> ![](media/image1.png){width="0.7604166666666666in"
> height="0.7604166666666666in"}Embassy of the United States of America

####  Vilnius ⋅ Lithuania {#vilnius-lithuania .unnumbered}

Akmenų St. 6

########  {#section .unnumbered}

######## Renewable Energy Sector in Lithuania {#renewable-energy-sector-in-lithuania .unnumbered}

Commercial Opportunities for US Companies

##### M A R K E T R E S E A R C H S T U D Y

> **[Prepared by:]{.smallcaps}**

![](media/image2.wmf){width="2.1569444444444446in"
height="0.6569444444444444in"}

***[UAB \"Bankinės konsultacijos\"]{.smallcaps}***

Gedimino pr. 26, LT-01104 Vilnius

> Tel.: 8 5 261 62 74

Vilnius, 2008

**Contents**

[1. General information 2](#general-information)

[2. Solar energy 9](#solar-energy)

[3. Hydropower 11](#hydropower)

[4. Biomass 14](#biomass)

[5. Geothermal energy 27](#geothermal-energy)

[6. Wind power 30](#wind-power)

# GENERAL INFORMATION {#general-information .1-headingas}

**Values in this study are presented in USD. The official exchange rate
of the USD to the LTL was 2.2154 on 31 July 2008.**

##  {#section-1 .2-headingas}

## 1.1. CURRENT MARKET SITUATION {#current-market-situation .2-headingas}

The following are renewable energy sources (RES) used in Lithuania:

-   solar energy

-   hydropower

-   biomass---wood fuel and wood waste fuel, biofuel (bioethanol is used
    to produce bioETBE (bioethyl tertiary butyl ether), biodiesel),
    biogas.

-   geothermal energy

-   wind power

(peat is not considered a renewable energy source).

Wood fuel and wood waste fuel are the most widely used RES in Lithuania
--- up to 87 percent (2007 data). The remaining 13 percent falls to
other RES.

Despite its small capacity, the RES sector is currently undergoing rapid
development. In 2001, the sector featured only wood fuel and hydropower.
Other resources were not available. All other RES have developed in the
past six years.

***[Table 1.1.]{.underline}***

**Production of renewable energy sources in Lithuania in 2007, *in Tera
Joules (TJ)***

+----+-----------------------------+-----+-----+------+------+------+
| #  |                             | **  | **  | **20 | **20 | **20 |
| ## |                             | 200 | 200 | 05** | 06** | 07** |
| ## |                             | 3** | 4** |      |      |      |
| ## |                             |     |     |      |      |      |
|  P |                             |     |     |      |      |      |
| ro |                             |     |     |      |      |      |
| du |                             |     |     |      |      |      |
| ct |                             |     |     |      |      |      |
| io |                             |     |     |      |      |      |
| n  |                             |     |     |      |      |      |
| of |                             |     |     |      |      |      |
|  r |                             |     |     |      |      |      |
| es |                             |     |     |      |      |      |
| ou |                             |     |     |      |      |      |
| rc |                             |     |     |      |      |      |
| es |                             |     |     |      |      |      |
+----+-----------------------------+-----+-----+------+------+------+
| S  |                             | N/A | N/A | N/A  | N/A  | N/A  |
| ol |                             |     |     |      |      |      |
| ar |                             |     |     |      |      |      |
| en |                             |     |     |      |      |      |
| er |                             |     |     |      |      |      |
| gy |                             |     |     |      |      |      |
+----+-----------------------------+-----+-----+------+------+------+
| Hy |                             | 1.  | 1.  | 1    | 1    | 1    |
| dr |                             | 170 | 514 | .622 | .430 | .514 |
| op |                             |     |     |      |      |      |
| ow |                             |     |     |      |      |      |
| er |                             |     |     |      |      |      |
+----+-----------------------------+-----+-----+------+------+------+
| B  | Bio-ETBE (bioethyl tertiary | 0   | 0   | 0    | 542  | 920  |
|    | butyl ether)                |     |     |      |      |      |
| I  |                             |     |     |      |      |      |
|    |                             |     |     |      |      |      |
| O  |                             |     |     |      |      |      |
|    |                             |     |     |      |      |      |
| M  |                             |     |     |      |      |      |
|    |                             |     |     |      |      |      |
| A  |                             |     |     |      |      |      |
|    |                             |     |     |      |      |      |
| S  |                             |     |     |      |      |      |
|    |                             |     |     |      |      |      |
| S  |                             |     |     |      |      |      |
+----+-----------------------------+-----+-----+------+------+------+
|    | Biodiesel---methyl (ethyl)  | 0   | 82  | 260  | 383  | 917  |
|    | esther                      |     |     |      |      |      |
+----+-----------------------------+-----+-----+------+------+------+
|    | Biogas                      | 78  | 68  | 77   | 83   | 103  |
+----+-----------------------------+-----+-----+------+------+------+
|    | Bioethanol                  | 0   | 69  | 267  | 367  | 402  |
+----+-----------------------------+-----+-----+------+------+------+
|    | Wood fuel and wood waste    | 28. | 29. | 30   | 31   | 30   |
|    | fuel                        | 112 | 156 | .131 | .659 | .488 |
+----+-----------------------------+-----+-----+------+------+------+
| Ge |                             | 124 | 122 | 121  | 70   | 65   |
| ot |                             |     |     |      |      |      |
| he |                             |     |     |      |      |      |
| rm |                             |     |     |      |      |      |
| al |                             |     |     |      |      |      |
| en |                             |     |     |      |      |      |
| er |                             |     |     |      |      |      |
| gy |                             |     |     |      |      |      |
+----+-----------------------------+-----+-----+------+------+------+
| Wi |                             | 0   | 4   | 6    | 49   | 382  |
| nd |                             |     |     |      |      |      |
| p  |                             |     |     |      |      |      |
| ow |                             |     |     |      |      |      |
| er |                             |     |     |      |      |      |
+----+-----------------------------+-----+-----+------+------+------+
| *  |                             | *   | *   | **   | **   | **   |
| *T |                             | *29 | *31 | 32.4 | 34.5 | 34.7 |
| ot |                             | .48 | .01 | 84** | 83** | 91** |
| al |                             | 4** | 5** |      |      |      |
| R  |                             |     |     |      |      |      |
| ES |                             |     |     |      |      |      |
| ** |                             |     |     |      |      |      |
+----+-----------------------------+-----+-----+------+------+------+
| *  |                             | **  | **  | **6  | **5  | **5  |
| *T |                             | 649 | 703 | 59.2 | 93.4 | 04.7 |
| ot |                             | .18 | .96 | 17** | 34** | 62** |
| al |                             | 4** | 9** |      |      |      |
| en |                             |     |     |      |      |      |
| er |                             |     |     |      |      |      |
| gy |                             |     |     |      |      |      |
| pr |                             |     |     |      |      |      |
| od |                             |     |     |      |      |      |
| uc |                             |     |     |      |      |      |
| ed |                             |     |     |      |      |      |
| ** |                             |     |     |      |      |      |
+----+-----------------------------+-----+-----+------+------+------+
| *  |                             | **4 | **  | **4. | **5. | *    |
| *R |                             | .54 | 4.4 | 9%** | 8%** | *6.8 |
| ES |                             | %** | %** |      |      | 9%** |
| s  |                             |     |     |      |      |      |
| ha |                             |     |     |      |      |      |
| re |                             |     |     |      |      |      |
| ** |                             |     |     |      |      |      |
+----+-----------------------------+-----+-----+------+------+------+

