Lithuania Proposes RE Auctions Till 2022

• Lithuania's Ministry of Energy has submitted a proposal with the government to approve its plan to hold three renewable energy auctions between 2020-2022
• It targets to procure 700 GWh of clean power from each of the three proposed auction rounds
• This development comes soon after VERT launched the European country's first technology neutral auction on September 2, 2019 with solar being one of the participating technologies

The Government of Lithuania is looking at holding renewable energy auctions to further the development of these technologies. The Ministry of Energy led by Žygimantas Vaičiūnas has submitted a plan to the government to approve a schedule targeting 3 renewable energy auctions, one for each year from 2020 to 2022.

Target capacity for each auction will be 0.7 TWh or 700 GWh of clean power annually. To enable a seamless integration of renewable energy, the proposed plan of the Energy Ministry recommends information on reserved and existing free grid capacity to be displayed by the transmission system operator in cooperation with the distribution system operator which will help plan for the reconstruction and development of electricity networks.

"Lithuania has set ambitious targets for the development of renewable energy and a clear plan for achieving them. It is our ambition to have as much clarity and transparency as possible for those investing in green energy in Lithuania and to maximize the number of bidders and competition," said Vaičiūnas. "The approved auction schedule will allow investors to evaluate their options and prepare properly for all auctions."

This announcement follows the launch of a first technology neutral auction on September 2, 2019 by the National Energy Regulatory Council (VERT). The auction, open for solar, wind, biogas, biomass, aims at securing 300 GWh of clean power. Successful bidders will be those who quote the lowest price premium; the upper bidding cap was €48.93 ($54) per MWh.

Interested parties can submit their documents between November 11, 2019 till November 25, 2019. Details available on VERT's website.

Under the country's National Energy Strategy, by 2025 Lithuania aims to have renewable energy plants generating up to 5 TWh of clean power, accounting for a 38% share in the energy mix. By 2030, it aims to increase this level to at least 45%, amounting to a minimum of 7 TWh.

After securing approval from the European Commission for its renewable state support scheme, Lithuania had announced it will launch a renewable energy auction on September 2, 2019 (see Lithuania To Hold First RE Auction On Sept 2, 2019).