Renewable energy news: European Commission approves support for production of electricity from renewable energy sources and for electro-intensive users in Lithuania

Aid to the production of electricity from renewable energy sources

In 2012, Lithuania set up a scheme to support producers of electricity from renewable energy sources (wind, solar, hydro, biomass, and biogas). The scheme will run until 2029, and the overall budget until the end of the support is expected to amount to €1,242 million.
On 8th of January 2019, the Commission approved aid granted under this scheme from 2012 to 2015. During this period, beneficiaries were selected through tender procedures and are then granted support in the form of a feed-in-premium for a period of 12 years.

Aid to energy-intensive users

The Lithuanian support scheme for producers of electricity from renewable energy sources is financed via a levy paid by the final electricity consumers.

From 1 January 2019, Lithuania intends to grant reductions on this levy to energy-intensive industrial users, such as companies active in the manufacture of fertilisers. The beneficiaries will obtain compensation for 85 % of the levy paid the previous year if they demonstrate an electro-intensity of at least 20 %.

The Commission found that the levy reductions will only be granted to energy-intensive companies exposed to international trade and concluded that the Lithuanian measure is in line with EU State aid rules. The measure will promote EU energy and climate goals and ensure the global competitiveness of energy-intensive users and industries.

NJORD Lithuania office has participated in advising various players on renewable energy matters and is looking forward to further cooperation with the renewable energy sector.