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Lithuania is making significant strides in transforming its energy sector, with new regulations, strategic plans, and infrastructure developments aimed at boosting renewable energy and ensuring long-term energy independence. Below is an overview of the latest developments across the offshore wind, hydrogen, and biogas sectors, as well as insights into the country’s broader energy strategy.
Offshore Wind: Amendments to the Law on Energy from Renewable Sources
On 16 July 2024, Lithuania’s Parliament adopted important amendments to the Law on Energy from Renewable Sources, following the cancelled offshore wind auction in April 2024. The auction was cancelled because only one participant registered, while the law required a minimum of two for the process to proceed. As follows, several changes were introduced:
- Extended Registration Deadlines: The amendments now allow for the extension of participant registration deadlines, giving potential bidders more time to enter the auction.
- Continuation with Single Participant: The new rules permit the auction to continue even if only one participant registers.
- Indexed Transaction Price: The winning transaction price would be recalculated annually, by taking into account the annual inflation. The annual inflation rate would be applied to the difference between the transaction price and the market price, providing stability and reflecting market conditions over time.
- Minimum Development Fee: A minimum development fee of at least EUR 5 million is now required for projects where no state support is requested.
- Indexed Development Fee: Similar to the transaction price, the development fee, payable over five years, will also be indexed annually to maintain its value against inflation.
In late August 2024, the National Energy Regulatory Council confirmed plans to relaunch the offshore wind auction on 18 November 2024. These amendments are expected to create a more competitive and efficient auction process, driving the growth of Lithuania’s offshore wind capacity.
Hydrogen: Strategic Guidelines and Infrastructure Development
Lithuania is taking bold steps to position itself as a leader in hydrogen energy. The Ministry of Energy has adopted the country’s first hydrogen development guidelines for 2024-2050. These guidelines outline strategic directions for integrating hydrogen technologies across various sectors, including industry, transport, and energy production. Key initiatives include:
- Development of a Hydrogen Network: Lithuania’s natural gas transmission system operator, Amber Grid, is preparing a ten-year plan that includes creating a hydrogen network and adapting the existing gas transmission infrastructure for hydrogen use.
- Regional Collaboration: Amber Grid has also signed a memorandum of understanding with eight other natural gas transmission system operators. This partnership aims to coordinate the development of hydrogen infrastructure and promote a robust hydrogen market in the Baltic Sea region.
These initiatives mark a significant step forward in Lithuania’s transition to a hydrogen-based economy, which is crucial for achieving the country’s climate-neutral energy goals.
Biogas: Preparation for the “Independence” FSRU Takeover
Lithuania is gearing up for the takeover of the floating storage regasification unit (FSRU) “Independence”, a key asset in the country’s energy infrastructure. After undergoing planned maintenance and repairs, the “Independence” is scheduled to be officially transferred to Lithuanian ownership on 6 December 2024. This move is part of Lithuania’s broader strategy to ensure energy security and diversify its energy sources.
National Energy Independence Strategy
On 27 June 2024, Lithuania’s Parliament approved the National Energy Independence Strategy, aiming for 100% climate-neutral energy and a transition to an electricity-based economy by 2050. The plan includes developing 10 GW of onshore wind, 4.5 GW of offshore wind, and 9 GW of solar power, with estimated investments of EUR 49-79 billion.