Source: Department of Statistics under the Government of the Republic of
Lithuania

In 2007, a total of 504,762 TJ of energy was produced in Lithuania. The
majority included automobile diesel (16 percent), gasoline (14 percent),
and nuclear power (21 percent). The general reduction in production was
caused by the closure of the first unit of Ignalina Nuclear Power Plant
and an interruption at Mažeikiai Oil Refinery due to a fire.

Only 34,791 TJ was produced from renewable energy resources. **This made
up 6.89 percent of total energy produced in Lithuania in 2007.**

***[Table 1.2.]{.underline}***

**Production of renewable energy sources in Lithuania in** 2007

+----+-------------------------------+-----+-----+-----+-----+-----+
| #  |                               | **  | **  | **  | **  | **  |
| ## |                               | 200 | 200 | 200 | 200 | 200 |
| ## |                               | 3** | 4** | 5** | 6** | 7** |
| ## |                               |     |     |     |     |     |
|  P |                               |     |     |     |     |     |
| ro |                               |     |     |     |     |     |
| du |                               |     |     |     |     |     |
| ct |                               |     |     |     |     |     |
| io |                               |     |     |     |     |     |
| n  |                               |     |     |     |     |     |
| of |                               |     |     |     |     |     |
|  r |                               |     |     |     |     |     |
| es |                               |     |     |     |     |     |
| ou |                               |     |     |     |     |     |
| rc |                               |     |     |     |     |     |
| es |                               |     |     |     |     |     |
+----+-------------------------------+-----+-----+-----+-----+-----+
| S  |                               | N/A | N/A | N/A | N/A | N/A |
| ol |                               |     |     |     |     |     |
| ar |                               |     |     |     |     |     |
| e  |                               |     |     |     |     |     |
| ne |                               |     |     |     |     |     |
| rg |                               |     |     |     |     |     |
| y, |                               |     |     |     |     |     |
| G  |                               |     |     |     |     |     |
| Wh |                               |     |     |     |     |     |
+----+-------------------------------+-----+-----+-----+-----+-----+
| H  |                               | 32  | 42  | 45  | 39  | 42  |
| yd |                               | 5.1 | 0.5 | 0.7 | 7.1 | 0.6 |
| ro |                               |     |     |     |     |     |
| po |                               |     |     |     |     |     |
| we |                               |     |     |     |     |     |
| r, |                               |     |     |     |     |     |
| G  |                               |     |     |     |     |     |
| Wh |                               |     |     |     |     |     |
+----+-------------------------------+-----+-----+-----+-----+-----+
| B  | Bio-ETBE (bioethyl tertiary   | 0   | 0   | 0   | 1   | 2   |
|    | butyl ether), *thousand       |     |     |     | 4.7 | 5.6 |
| I  | metric tons*                  |     |     |     |     |     |
|    |                               |     |     |     |     |     |
| O  |                               |     |     |     |     |     |
|    |                               |     |     |     |     |     |
| M  |                               |     |     |     |     |     |
|    |                               |     |     |     |     |     |
| A  |                               |     |     |     |     |     |
|    |                               |     |     |     |     |     |
| S  |                               |     |     |     |     |     |
|    |                               |     |     |     |     |     |
| S  |                               |     |     |     |     |     |
+----+-------------------------------+-----+-----+-----+-----+-----+
|    | Biodiesel---methyl (ethyl)    | 0   | 2.2 | 7   | 1   | 2   |
|    | esther, *thousand metric      |     |     |     | 0.3 | 4.8 |
|    | tons*                         |     |     |     |     |     |
+----+-------------------------------+-----+-----+-----+-----+-----+
|    | Biogas, *million cubic        | 3.9 | 3.4 | 3.9 | 4.2 | 5.2 |
|    | meters*                       |     |     |     |     |     |
+----+-------------------------------+-----+-----+-----+-----+-----+
|    | Bioethanol, *thousand metric  | 0   | 1.9 | 7.2 | 9.9 | 1   |
|    | tons*                         |     |     |     |     | 4.9 |
+----+-------------------------------+-----+-----+-----+-----+-----+
|    | Wood fuel and wood waste      | 3   | 3   | 3   | 3   | 3,  |
|    | fuel, *thousand cubic meters* | ,42 | ,55 | ,67 | ,86 | 718 |
|    |                               | 8.3 | 5.6 | 4.5 | 0.8 |     |
+----+-------------------------------+-----+-----+-----+-----+-----+
| Ge |                               | 1   | 1   | 1   | 9.7 | 9   |
| ot |                               | 7.2 | 6.9 | 6.9 |     |     |
| he |                               |     |     |     |     |     |
| rm |                               |     |     |     |     |     |
| al |                               |     |     |     |     |     |
| e  |                               |     |     |     |     |     |
| ne |                               |     |     |     |     |     |
| rg |                               |     |     |     |     |     |
| y, |                               |     |     |     |     |     |
| G  |                               |     |     |     |     |     |
| Wh |                               |     |     |     |     |     |
+----+-------------------------------+-----+-----+-----+-----+-----+
| Wi |                               | 0   | 1.2 | 1.8 | 1   | 10  |
| nd |                               |     |     |     | 3.7 | 6.1 |
| po |                               |     |     |     |     |     |
| we |                               |     |     |     |     |     |
| r, |                               |     |     |     |     |     |
| G  |                               |     |     |     |     |     |
| Wh |                               |     |     |     |     |     |
+----+-------------------------------+-----+-----+-----+-----+-----+

