RENEWABLE ENERGY DEVELOPMENT IN LITHUANIA ACHIEVEMENTS AND DRAWBACKS

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1 RENEWABLE ENERGY DEVELOPMENT IN LITHUANIA ACHIEVEMENTS AND DRAWBACKS Ieva Kuodė Ministry of Energy of the Republic of Lithuania SOLINVEST

2 RES TARGETS BY % the share of energy from renewable sources in gross final consumption of energy in 2020 Directive 2009/28/EC on the promotion of the use of energy from renewable sources National Energy Independence Strategy of the Republic of Lithuania (2012) 10% the share of energy from renewable sources in all modes of transport 60 % the share of energy from renewable sources in district heating 20% the share of electricity generated from renewable sources

3 adopted Law on RES SHARE OF RENEWABLE ENERGY % Sectorial targets % Target by 2020 according 2009/28/EC RES 22,95 21,73 20,01 20,24 19,84 18,03 17,22 17, , , ,14 20 WIND 42,1% HYDRO 36,3% BIOMASS 15,8% SOLAR 3,1% BIOGAS 2,7% 33 Transport Electricity District Heating Factual (2013) Target (2020) Source: Statistics Lithuania

4 RES ELECTRICITY CAPACITY DEVELOPMENT: Biogas MW Solar MW Biomass MW Hydro MW Wind MW

5 SUPPORT MEASURES FOR RENEWABLE ENERGY PRESENT. Current support scheme: support for renewable electricity via PSO investment support (Special Climate Change Program, EU Funds) incentives under the Law on Energy from Renewable Sources FUTURE. Planned support scheme optimization: greater emphasis on investment support Feed in tariff Discount for grid connection Capacity reservation Transmission priority Balancing responsibility exemption revised PSO scheme implementation of State aid guidelines improved legal framework

6 DEVELOPMENT OF SOLAR POWER PLANTS statistics of solar power development: ,5 2,6 Number of installed solar power plants Number of integrated plants MW of total installed capacity MW of integrated power plants MW the largest power plant reduction of FIT for solar power by 46-62%: Integrated EUR ct/kwh Not integrated EUR ct/kwh

7 SOLAR BUBBLE (30 kw) By 2011 National regulator sets the FiT for 47 EUR ct/kwh By 2012 National regulator reduces the FiT for 42 EUR ct/kwh applications for the authorisation for development expected 450 MW in total 1,6 EUR ct/kwh increase of the electricity price

8 SUBSEQUENT CHANGES IN REGULATION: In order to avoid significant market distortion and defend public interest the Law on Energy from Renewable Sources has been changed in 2013: Amendments: - FiT and capacity quotas for installations exceeding 10 kw allocated by auction (30 kw previously). - Review of FiT levels for each technology on a quarterly basis -100% discount for electrical connection to the grid for installations up to 30 kw removed Results of COMPENSATION MECHANISM for retrospective amendments: -over 4000 applications for compensation -3,5 mln. EUR of compensation for eligible costs instead of 115 mln. EUR annually for 12 years.

9 CURRENT INCENTIVE FOR SOLAR ELECTRICITY NET METERING In March, 2015 the amendments of the Law on Energy from Renewable Sources has entered into the force allowing net-metering system application for small solar power plants. ` APPLICABLE for: residential <10kW budget and public entities <50 kw. QUOTA in total 10 MW. CURRENT SITUATION: Applications for approx. 550 kw of solar plants willing to use net metering system. National regulator has drafted the methodology for calculating the price of using the electricity grid.

10 THE WAY FORWARD Due to the solar bubble reputational damage to solar energy has been made; fresh start with the net metering scheme Further focus on small projects, residential consumers Looking for best practices and cooperation possibilities New targets for further development of RES shall be foreseen this year in the process of renewing the National Energy Independence Strategy

11 Thank you for your attention!

12 ENERGY MIX: 2009 vs ,7 25,1 21,4 31 Natural gas Crude oil and petroleum products Coal and coke Electricity (nuclear and other) Indigenous and renewable energy 29,7 28,7 3,3 8,6 35,7 1,8

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