European Commission Approves Support for Renewables Production in Lithuania

The scheme, with an overall budget of €385 million, will be open to all renewable installations and will contribute to the EU environmental objectives without unduly distorting competition. Commissioner Margrethe Vestager, in charge of competition policy, said: “The scheme 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.”

On 1 May 2019, Lithuania will introduce a new aid scheme to support installations generating electricity from renewable sources such as wind, solar or hydropower. The scheme will help Lithuania reach its national target share of renewable energy sources in gross final energy consumption, which has been set at 38% by 2025. The renewable energy scheme will be applicable until 1 July 2025 or, alternatively, until the 38% target is reached.

The Commission found that the aid has an incentive effect, as the market price does not fully cover the costs of generating electricity from renewable energy sources and the beneficiaries will have to apply for the aid before the generating installations start operating. The aid is also proportionate and limited to the minimum necessary, as it only covers the difference between the production costs and the market price of electricity.