Source: Department of Statistics under the Government of the Republic of
Lithuania

***[Diagram 1.1.]{.underline}***

######### General consumption of renewable energy resources in 2007

![](media/image3.wmf)*Source: Department of Statistics under the
Government of the Republic of Lithuania*

Presently, wood fuel energy is the most accessible RES for consumers.
This could be due to the availability of supplies. Production of other
RES in Lithuania is far less developed and the capacities are smaller.

**At the end of 2009, the unit 2 reactor of Ignalina Nuclear Power Plant
will be closed. Thus, Lithuania will experience a large shortage of
reasonably priced electrical power. According to an optimistic forecast
by the public limited company LEO LT, a new nuclear plant will be built
in 2015. Hence, it is anticipated that for at least 6 years demand for
reasonably priced electricity will exceed supply, resulting in higher
electricity costs.**

Lithuania is obligated as a member of the European Union to increase
production of electrical energy from RES to 7 percent of all
*electricity* production by 2010. As you can see from Diagram 1.2 below,
wind power and biomass energy production will be developed the most. The
prospects for development of hydropower and solar energy are rather
uncertain.

***[Diagram 1.2.]{.underline}***

**Production of electricity from renewable energy resources in
Lithuania**

![](media/image4.wmf)![](media/image5.wmf)

Source: 1. Public limited company AB Lietuvos Energija (2006). 2.
Forecast by the state enterprise Energetikos agentūra (Energy Agency)
for 2010.

Lithuania must increase production from RES to 12 percent of all energy
produced by 2010. Therefore, in order to avoid fines, Lithuania must,
within four years (2006--2010), increase twofold the amount of energy
from RES. In addition, in the long term (by 2020) Lithuania must reach
the EU level and produce 20 percent of its energy from RES.

Renewable energy resources are generally used for production of
electricity and hot water supply.

***[Table 1.3]{.underline}***

######### Value of production and distribution of electricity and production of steam and hot water supply in Lithuania, *in USD*

  ------------------------- ------------------- ------------------- ------------------- -------------------
  ** **                     **2004**            **2005**            **2006**            **2007**

  Production and            1,502,882,549       1,546,128,916       1,578,324,456       1,835,669,405
  distribution of                                                                       
  electricity                                                                           

  Supply of steam and hot   579,616,322         586,240,408         646,035,930         663,553,760
  water                                                                                 

  **Sum total**             **2,082,498,872**   **2,132,369,324**   **2,224,360,386**   **2,499,223,165**

  **Per inhabitant**        **595**             **609**             **636**             **714**
  ------------------------- ------------------- ------------------- ------------------- -------------------

*Source: Department of Statistics under the Government of the Republic
of Lithuania*

As shown in the table above, in 2007 the value of electric and thermal
energy produced in Lithuania was 2,499,223,160 USD. Since RES was only
6.89 percent of this amount, its value would be correspondingly
172,200,000 USD. Considering the obligation to increase RES use to 12
percent by 2010, in two year's time this sector could be worth
\~300,000,000 USD.

In view of the consumption forecast and current oil prices, the RES
market has a potential for development in Lithuania. The major part of
the energy market still consumes non-renewable energy that becomes more
expensive every day and sooner or later will have to readjust to using
renewable power resources. Establishment in the market today could be
very important for the future, when demand is forecast to grow
considerably.

## 1.2. LEGAL FRAMEWORK {#legal-framework .2-headingas}

The Department of Energy at the Ministry of Economy is directly
responsible for development of the RES sector in Lithuania. The
department controls companies operating in Lithuania and monitors the
establishment of new firms. The following is the general legal framework
that outlines and regulates RES related activities:

-   EU strategy for biofuels by 2030.

> (<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2006:0034:FIN:EN:HTML>)

-   Directive 2001/77/EC of the European Parliament and of the Council
    of 27 September 2001 on the promotion of electricity produced from
    renewable energy sources in the internal electricity market.

> (<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32001L0077:EN:HTML>)

-   Directive 2003/30/EC of the European Parliament and of the Council
    on the promotion of the use of biofuels or other renewable fuels for
    transport.

> (<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32003L0030:EN:HTML>)

-   Communication of 01/10/2007 from the Commission to the European
    Council and the European Parliament - An energy policy for Europe.

> (<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2007:0001:FIN:EN:HTML>)

-   Resolution on approval of the national energy strategy (*Official
    Gazette*, 2007, No. X-1046)
    ([http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=292522](http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=197078))

-   Law on Biofuel, Biofuels for Transport and Bio-oils (*Official
    Gazette*, 2000, No. VIII-1875)
    (<http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=243625>)

-   Law on Energy (*Official Gazette*, 2002, No. 56-2224) - available
    only in Lithuanian at time of reporting
    (<http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=297894&p_query=&p_tr2=)>

-   Program for promotion of the production and use of biofuel in
    2004--2010 (*Official Gazette*, 2004, No. 133-4786)
    (<http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=265232>)

-   National energy efficiency program 2006--2010 (*Official Gazette*,
    2006, No. 443)
    (<http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=305634>)

The Ministry of the Environment solves all the issues related to the use
of resources. On the basis of the laws adopted by the parliament, the
Ministry of Economy identifies rules for economic activities, whereas
municipal governments monitor how companies observe the rules.

