that oversees, controls and manages the group of subsidiary companies operating retail and pharmacy chains, real estate development and shopping centre lease and management companies in the Baltic states, Poland, Bulgaria and Ukraine.

Government of Lithuania

Government of the Republic of Lithuania is the cabinet of Lithuania, exercising executive power in the country. Among other responsibilities, it executes laws and resolutions of the parliament, the Seimas, and the decrees of the President, manages state property and, together with the President, executes the foreign policy of the country. The Government also has the right of legislative initiative, puts together the state budget and presents it to the Seimas for approval.

Elektrėnai Power Plant Power plant in Elektrėnai, Lithuania

The Elektrėnai Power Plant or Lithuania Power Plant is an 1,800-MW electrical generating station near Elektrėnai, Lithuania, about 50 kilometres (31 mi) west of Lithuania's capital, Vilnius. It is operated by Lietuvos Elektrinė, a subsidiary of Lietuvos Energija.

The Liberals Movement of the Republic of Lithuania, abbreviated to LRLS, is a conservative-liberal political party in Lithuania, the fourth most successful political party in 2016 parliamentary election.

Lithuania–Sweden relations Diplomatic relations between the Republic of Lithuania and the Kingdom of Sweden

Lithuania–Sweden relations are the foreign relations between Sweden and Lithuania. Sweden has an embassy in Vilnius. Lithuania has an embassy in Stockholm.

Lithuania does not have any operational nuclear power reactor. It operated two RBMK reactors at Ignalina nuclear power plant which were shut down in 2004 and 2009.

Lithuania is a net energy importer. Primary energy use in Lithuania was 98 TWh, or 29 TWh per million people in 2009.

Renewable energy in Lithuania

In 2016 Renewable energy in Lithuania constituted 27.9% of the country's overall electricity generation. Previously, the Lithuanian government aimed to generate 23% of total power from renewable resources by 2020, a goal was achieved in 2014 (23.9).

Events in the year 2012 in Lithuania.

Sixth Seimas of Lithuania Seimas 1992–1996

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The Tenth Seimas of Lithuania was a parliament (Seimas) elected in Lithuania. Elections took place on 12 October 2008, with the run-off on 26 October. The Seimas commenced its work on 17 November 2008 and served a four-year term, with the last session on 14 November 2012.

Kirkilas Cabinet

Kirkilas Cabinet was the 14th cabinet of Lithuania since 1990. It consisted of the Prime Minister and 13 government ministers.

References

  1. 1 2 "Government Approves Establishment of Lithuanian Electricity Organisation LEO LT AB". Government of the Republic of Lithuania. 2007-12-20. Archived from the original on 2008-03-05. Retrieved 2008-02-25.
  2. 1 2 Stancikas, Dalius (2009-09-07). "Didžioji piliečių pergalė, arba Kieno yra valstybės pinigai" (in Lithuanian). Bernardinai.lt.
  3. ↑ Nerijus Adomaitis (2007-06-28). "Lithuania adopts law on new nuclear power plant". Reuters . Retrieved 2008-02-25.
  4. 1 2 3 Nerijus Adomaitis (2007-12-20). "Lithuania agrees merged energy firm for nuclear plant". Reuters . Retrieved 2008-02-25.
  5. ↑ Nerijus Adomaitis, Patrick Lannin (2008-02-01). "Lithuania vote gives boost to nuclear plant plan". Reuters . Retrieved 2008-02-25.
  6. ↑ "Fitch release on Central European Power Sector". Reuters. 2008-02-14. Retrieved 2008-02-25.
  7. ↑ "Konstitucinis Teismas: LEO LT įsteigimas pažeidė Konstituciją, bet bendrovės naikinti nereikės" (in Lithuanian).
  8. 1 2 Girnius, Kęstutis (2009-12-07). "Pasakiška "šimtmečio aferos" pabaiga" (in Lithuanian). Bernardinai.lt.
  9. 1 2 3 Širvinskas, Marijus (2010-01-08). ""Leo LT" dalybos – su iškapotomis akimis ir aukso kapšais" (in Lithuanian). Alfa.lt.
  10. 1 2 ""NDX energija" prarado kelis milijardus litų" (in Lithuanian). Lietuvos rytas. 2009-12-07.
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