Lithuania Energy efficiency report
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1 Lithuania Energy efficiency report Objectives: o 4 TWh of end-user energy savings by 216 o 1.5%/year of energy savings by 22 o 35% share of cogeneration in electricity production by 22 Overview - (%/year) Primary intensity (EU=)¹ % ++ CO 2 intensity (EU=) % + CO 2 emissions per capita (in tco /cap) % -- Power generation Efficiency of thermal power plants (in %) % ++ Rate of electricity T&D losses (in %) % ++ CO 2 emissions per kwh generated (in gco /kwh) % -- Industry Energy intensity (EU=) % + Share of industrial CHP in industrial consumption (in %) % ++ Unit consumption of steel (in toe/t) Among best countries + Better than the EU average 1 - Below the EU average 1 --Among countries with the lowest performances Latest update: March The European Union, as the best performing region, is used as the benchmark.
2 1. Overview 1.1. Policies: 4 TWh of energy savings by 216 A National Energy Efficiency Action Plan (NEEAP) was adopted in July and revised in December. The second NEEAP, adopted in 211, sets a final energy consumption savings target of nearly 4 TWh (ie 341 ktoe) between and 216, 19 percent of which is to be achieved in the energy sector, 14 percent in industry and in the household sector, 12 percent in transport, percent in services and 31 percent through cross-sectoral measures. Those cross-sectoral measures include building regulations, voluntary agreements with energy companies on energy efficiency (individual meters in households and industry), tax rebates and information campaigns. In May 211 Lithuania adopted a new Energy Strategy with the target of achieving annual savings of 1.5 percent of the final energy consumption through 22 (1.3 percent/year between 22 and 23). The energy savings potential is estimated at 17 percent of final consumption in, ie about 74 ktoe by 22. The highest potential is found in buildings and transport: 4 percent of energy savings should be achieved in buildings and 4 percent in the transport sector. The country also plans to adopt stricter construction norms. The Law on Energy () includes minimum-efficiency requirement for electrical appliances, boilers and heat generators Energy consumption trends: low consumption per capita compared with the EU Primary consumption per capita is 4 percent lower than the EU average, at about 2.1 toe/cap (). After a sharp decrease between and, total energy consumption grew by 3.3 percent/year until. In, the country was hit by the global economic crisis and energy consumption fell by around 9 percent. Figure 1: Energy consumption trends by sector 9 Other Industry Power generation Mtoe The share of the power sector in energy consumption was nearly null in (previously, 25 percent, on average) as a result of the decommissioning of the last nuclear power plant in December. Consequently, electricity imports surged in. Industry accounted for about 2 percent of energy consumption in. Over the - period electricity consumption grew at a faster pace than energy consumption (nearly 5 percent/year versus 4 percent/year). Indeed, electricity consumption, which had remained relatively stable between and, grew by 4.6 percent/year until. In it fell by 7.5 percent, due to the sharp drop in electricity consumption in the industrial sector. Industry accounts for 36 percent of electricity consumption, down from 49 percent in, due to a dynamic electricity consumption in other sectors (+6.1 percent/year in the residential and services sectors between and ). At 2,8 kwh, electricity consumption per capita in Lithuania is about 5 percent lower than the EU average. Lithuania Country reports 2
3 Figure 2: Electricity consumption trends by sector 12 8 Industry Others TWh 1.3. Energy efficiency trends: significant efficiency gains since Between and energy intensity (total energy consumption per unit of GDP) fell by 4.5 percent/year. Limited efficiency gains were observed in the power sector (-1.2 percent/year) and in the industrial sector (industrial energy intensity decrease of.8 percent/year). Over the - period, the power generation sector was the largest contributor with an average decrease of 2.3 percent/year: the last nuclear power plant, which had a low efficiency rate, was decommissioned on 31 December, leading to a strong increase in the efficiency of the power sector in. Energy intensity in Lithuania, measured at purchasing power parity, remains 15 percent above the EU average (). Figure 3: Energy intensity trends % %/year -2% -3% -4% -5% -6% Other Industry Power generation 2. Power generation 2.1. Policies: voluntary agreements should lead to 74 GWh in end-customer savings Electricity distribution companies are required to reduce final energy consumption by end users by percent by 216 compared with the average consumption in -. Energy companies can sign voluntary agreements with the Energy Agency that include annual monitoring reports. These voluntary agreements are expected to save up to 74 GWh (64 ktoe) by 216. Energy distributors are also required to install energy meters. Lithuania Country reports 3