##  {#section-2 .2-headingas}

## 1.3. EU, NATIONAL SUPPORT AND TAX RELIEF {#eu-national-support-and-tax-relief .2-headingas}

The RES sector is supported by the European Union. It's one of the
priority areas of the economy for the receipt of support.

### 1.3.1. 2007-2013 European Union Structural Fund Programme {#european-union-structural-fund-programme .3-headingas}

###### **Use of biomass**. Structural fund support is provided for the use of biomass in the production of energy. The following is supported:

-   modernization of boilers that provide central heating by changing
    the type of currently used fuel to biomass or the construction of
    new boilers;

-   modernization of thermal power plants that provide central heating
    by changing the type of currently used fuel to biomass or the
    construction of new plants.

Projects may be implemented by companies (including companies of foreign
capital). Approximately 115 million USD is allocated for the program.
The maximum amount per project cannot exceed 7.9 million USD. Fifty
percent of the project will be funded.

**Partial compensation of loan interest**. Small and medium size
companies will be provided partial compensation of loan interest. It
must be an investment loan and cannot exceed 1.13 million USD.
Compensation of 50 percent of loan interest is provided for no longer
than 36 months.

### 1.3.2. Tax relief {#tax-relief .3-headingas}

***[Law on Pollution Tax]{.underline}***. The following individuals and
companies are exempt from the ax:

-   Individuals and companies are exempt from the tax applicable for
    environment pollution by transport vehicles using bio-fuel of
    established standards.

-   Individuals and companies are exempt from the tax applicable for
    environment pollution from stationary sources of pollution for
    pollutants discharged into the atmosphere when using bio-fuel.

(<http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=315265>)

***[Excise Law]{.underline}***. Excise relief for energy products from
biological materials or materials that include biological additives. The
excise tariff is reduced proportional to the amount of biological
additives per metric ton of the product. Only a Lithuanian version of
the law was available at the time of reporting.

(<http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=311521&p_query=&p_tr2=>)

# sOLAR ENERGY {#solar-energy .1-headingas}

## 2.1. CURRENT SITUATION {#current-situation .2-headingas}

**[Solar electric energy.]{.underline}** No large photoelectric power
plants are operating in Lithuania today. There are some small private
installations that use solar energy for their needs. Today photo
electricity is twice as expensive as that produced by thermal or nuclear
power plants. The average electricity price produced by a nuclear plant
is 0.089 USD/kWh and that produced by a photoelectric power plant is
0.178 USD/kWh. Due to Lithuania's geographical location, i.e. seasonal,
daily, and meteorological changes, it is not expected to make its
electricity requirements solely from photo electricity, although this
may considerably reduce the consumption of other resources.

**[Solar thermal energy.]{.underline}** Lithuania receives 1,000
kWh/m^2^ (total: 65 million kWh) of solar energy per year. But more than
80 percent of it is distributed during the 6 months of April through
September. Theoretically, it could be used in agriculture for grain
drying and similar purposes. However, there is no widely developed solar
thermal energy use in Lithuania.

## 2.2. LEGAL AcTS {#legal-acts .2-headingas}

See section 1.2. No other legislation exists.

## 2.3. EU AND NATIONAL SUPPORT AND TAX RELIEF {#eu-and-national-support-and-tax-relief .2-headingas}

No national assistance, tax relief, or support from the 2007--2013
European Union Structural Fund Programme is planned for solar power.

## 2.4. maJOR market players {#major-market-players .2-headingas}

No medium or large direct market players producing electricity from
photoelectric power plants or other solar energy installations are
present in Lithuania. Details of other related companies are provided in
the table below.

  ----------------- ----------------------- -----------------------------------
  **Company**       **Contact**             **Activities**

  Public limited    Ateities g. 10,         The company has developed and
  company AB        Vilnius. tel.: +370 5   produced solar batteries of 13
  Vilniaus Ventos   2712200, e-mail:        percent efficiency. Production is
  Puslaidininkiai   <vvp@mail.vvp-uab.lt>   based on monocrystal silicon solar
                                            battery technology. The plant is
                                            trying to develop new technology
                                            that would reduce their costs by
                                            one-third and increase the
                                            efficiency of solar batteries to 15
                                            percent.

  Private limited   Dubingių g. 3, LT-49362 The company has the capacity to
  company UAB       Kaunas, tel.: +370 688  produce solar battery modules by
  Saulės Energija   45876                   using solar batteries produced in
                                            Lithuania.
  ----------------- ----------------------- -----------------------------------

## 2.5. MARKET DEVELOPMENT PROSPECTS {#market-development-prospects .2-headingas}

The potential of photoelectric power plants is far greater than that of
other renewable energy resources. Unfortunately, development of these
power plants is impeded by a much higher price per watt of electricity
than the price of a traditional power plant. Only new technological
principles, new materials or considerable climate changes in Lithuania
may substantially change the situation.

## 2.6. INVESTMENT OPPORTUNITIES {#investment-opportunities .2-headingas}

If during the short term (2 years), no new technologies or sources of
support are available, production costs will remain high, meteorological
conditions in Lithuania will not experience fundamental changes and
investment possibilities will remain vague.

In the medium term (5 years), no radical changes are envisaged. There is
a possibility that additional EU support sources or more favorable legal
framework in the future may make the return on investment more
attractive.

According to the Ministry of Agriculture, in 2020, when other types of
fuel become more expensive and new technologies develop, the prices of
solar energy and standard electric energy will become similar. Thus in
the long term (up to 10 years) the price of solar energy may become more
attractive than that of other resources. Economic potential includes
production of hot water (0.5 TWh), drying of agricultural products (0.8
TWh), and passive heating of premises (1.25 TWh). In the more distant
future (more than 10 years), solar energy may be used for central
heating in cities and preparation of hot water in the spring and summer.

