The European Investment Bank (EIB) has signed a loan agreement worth €110 million (£101m) with a Lithuanian energy company in support of smart metering systems and IT solutions.

Ignitis Group will use the financing to install smart meters and implement IT solutions for data collection and management with energy distribution operator ESO.

Under the first stage of installation, ESO is planning to replace around 1.2 million units of smart meters in Lithuania by the end of 2023, starting with domestic users who consume the biggest share of energy.

The replacement of existing meters included in the operation corresponds to almost 66% of all installed meters currently installed in the country.

The new metering system, which will enable remote readings, near real-time consumption information and communication with consumer devices, is expected to lead to energy savings for consumers and increased energy market efficiency.

EIB Vice President Thomas Östros said: “This operation gives an important signal about the energy market in the Baltics, namely that investments are shifting from a focus on security of supply towards energy efficiency. This is good news and very important in terms of our collective commitment to the Paris Agreement. Climate change won’t stop if we don’t act and in that context every initiative to limit our energy consumption is a big help.”

Ignitis Group has already signed contracts with the EIB for a €190 million loan to finance the construction works of the Vilnius combined heat and power (CHP) plant and a PLN258 million (£52m) loan for the Pomerania Wind Farm being developed in Poland.