The European Commission has granted its approval to a new renewables state support scheme in Lithuania that will come into force with an overall budget of €385 million ($431.5 million) beginning May 1, 2019. It will be open to all renewable installations, including solar, wind and hydropower.
Under this scheme, Lithuania will support renewable energy installations selected in a competitive bidding process with a premium irrespective of size or the technology used. The premium will not be higher than the difference between electricity market price or reference price in the country and the average production costs or maximum price of the most cost-efficient renewable energy technology, which in this case is onshore wind power.
Lithuania's national energy regulator will fix both reference price and maximum price for each auction, according to the commission.
The Eastern European nation wants to achieve a 38% share of renewable energy in the country's gross final energy consumption by 2025. The €385 million scheme will remain in effect till July 1, 2025 or till the 38% target is achieved.
"The scheme will contribute to Lithuania's transition to low carbon and environmentally sustainable energy supply, in line with the EU environmental objectives and our state aid rules," said Margrethe Vestager, Commissioner for Competition at the European Commission.
In January 2019, Lithuania secured the European Commission's approval for schemes related to supporting production of electricity from renewable energy sources and energy intensive users (see EU Approves Lithuania's RE Support Scheme).
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