## 2.7. SUMMARY {#summary .2-headingas}

+------------+---------------------------------------------------------+
| **Current  |                                                         |
| s          |                                                         |
| ituation** |                                                         |
+------------+---------------------------------------------------------+
| The amount | Only several private installations for personal needs.  |
| produced,  |                                                         |
| in 2007    |                                                         |
+------------+---------------------------------------------------------+
| Price      | Purchase price of electricity has not been set by the   |
|            | National Control Commision for Prices and Energy;       |
|            | production cost---around 0.178 USD/kWh.                 |
+------------+---------------------------------------------------------+
| Obstacles  | More than 80 percent of solar energy in Lithuania is    |
|            | distributed over a period of less than 6 months.        |
+------------+---------------------------------------------------------+
| #######    |                                                         |
|  Prospects |                                                         |
+------------+---------------------------------------------------------+
| Two years  | Small return on investment, because production costs    |
|            | will remain high.                                       |
+------------+---------------------------------------------------------+
| Five years | No fundamental changes; it is expected that more        |
|            | favorable opportunities will occur with the limitations |
|            | in the availability of non-renewable energy resources.  |
+------------+---------------------------------------------------------+

For more information, please contact the Lithuanian Energy Institute
(<http://www.lei.lt/>)

Juozas Savickas, tel.: +370 37 401844

# Hydropower {#hydropower .1-headingas}

## 3.1. CURRENT SITUATION {#current-situation-1 .2-headingas}

Currently in Lithuania, around 14 percent of available hydropower
resources are being used. This is only 0.3 percent of total energy
production in Lithuania. The value of annual production of electricity
by all market players in the hydropower sector in Lithuania (in 2007)
was 7.45 million USD (see Table 1.3).

Hydropower resources theoretically available in Lithuania total 2.7
billion kWh/year. Eighty percent of the hydropower energy comes from two
major rivers---Nemunas River and Neris River. The remaining 20 percent
of hydropower resources comes from small hydropower plants (the capacity
of under 10,000 kW; hereinafter---SHPP). Large hydropower plants are
more economically efficient, but their construction is more complex due
to strict ecological and large investment requirements.

Small, fully automated hydropower plants installed on ponds are becoming
economical. There are over 20 small hydropower plants in Lithuania.
Their total capacity amounts to under 7,000 kW and electricity
production is approximately 25 million kWh/year.

## 3.2. LEGAL ACTS {#legal-acts-1 .2-headingas}

Production of hydropower is regulated by the many legal acts listed in
section 1.2 of this study. The following are additional regulations:

-   Water Law of the Republic of Lithuania. (*Official Gazette*, 2003,
    No. IXP-2175(3SP))
    (<http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=207281>)

Only a Lithuanian version of the law was available at the time of
reporting.

-   Executive order of the Minister of the Environment of the Republic
    of Lithuania "On the assessment recommendations of the environmental
    impact of the planned economic activities (installation of
    hydropower plants)" (*Official Gazette*, 2003, No. 351)
    (<http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=215779&p_query=hidroenergetika&p_tr2=2>)

Only a Lithuanian version of the order was available at the time of
reporting.

## 3.3. EU, NATIONAL SUPPORT AND TAX RELIEF {#eu-national-support-and-tax-relief-1 .2-headingas}

No national assistance, tax relief, or support from the 2007--2013
European Union Structural Fund Programme is planned for hydropower. A
single large project was completed in this area---Renovation and
modernization of Kaunas Hydropower Plant---could not be implemented
without EU support. EU support was allocated because the project was of
national significance.

## 3.4. maJOR market players  {#major-market-players-1 .2-headingas}

There are more than 20 small hydropower plants in Lithuania. The two
large hydropower plants and a few small plants are listed in the table
below:

  -------------------- ---------------------------- -----------------------------------
  **Company**          **Contact**                  **Activities**

  Kaunas Hydropower    Branch of the public limited The largest power plant in
  Plant                company AB Lietuvos          Lithuania that uses renewable
                       Energija. T. Masiulio g.     energy source.
                       22A, LT-52439 Kaunas. +370   
                       37 350292. E-mail:           
                       <khe@lietuvosenergija.lt>    

  Kruonis              Branch of the public limited The plant is intended for balancing
  Hydro-accumulation   company AB Lietuvos          the required electricity supply for
  Power Plant          Energija. Kruonis 2,         the Lithuanian market. It is used
                       LT-56037, Kaišiadorių raj.   during emergencies or outages of
                       +370 528 30259. E-mail:      Ignalina Nuclear Power Plant. The
                       <khae.office@entra.lpc.lt>   plant uses hydro resources of
                                                    artificial water bodies. During
                                                    excesses of electric energy it
                                                    pumps water to the water reservoirs
                                                    located at a higher level, and
                                                    during shortages of electricity it
                                                    operates as a standard hydropower
                                                    plant.

  Private limited      Gižų km. LT-70013,           SHPP
  company Vokė         Vilkaviškio raj. +370 698    
  Hydropower Plant     21521.                       

  Private enterprise   Lentvario g. 1C, LT-27102,   SHPP
  Padubysio Mill       Grigiškės, Vilniaus raj.     
                       +370 600 19960               

  Private limited      Angiriai, LT-58181. Kėdainių SHPP. Capacity: 2x625 kW
  company Angiriai     r. +370 37 320518            
  Hydropower Plant                                  
  -------------------- ---------------------------- -----------------------------------

##  {#section-3 .2-headingas}

## 3.5. MARKET DEVELOPMENT PROSPECTS {#market-development-prospects-1 .2-headingas}

In general, SHPP are relatively expensive, in particular smaller ones,
but the return on investment is good due to the low cost of electricity.
In order to accelerate the development of this market, the
legal/economic policy of the government must come to its aid, because
the legal framework still has many shortcomings.

