WEC Lithuania unites the Lithuanian Electricity Association; Lithuanian District Heating Association; Lithuanian Nuclear Energetics Association; Lithuanian Biomass Energy Association LITBIOMA; Lithuanian Energy Consultants Association; The National Association of the Electrical Engineering Business (NETA); Lithuanian Hydropower Association; and the Lithuanian Electricity Producers’ association. WEC Lithuania seeks to unite forces to effectively manage and rationally develop a national energy sector – to supply energy with the most favorable conditions, without compromising future generations to meet national needs in this area, and to represent the interests of the Lithuanian energy sector in the world.
Rymantas Juozaitis is currently Chairman of Lithuanian Member Committee of the World Energy Council. He has recently assumed the government role of Chairman of the Board of Visagino Atominė Elektrinė (Visaginas Nuclear Power Plant or VAE). He graduated from Kaunas Technical University and got a diploma in thermal power engineering. From 1976 to 1977 he worked as an engineer adjustor in the Board of Gas Facilities Adjustment. From 1977 to 1997 he held various engineering and management roles in a division of Kaunas Thermal Network Construction, including a director of a power plant branch. In 1997 he was appointed as a deputy director general of a newly established company, “Kauno Energija” SPAB. In 2000 he was offered a position of director general of “Kaunas Energija” AB. Since 2002 he has been working as general director of “Lietuvos Energija” AB. He was appointed CEO and Chairman of management board of LEO.LT in 2008. Rymantas Juozaitis was a Member of Steering Committee of Baltic Ring Study, member of the Board of Directors of EURELECTRIC), and a Member of Council of the Lithuanian Energy Institute.
Gintaras Adzgauskas has been the Secretary of the Lithuanian Member Committee of the World Energy Council since 2001. In 1989 he graduated Kaunas University of Technology, Faculty of Energy Engineering with an Electrical Engineering diploma. He then worked at the Kruonis Pumped Storage Power Plant as a Power plant shift chief and Electrical engineer-designer of the technical department. He has held roles as an Energy Specialist at AB “Empower,” an energy engineering company, and as the Assistant to the Chairman of the Management Board at LEO.LT, head of “Lietuvos energija” AB Strategy Division. He worked in the Lithuanian Electricity Association since 2003, acting as Adviser to the President before becoming President himself. He has also, more recently, worked as a specialist energy expert. He was a member of the Board of Directors of EURELECTRIC. Mr Adzgauskas has recently been appointed as Adviser to the Speaker of the Parliament for Lithuania.
Energy in Lithuania
Energy leaders in Lithuania identify Russia as the country’s main Critical Uncertainty. This is related to the fact that Lithuania has recently been working on enhancing its energy security in response to Russia’s energy pressures. Indeed, Lithuania has been paying some of the highest prices for natural gas in Europe, until the construction of an LNG terminal in Klaipeda.
EU cohesion helped to finance most of the energy projects. As a result, new uncertainties have emerged towards funding, increasing uncertainties for the implementation of new projects.
As Lithuania continues its steps towards energy independence, the increase in electricity import poses a serious challenge. The 2018 National Energy Independence Strategy intends to increase local electricity generation from 35% to up to 45% in 2020-2030 and to generate 100% of its electricity demand by 2050. The increase in electricity generation is expected to be achieved using renewables, which are expected to increase their share in the energy mix gradually and reach 100% by 2050. The production capacity is planned to increase of 300MW with large wind farms and of about 200MW with small solar power plants, installed on prosumers houses by 2022.
Artificial intelligence and data, as well as digitalisation technologies, are driven by the private sector. Nevertheless, regulation is currently not favourable to their full commercialisation and wider implementation.
One of the priorities in the National Energy Independence Strategy is to increase energy efficiency by further accelerating the renovation of multi-dwelling and public buildings as well as the replacement of street lighting with energy-efficient solutions.
Lithuania has significantly reduced energy imports from Russia and has secured alternative gas supply through the LNG terminal in Klaipeda. Crude oil supply has been enhanced with the marine terminal in Būtingė, and electricity supply has been reinforced with Lit Pol link and NordBalt. The electricity system will be fully disconnected from Russia and Belarus after synchronisation of the Baltic electricity system with Continental Europe. Consumption of natural gas has significantly reduced after the implemented fuel shift of district heating from natural gas to biomass and waste.
Data AI and digitalisation are sceptically perceived by managers and consumers. Nevertheless, energy companies are reaching high digitalisation levels due to newly acquired digitalised equipment and are paying high attention to cyber security issues.
A significant share of district heating has been converted from natural gas to biomass, supported by EU cohesion funds. EU funds were used to build electricity connections between LitPollink and NordBalt. EU financial support is also expected for the synchronisation of the Baltic electricity systems with continental Europe. If funds are reduced or questions about their appointment arise in future, there may be additional uncertainties regarding the implementation of projects.
One of the priorities in the National Energy Independence Strategy is to increase energy efficiency. Investments in modernisation and replacement of worn out electricity networks will allow to reduce the number and duration of interruptions by one-third by 2022. The efficiency of biomass consumption will be increased through the replacement of old inefficient boilers. In addition, energy-saving agreements will be implemented with energy companies.
The share of renewable energy sources (RES) in the final consumption balance will be increased to 30% by 2020 and to 80% by 2050.
The share of RES and local resources in the district heating sector will grow to 70% by 2020 and to 100% by 2050. In the transport sector, RES participation will be increased to 10% by 2020 and to 50% by 2050. Further efforts will be made to increase LNG consumption to reduce the cost of maintenance of the LNG terminal in Klaipeda. The terminal will be purchased by the state after the lease expiration in 2024, with the aim to reduce maintenance costs. Costs will then be calculated for the terminal’s entire lifetime rather than for a shorter rental period. The Lithuanian Parliament, Seimas, has adopted the decision to purchase LNG terminal in 2018.
Investment plans announced by major energy players showcase the commitment in deploying natural gas and LNG, as well as bio-methane, as a flexible solution that could both foster the development of sustainable mobility and renewable energies.
Digitalisation of the country’s economy and the development of energy chains is at the core of the government and businesses strategies. The penetration of IT within energy sectors is enabling new business models and more efficient asset management. This trend has also increased the awareness on cyber security measures as part of the efforts to guarantee resilience of energy infrastructures and services. Moreover, the main national energy actors are working on the greater integration of energy networks within Europe and towards a Euro-Mediterranean area aimed at increasing security and resilience of the national energy system.
One of the main tasks for Lithuania’s energy sector is to implement the Baltic electricity system’s synchronisation with continental Europe by 2025. Prior to this step, the country will have the task to develop its own electricity generation capacity. For this purpose, the Lithuanian Ministry of Energy plans to use a capacity market model. To inform the process, the Ministry is collecting information from companies intending to build electricity generation capacity in Lithuania.