4 The goal under the National Energy Efficiency Program for -, which was to increase the share of cogeneration to 2 percent of electricity generation by, was achieved. According to the National Energy Strategy (), the share of CHP should be increased to 35 percent of the energy balance by 225. Further measures, including the taxation of fossil fuels for heat and electricity production, are under consideration. Lithuania also aims to improve generation efficiency. The Law on Energy () includes energy sector audits Efficiency of the power sector: low efficiency rate The average efficiency of power generation is low, although it is slowly increasing; in, it reached 35 percent compared with 33 percent in (decommissioning of the nuclear power plant). The efficiency rate of thermal power plants is also low (27 percent, compared with the EU average of 38 percent), although it is increasing following the commissioning of gas-fired facilities. Figure 4: Efficiency of power generation and thermal power plants Figure 5: Thermal electricity capacity, by technology % Total power generation Thermal power plants GW Steam Gas turbines Combined cycles 2. The rate of T&D losses is high (nearly 3 percentage points above the EU average), but is decreasing rapidly: whereas it stood at nearly 22 percent in, it dropped to 9.6 percent in. Figure 6: Electric T&D losses 25 2 % 15 5 Lithuania Country reports 4
5 3. Industry 3.1. Policies: promotion of CHP According to the second NEEAP (211), energy savings in the industrial sector should amount to 74 GWh (64 ktoe) by 216 (14 percent of the total savings). Three main measures are included to reach this target: voluntary agreements (37 GWh or 32 ktoe, implemented in 212), renewable installations (17 GWh, or 15 ktoe) and CHP generation (25 GWh, or 2 ktoe). The NEEAP also includes other measures, such as pollution reducing installations or energy audits in industry. The Ministry of Energy plans to establish voluntary agreements with industrial companies, based on energy consumption audits financed by the State, and to get companies to commit to the implementation of efficiency measures. These voluntary agreements would make it possible to save 37 GWh (32 ktoe) by 216. Energy consumption reporting and energy managers are mandatory in industry. Lithuania aims to develop small-scale cogeneration. In the framework of the -213 EU structural funds, energy audits can be subsidized and industrial companies can benefit from investment subsidies (up to 5 percent) for the implementation of CHP facilities. In tax exemptions were introduced for industrial firms that had installed CHP facilities rated less than 35 MW. The Lithuanian Energy Strategy by 22 (211) estimates the energy savings potential in industry at 15 ktoe by 22; those savings would be achieved through stricter energy management Energy consumption trends: noticeable decrease since Industrial energy consumption decreased by 5.1 percent/year between and, but grew by 4.5 percent/year until. In and it dropped at the significant rates of percent and 14 percent, respectively, as a result of the severe impact of the global economic crisis on Lithuania. In, industrial energy consumption picked up again (+9.1 percent), although it remains well below its pre-crisis level. Figure 7: Trends in industrial energy consumption Mtoe The structure of industrial energy consumption changed dramatically between and. Oil, which accounted for 34 percent of total consumption in, accounted for just 4 percent in. That decline was due to the rising share of natural gas, which is now the most commonly consumed fuel in industry (32 percent compared with 21 percent in ), followed by electricity (25 percent compared with 23 percent in ) and heat (21 percent compared with 18 percent in ). The shares of coal and biomass also increased, climbing from 2 percent each to percent and 8 percent, respectively. Lithuania Country reports 5
6 Energy-intensive industries account for nearly 6 percent of total industrial energy consumption, compared with 46 percent in. The chemical industry is the largest consumer with 37 percent of the total (15 percent in ), followed by the non-metallic minerals industry (16 percent compared with 27 percent in ). The share of the pulp and paper industry is smaller, and accounts for just 4 percent of industrial energy consumption. Lithuania does not have a steel industry Figure 8: Energy consumption of industry, by source Biomass Heat Electricity Gas Oil Coal/Lignite Figure 9: Energy consumption of industry, by branch Other Paper Non metallic minerals Chemical 3.3. Energy intensity trends: rapid improvements since Industrial energy intensity decreased at the rapid pace of 4.6 percent/year between and, in line with the energy intensity trends in the two largest industrial branches, ie chemicals and non-metallic minerals. The energy intensity of the chemical sector fell by 6.2 percent/year (between and ), while that of nonmetallic minerals sector dropped by 4.7 percent/year. The unit consumption of paper fell significantly, by 7.6 percent/year. Figure : Trends in the energy intensity of industrial branches %/year Total* Chemical ** Cement Paper *Including construction and mining ** - for chemical branch, Odyssee Lithuania Country reports 6
7 The share of industrial CHP in industrial electricity consumption started to increase in and currently stands at 17 percent (compared with 19 percent in the EU). Figure 11: Share of industrial CHP in industrial consumption 2 18% 16% 14% 12% 1 8% 6% 4% 2% The energy intensity of the manufacturing industry (ie excluding mining and construction) decreased by 5.4 percent/year between and. That reduction is linked to efficiency gains achieved in the industrial branches. However, structural changes played their part in limiting the decrease in industrial energy intensity: the share of non-energy intensive industries (such as food or textiles) in the gross value added decreased while that of the chemical sector increased. Figure 12: Trends in the energy intensity of manufacturing and structural effect 2% 1% %/year -1% -2% -3% -4% -5% - Real variation Change at constant structure Structural effect -6% -7%, Odyssee Lithuania Country reports 7
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