By eliminating the existing bureaucratic obstacles, the government of
Lithuania plans to encourage private capital to renovate old hydropower
plants and build new small ones on existing ponds. This is one-third
less expensive than building them in new locations. In Lithuania there
are about 130 possible locations where such plants could be built or
renovated. The total power output of plants that could be renovated
after renovation would be 16 MW and production would be 60 million
kWh/year. All those plants are expected to be renovated in 5--7 years.

## 3.6. INVESTMENT OPPORTUNITIES {#investment-opportunities-1 .2-headingas}

Investment opportunities both for short-term and medium-term investment
are similar: investments can be made into the existing infrastructure.

In the long term (over 10 years), it may be possible to build new SHPPs
that would produce up to 500 million kWh/year. However, new locations
must be thoroughly investigated, environmental impact analyses must be
completed, and all environmental protection requirements implemented.

## 3.7. SUMMARY {#summary-1 .2-headingas}

+------------+---------------------------------------------------------+
| **Current  |                                                         |
| s          |                                                         |
| ituation** |                                                         |
+------------+---------------------------------------------------------+
| Produced   | 420 GWh. This is 0.3 percent of the total energy        |
| amount, in | production.                                             |
| 2007       |                                                         |
+------------+---------------------------------------------------------+
| Price      | 0.089 USD / kWh as of July 31, 2008.                    |
+------------+---------------------------------------------------------+
| Obstacles  | Large hydropower plants are more economically efficient |
|            | and require a lot of investment; environmental          |
|            | requirements for such plants are of a very high         |
|            | standard. There are no obstacles for the installation   |
|            | of SHPP, but their efficiency is smaller than that of   |
|            | large hydropower plants.                                |
+------------+---------------------------------------------------------+
| #######    |                                                         |
|  Prospects |                                                         |
+------------+---------------------------------------------------------+
| Two years  | Investment into renovation of small hydropower plants   |
|            | or building new ones on existing dams.                  |
+------------+---------------------------------------------------------+
| Five years | Construction of small hydropower plants using modern    |
|            | technologies; exploration of opportunities to build     |
|            | large hydropower plants.                                |
+------------+---------------------------------------------------------+

For more information, please contact the Lithuanian Energy Institute
(<http://www.lei.lt/>)

Juozas Savickas, tel.: +370 37 401844

# biomasS {#biomass .1-headingas}

Biomass is one of the most promising types of RES in Lithuania. It
consists of various plants and organic substances. Biomass is divided
into:

-   Biofuel---biodiesel and bioethanol

-   Biogas

-   Energy crops

-   Wood

Each of the groups is detailed below.

## 4.1. biofuel {#biofuel .2-headingas}

There are two basic biofuel products: biodiesel and bioethanol. Tables
1.1 and 1.2 also include bio-ETBE (ethyl tertiary butyl ether). However
it is a fuel from bioethanol and will not be detailed here.

***[[Current situation]{.underline}]{.smallcaps}***

***Biodiesel.*** In 2007, 1,822,000 metric tons of diesel fuel were
produced in Lithuania. Only 24,800 metric tons was biodiesel, with a
production value of approximately 4.47 million USD (see Table 1.3). This
is 1.36 percent of total diesel amount production. The main obstacles
encountered on the market are higher subsidies for diesel producers in
neighboring Latvia and cheaper production from the countries in the
East, which distorts competition and sale of the products. Biodiesel
producers today face rather large problems trying to sell their products
and part of the production remains sold lower than market price because
of small demand. All the biodiesel produced in Lithuania is exported to
the EU, where there is fiercer competition among suppliers.

***Bioethanol***. In 2007, 14,900 metric tons of bioethanol were
produced in Lithuania, which is 0.08 percent of total energy produced
with a value of approximately 2 million USD (see Table 1.3). Since 2007,
grain prices have been on the rise in the world markets, including
Lithuania, but the price of bioethanol has remained unchanged. Therefore
the return on investment in the bioethanol production market is rather
uncertain, unless the sale price goes up.

Currently, in the retail fuel market, bioethanol E85 is sold only by a
single company, UAB Lietuva Statoil, and in only one gasoline station.

***[Table 4.1.1]{.underline}***

**Production and development prospects of biofuel in Lithuania in
2004--2010 (*thousand metric tons***)

  ---------- --------------- --------------- --------------- ---------------
  **Year**   **Production of **Production of **Total         **Percentage of
             biodiesel**     bioethanol**    biofuel**       the total
                                                             amount of
                                                             fuel**

  2004       2.2             1.7             3.9             0.035%

  2005       7.0             6.6             13.6            1.1%

  2006       10.3            14.3            24.6            2%

  2007       24.8            14.9            39.7            4.3%

  2008\*     150             30              180             10--13%

  2009\*     190             90              280             15--18%

  2010\*     190             130             320             18--20%
  ---------- --------------- --------------- --------------- ---------------

*Source: Ministry of Agriculture of the Republic of Lithuania*

*\* - planned*

***[[legal acts]{.underline}]{.smallcaps}***

Many legal acts listed in section 1.2 mention biofuel. One other legal
document should be mentioned: Order of Ministers of Economy,
Environment, and Communications of the Republic of Lithuania "On
mandatory approval of quality indices of oil products, biofuels, and
liquid fuel used in the Republic of Lithuania" (*Official Gazette*,
2006-08-31, No.: D1-399 / 4-336 / 3-340)

(<http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=282263&p_query=biodegalai&p_tr2=2>)

***[[eu, national support and tax relief]{.underline}]{.smallcaps}***

Direct support from EU funds for the construction of plants for the
production of bioethanol and biodiesel is not scheduled. However,
separate projects could be developed for the installation of storage or
drying facilities for grain and rape seed and receive at least partial
support.

The European Commission facilitates financial support to biofuel
producers. The Government of Lithuania also provides support from the
budget for each metric ton of rape seed and grain used for production.
The maximal amount of rape seed and grain for which support is provided
is set. Support is distributed among the producers on the basis of their
production quantity. Producers of biodiesel and rape seed oil are
eligible to receive 72.5 USD/t and producers of bioethanol can receive
51.6 USD/t.

