The Danish state company Dansk Olie og Naturgas (now Ørsted) provided technical support, and Enterprise Geoterma served as the implementing agency.

After declaring independence from the Soviet Union, the Baltic States of Lithuania and Latvia were left with an energy sector that was heavily reliant on imported gas, oil, and nuclear fuel sources.

[3][4] In 1996, when the plant project was appraised, domestic energy sources supplied only 2% of Lithuania's heat demand.

Regional aquifers within the Devonian and Cambrian strata were analyzed along with the energy needs and geothermal potential of 12 urban areas: Klaipėda, Palanga, Šiauliai, Šilalė, Šilutė, Gargždai, Radviliškis, and Joniškis in Lithuania, and Liepāja, Riga, Jūrmala, and Jelgava in Latvia.

It increased to 120 MWth in 2010, then decreased gradually before the plant was shut down in 2017 due to an unfavourable economic environment and problems with injection of used geothermal water.