The Kaunas Free Economic Zone (FEZ) is one of the fastest-growing business areas in Lithuania, attracting manufacturing, logistics, technology and service companies. Today, it is not just location and connectivity that matter to investors – well-developed engineering infrastructure, which helps ensure efficient operations and reduce long-term costs, is becoming increasingly important.
Alongside the existing primary engineering and road infrastructure, district heating infrastructure is being developed within the Kaunas FEZ, led by PLC “Kauno energija”. District heating enables businesses to switch to sustainable heating energy, moving away from individual heating systems powered by electricity or natural gas.
The district heating infrastructure in the Kaunas FEZ is already fully operational. More than 11 premises in the area are already using sustainable heating energy. PLC “Kauno energija” is actively expanding the district heating network to make the infrastructure accessible to new users.
Kaunas FEZ investors use district heating to heat their premises, provide hot water and power their ventilation systems. In 2025 alone, 2,746 MWh of heat energy was supplied to these premises – equivalent to the annual consumption of around 200 residential houses. Compared with the use of fossil fuels, this resulted in a reduction of approximately 769 tonnes of CO₂ emissions.
District heating allows companies to dispense with their own boiler rooms, maintenance requirements, periodic investments in equipment upgrades and the need to ensure compliance with safety requirements. An individual heat substation is installed in the building, enabling the efficient management of heating, hot water and ventilation systems in line with actual needs.
Opting for district heating reduces the burden of technical maintenance, while the heat supplier is responsible for the operation and development of the networks. This allows businesses to focus more on their core activities.
This year, €10.5 million has been allocated for the maintenance, modernisation and expansion of the district heating network infrastructure. Of this amount, €1.2 million is being invested in the expansion of the Kaunas FEZ heating networks. This investment will contribute to the further development of the area and help meet the growing needs of businesses.
In order to accelerate the reduction of greenhouse gas emissions and meet the EU’s climate targets, the new Emissions Trading System (ETS2) will come into force in the European Union from 2027.
These changes will result in an additional CO₂ surcharge on the price of fossil fuels. As natural gas falls within the scope of this scheme, the costs for businesses using gas for heating are expected to rise over time.
District heating helps mitigate the impact of these changes, as a large proportion of the heat is generated using biofuel and other renewable energy sources.
As an alternative to heating powered by gas or electricity, district heating enables Kaunas FEZ investors to plan their long-term energy costs more easily, reduce their carbon footprint and work towards their ESG targets.
PLC “Kauno energija” provides free advice to Kaunas FEZ investors on the technical requirements and options for connecting to the district heating network. Please contact us by email or phone: v.marcevice@kaunoenergija.lt, +370 695 81669.
Companies can assess their connection options both when planning new facilities and when modernising existing systems. The process begins with the issuance of technical specifications, followed by the preparation of design solutions, the installation of an individual heat substation and the conclusion of a heat supply contract.