Other types of support and tax relief are described in section 1.3.

***[[major market players]{.underline}]{.smallcaps}***

Table 4.1.2 provides a list of the largest ***biodiesel*** producers in
Lithuania. The largest company in this industry in Lithuania is the
private limited company UAB Mestilla. It operates a methyl esther plant
in Klaipėda with European state-of-the-art biofuel production
technologies. UAB Rapsoila produces biofuel; its capacity is 10,000
metric tons of methyl esther per year. Biodiesel produced in Lithuania
can be used both in summer and winter weather conditions.

***[Table 4.1.2]{.underline}***

**Producers of biodiesel and their production capacity (*thousand metric
tons***)

  -------- --------------------------------------- ---------- ---------- ------------ ------------
  **Seq.   **Company**                             **2007**   **2008**   **2009\***   **2010\***
  No.**                                                                               

  1        UAB Mestilla (Kretainio g. 5, Klaipėda. 100        100        100          100
           Tel.: +370 697 26500. E-mail:                                              
           <info@mestilla.lt>)                                                        

  2        UAB Rapsoila (Ukrinių km., Mažeikių     30         30         30           30
           raj. Tel.: +370 443 68022. E-mail:                                         
           <info@rapsoila.lt>)                                                        

  3        UAB Baltijos Biodyzelino Centras                   30         30           30
           (Verkių g. 5, Vilnius. Tel.: +370 5                                        
           2636267)                                                                   

  4        KB SV Obeliai (Audronių km., Rokiškio   8          20         20           20
           rajonas. Tel.: +370 686 09066)                                             

  5        UAB Arvi Cukrus (P. Armino g. 65,       12         12         12           12
           Marijampolė. Tel.: +370 343 97810.                                         
           E-mail: <info@arvicukrus.lt>)                                              

           **Total**                               **150**    **192**    **192**      **192**
  -------- --------------------------------------- ---------- ---------- ------------ ------------

*Source: Ministry of Agriculture of the Republic of Lithuania*

\* - *planned*

Biodiesel in Lithuania is predominantly produced from rape seed. Rape
seed is cultivated by many farmers, but the special seed for the
production of biodiesel is sparsely cultivated.

***[Table 4.1.3]{.underline}***

**Producers of rape seed used for biodiesel and their capacity
(*thousand metric tons***)

  -------- -------------------------------------------------------- --------------
  **Seq.   **Company**                                              **Production
  No.**                                                             capacities**

  1        KB SV Obeliai (Audronių km., Rokiškio rajonas. Tel.:     13.4
           +370 686 09066)                                          

  2        UAB Pasvalio Agrochemija (Mūšos g. 19, Pasvalys. Tel.:   6.1
           +370 451 34123. E-mail: <pasvalioagrochemija@takas.lt>)  

  3        Cooperative Raupaičių ūkis (Guragių km, Šiaulių raj.     5.3
           tel.: +370 686 78248. E-mail: <raupaiciai@erdves.lt>)    

  4        UAB ,Arvi Cukrus (P. Armino g. 65, Marijampolė. Tel.:    5
           +370 343 97810 E-mail: <info@arvicukrus.lt>)             

  5        UAB Žvalguva (Rėkyvos g. 21, Šiauliai. Tel.: +370 41     4
           540616)                                                  

  6        Cooperative Jaros Rapsas (Vilniaus g. 3, Anykščiai.      2
           Tel.: +370 381 59084.)                                   

  7        Farmers the Maksvyčiai (Šalčininkai)                     1.6

           **Total**                                                **37.4**
  -------- -------------------------------------------------------- --------------

*Source: Ministry of Agriculture of the Republic of Lithuania*

To date, ***bioethanol*** is produced in Lithuania by a single company,
UAB Biofuture. However, this monopoly will not last long. Another
company UAB Bioetan LT has a new factory under construction. It will
have a full production capacity of 100,000 cubic meters and start to
produce in the third quarter of 2009. More companies had plans to engage
in production, but some larger ones, like UAB Alfabioetanolis (Teatro g.
9a, Vilnius. Tel.: +370 5 2122473. E-mail: <adolfas.s@delfi.lt>) and UAB
Nordetanolis (Pramonės g. 8, Klaipėda. Tel.: +370 46 347485) are now
withdrawing from the market due to the reduction in market prices for
the product.

***[Table 4.1.4]{.underline}***

**Current and planned producers of bioethanol in Lithuania and their
production capacity (*thousand metric tons)***

  -------- ------------------------------------------ ---------- ---------- ------------ ------------
  **Seq.   **Company**                                **2007**   **2008**   **2009\***   **2010\***
  No.**                                                                                  

  1        UAB Biofuture (Šilo g. 4, Šilutė. Tel.:    20         40         40           40
           +370 44 161121)                                                               

  2        UAB Bioetan (A. Goštauto g. 12a, Vilnius.                        40           85
           Tel.: +370 6565 9007. E-mail:                                                 
           roman@bioetan.com)                                                            

  3        UAB Pasvalio Agrochemija (Mūšos g. 19,                           18           18
           Pasvalys. Tel.: +370 451 34123. E-mail:                                       
           <pasvalioagrochemija@takas.lt>)                                               

  4        UAB Arvi Cukrus (P. Armino g. 65,                                16           16
           Marijampolė. Tel.: +370 343 97810. E-mail:                                    
           <info@arvicukrus.lt>)                                                         

           **Total**                                  **20**     **40**     **114**      **159**
  -------- ------------------------------------------ ---------- ---------- ------------ ------------

*Source: Ministry of Agriculture of the Republic of Lithuania*

\* - pla*nned*

***[Table 4.1.5]{.underline}***

Company that embraces all the biofuel market

+------------+---------------+-----------------------------------------+
| #######    | **Contact**   | **Activities**                          |
| ## Company |               |                                         |
+------------+---------------+-----------------------------------------+
| UAB        | Konstitucijos | Biofuel producer/ecology business       |
| BioNovus   | pr. 7,        | company that efficiently uses renewable |
|            | Vilnius.      | energy resources. It is the largest     |
|            | tel.: +370 5  | waste management operation in the       |
|            | 2394930.      | Baltic States and runs several biofuel  |
|            | E-mail:       | production plants and waste management  |
|            | <info         | plants.                                 |
|            | @bionovus.lt> |                                         |
+------------+---------------+-----------------------------------------+

*Source: LITBIOMA*

The Association of Lithuanian Biofuel Producers and Suppliers "LITBIOMA"
(Konstitucijos pr. 7, Vilnius. tel.: +370 5 2394800. E-mail:
<asociacija@biokuras.lt>) has 23 members, including producers of biofuel
and all through to research institutions. Their focus is on the
implementation of innovations and research. The association is a member
of the European Biomass Association (AEBIOM).

