Lithuanian renewable energy granted subsidies


The European Commission has approved plans to engage Lithuanian Renewables initiatives under EU regulations.

The EU approved the plans, which had already been confirmed under a order implemented in 2012, to provide investment for electricity produced from Lithuanian renewable energy generation; with an average budget of €1.242 billion provided until the year 2029. 

In assessing the plans, which have been financially sourced by a levy on consumers of power, the EU found that the scheme demonstrates an appropriate incentive to encourage uptake of renewable energy options; and that the aid provided was proportionate to its purpose and did not unduly distort competition.

A further Lithuanian renewable energy subsidy will aid in enabling energy-intensive industrial customers to invest in a minimised electricity levy as of this month (January).

Industrial consumers which require significant amounts of electricity, such as firms that manufacture fertilisers, will be able to obtain compensation of up to 85 per cent of the levy they have paid in the previous year if they can demonstrate an electro-intensity rate of 20 per cent or more.

The Commission found that in promoting Lithuanian renewable energy use and by extension supporting the EU’s energy and climate goals, the energy levy reduction scheme fell in line with state aid regulations. It found that the scheme enabled Lithuanian companies with a high rate of energy consumption to compete on an international level, without distorting their competitiveness either domestically or within the Single Market.

Margrethe Vestager, Commissioner in charge of competition policy, said of the Lithuanian renewable energy measures: “These two schemes will allow Lithuania to both continue supporting the development of renewable energy sources in the country and to preserve the competitiveness of electricity-intensive companies by reducing their contributions to the financing of this support.

This 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.”


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