CURRENT STATUS OF ENERGY POLICY ON DEVELOPMENT OF DIDTRIBUTED GENERATION IN LITHUANIA

1. LITHUANIAN NATIONAL SEMINAR Role of DER in the EU and current status in the Baltic States CURRENT STATUS OF ENERGY POLICY ON DEVELOPMENT OF DIDTRIBUTED GENERATION IN LITHUANIA VACLOVAS MISKINIS VILNIUS, MARCH 6, 2007

2. Presentationplan • Introduction; • Policy documents and promotion of RES; • Actual development of electricity generation; • Possibilities to comply with country’s obligations; • Policy documents and promotion of distributed generation • Current status of DG in Lithuania and expected changes.

3. Energy Policy documents (1) • Law on Energy: One of the principal objectives of the state regulation in the energy sector is promotion of indigenous and renewable energy resources • Law on electricity, Article 9: The state will encourage the producers to generate electricity from renewable energy sources by imposing the public service obligation.

4. Energy Policy documents (2) • National Energy Strategy (approved by Seimas 10 October 2002): The State will support the implementation of projects for the use of wind, water, solar and other renewable energy resources and provide conditions for the EU structural and other support funds to be used for achieving these goals.

5. Energy Policy documents (3) • National Energy Strategy (approved by Seimas 18 January 2007): Strategic objectives of the NES To increase rapidly contribution of renewable and indigenous energy resources; To increase the share of renewable energy resources in the national balance of primary energy at least up to 20% by 2025;

6. Energy Policy documents (4) • National Energy Strategy (approved by Seimas 18 January 2007): Development of the power sector Lithuania will implement its commitments to the EU on the use of renewable energy resources for electricity generation… the share of renewable energy resources in the gross electricity generation balance will account for over 7% in 2010, and in 2025 their input should increase to 10%.

7. Energy Policy documents (5) • National Energy Strategy (approved by Seimas 18 January 2007): Development of indigenous and renewable energy To implement the programme for the construction of wind power plants with the total capacity of 200 MW and to draft a new long-term programme for usage of wind energy in Lithuania.

8. Procedure for promotion of electricity from RES

9. National policy instruments for support of RES-E • From 2002 feed-in tariffs have been applied for the purchasing of RES-E; • Wind, biomass, solar and hydro power plants are supported: • Feed-in tafiff, EUR ct/kWh • Hydro power plants (<10 MW) 5,79 • Wind power plants 6,37 • Biomass power plants 5,79 • These tariffs will be maintained until 31 December 2020; • 40% discount for the connection to the network of RES-E generators; • Exemption from the pollution charge for bio-fuel PP.

10. Presentationplan • Introduction; • Policy documents and promotion of RES; • Actual development of electricity generation; • Possibilities to comply with country’s obligations; • Policy documents and promotion of distributed generation • Current status of DG in Lithuania and expected changes.

11. Changes of electricity production in Lithuania (1)

12. Changes of electricity production in Lithuania (2)

13. Electricity production and consumption

14. Production of green electricity

15. Contribution of green electricity 4.8% 3.9% 3.6% 3.4% 3.2% 3.0% 3.6% 2.8% 1.7 1.3

16. Presentationplan • Introduction; • Policy documents and promotion of RES; • Actual development of electricity generation; • Possibilities to comply with country’s obligations; • Policy documents and promotion of distributed generation • Current status of DG in Lithuania and expected changes.

17. Directive 2001/77/EC on promotion of RES-E On 23 September 2003 Directive was amended by Act concerning the conditions of accession … and the adjustments to the Treaties on which the European Union is founded: The percentage contribution of RES-E in 1999-2000 for the Czech Republic, Estonia, Latvia, Lithuania,… and in 2010 are based on the national production of RES-E divided by gross national electricity consumption … based on 2000 data.

18. Contribution of green electricity

19. Growth rates of electricity consumption -2.2% 1.0% 1.8% 6.4% 4.3% 6.8% 4.2% 6.6% 4.3% 6.8% 4.3% 4.0%

20. Structure of gross electricity consumption 69.2 78.5 79.6 63.3 84.3 67.5

21. Forecast of electricity demand growth 13.0 0.91

22. Contribution of green electricity

23. Presentationplan • Introduction; • Policy documents and promotion of RES; • Actual development of electricity generation; • Possibilities to comply with country’s obligations; • Policy documents and promotion of distributed generation; • Current status of DG in Lithuania and expected changes.

24. Energy Policy documents (6) • National Energy Strategy (approved by Seimas 18 January 2007): Development of the power sector To use at maximum extent possibilities and positive features of development of distributed energy generation Increase of strategic reliability of energy supply To develop distributed electricity generation

25. Energy Policy documents (7) • National Energy Strategy (approved by Seimas 18 January 2007): Strategic objectives of the NES To increase the share of electricity generated by combined heat and power plants during the heating period in the national balance of electricity generation up to 35% in 2025;

26. Energy Policy documents (7) • National Energy Strategy (approved by Seimas 18 January 2007): Development of the district heating sector To fully implement the provisions of Directive 2004/8/EC of the European Parliament and of the Council on the promotion of cogeneration based on a useful heat demand in the internal energy market.

27. Presentationplan • Introduction; • Policy documents and promotion of RES; • Actual development of electricity generation; • Possibilities to comply with country’s obligations; • Policy documents and promotion of distributed generation • Current status of DG in Lithuania and expected changes.

28. Electricity generation by DG power plants

29. Share of distributed generation in the EU countries

30. Actual and expected new changes (1) • Installed capacity of 36 wind power plants is 55.35 MW, the winner of last tender is known and the programme of 200 MW will be implemented; • Modernization of boiler with thermal capacity of 60 MWat Vilnius CHP for use of biomass and peat for annual production of about 76 GWh of green electricity and 330 GWh of heat;

31. Electricity production by wind power plants in 2006

32. Electricity production by power plants using bio-fuel in 2006

33. Actual and expected new changes (2) • Modernization of district heating sector, including construction of comparatively small CHP and usage of bio-fuel (preliminary programme is prepared by LDHA); • Modernization of boiler houses by construction of CHP in branches of industry with high share of heat demand for technological processes (to be prepared in near future); • Ongoing activities directed to usage of municipal waste for heat and electricity generation, etc.

34. THANK YOU !