***[[market development prospects]{.underline}]{.smallcaps}***

Market growth predicted by the Ministry of Agriculture is provided in
Table 4.1.1.

***[[investment opportunities]{.underline}]{.smallcaps}***

In the short term (up to 2 years), investment into newly built biodiesel
plants with surplus capacity, instead of building new plants, would be a
rational decision, because presently the number of market players is
increasing and total market capacity is increasing.

The available production capacity of bioethanol is 1.5 times larger than
its current use. The sale of ethanol produced from surplus grain can be
discussed with the oil refinery AB Mažeikių Nafta and used there in
production.

In the medium term (up to 5 years), it is worth researching the
opportunities of building new biodiesel and bioethanol production
capacities because current plants may not satisfy the demand.

***[[summary]{.underline}]{.smallcaps}***

+------------+---------------------------------------------------------+
| *          |                                                         |
| *Biodiesel |                                                         |
| Current    |                                                         |
| s          |                                                         |
| ituation** |                                                         |
+------------+---------------------------------------------------------+
| Produced   | 24.8 metric tons, which is 0.18 percent of all energy   |
| amount, in | produced.                                               |
| 2007,      |                                                         |
| *thousand  |                                                         |
| metric     |                                                         |
| tons*      |                                                         |
+------------+---------------------------------------------------------+
| Price      | \~1,718 USD/t                                           |
+------------+---------------------------------------------------------+
| Obstacles  | Strong competition, problems selling the production.    |
+------------+---------------------------------------------------------+
| #######    |                                                         |
|  Prospects |                                                         |
+------------+---------------------------------------------------------+
| Two years  | Increase in production by 40,000 metric tons is planned |
|            | due to the growth of production capacity. Possible to   |
|            | invest in the existing plants because the output of     |
|            | such plants may be insufficient                         |
+------------+---------------------------------------------------------+
| Five years | With increasing oil prices, demand for this product and |
|            | its price will grow, therefore it is worth              |
|            | investigating opportunities of building new plants.     |
+------------+---------------------------------------------------------+
| **         |                                                         |
| Bioethanol |                                                         |
| Current    |                                                         |
| s          |                                                         |
| ituation** |                                                         |
+------------+---------------------------------------------------------+
| Produced   | 14.9 metric tons, which is 0.08 percent of all energy   |
| amount in  | produced.                                               |
| 2007,      |                                                         |
| *thousand  |                                                         |
| metric     |                                                         |
| tons*      |                                                         |
+------------+---------------------------------------------------------+
| Price      | Retail price of bioethanol E85-- 1.35 USD/l             |
+------------+---------------------------------------------------------+
| Obstacles  | Currently the price of grain is rising, whereas the     |
|            | price of bioethanol remains unchanged. Several          |
|            | companies have already withdrawn from this business.    |
+------------+---------------------------------------------------------+
| #######    |                                                         |
|  Prospects |                                                         |
+------------+---------------------------------------------------------+
| Two years  | A new large plant will open. There will be favorable    |
|            | conditions for investment into the existing capacity.   |
+------------+---------------------------------------------------------+
| Five years | With increased demand, there may be a lack of           |
|            | production capacity and thus possibilities for          |
|            | investment in new plants.                               |
+------------+---------------------------------------------------------+

## 4.2. biogas {#biogas .2-headingas}

***[[current situacion]{.underline}]{.smallcaps}***

In 2007, approximately 5.2 million cubic meters of biogas was produced
in Lithuania with a value of around 0.497 million USD (see Table 1.3).
Around 1 million metric tons of industrial and household waste is
produced in Lithuania each year. Biodegradable waste is half that
amount. Separated biodegradable waste could be used for the production
of energy, but no possibilities for production exist in Lithuania
presently. Animal manure could be used in approximately 30 pig farms,
343 various companies, and 704 large cattle farms. The annual production
potential is 87.4 million cubic meters of biogas or 524.4 GWh. The
market players face the following problems:

-   Regulatory collision. Three ministries are responsible for this
    area, but there is no clear cut sharing of responsibilities, and
    decision-making is complicated.

-   Lithuanians are still skeptical of this business. The majority of
    companies dispose of manure without any interest in producing biogas
    energy.

-   Construction of bio power plants requires a large investment
    (approx. 695,000 USD per one unit reactor), and only farmers can
    obtain EU support.

-   Due to regulations, it is complicated to sell electricity or heat
    energy from RES to the state.

-   Only power plants built for agricultural purposes are supported.

***[[eu, national support and tax relief]{.underline}]{.smallcaps}***

Biogas can be used only for the needs of the farm, but not for
commercial purposes. Farmers or companies engaged in the production of
agricultural products and willing to build small power plants (15, 20,
30, and 50 kW) are eligible for support. Forty to fifty percent of all
expenses eligible for support are compensated. The largest amount per
single beneficiary cannot exceed 623,388 USD or per single
project---141,680 USD.

Tax relief is also applied as described in section 1.3.2.

***[[major market players]{.underline}]{.smallcaps}***

Currently, seven biogas power plants operate in Lithuania and recycle
city sewer sludge, pig manure, and a variety of organic waste (see Table
4.2.1). The biogas plants are capable of recycling approx. 350,000
metric tons of organic waste per year. Total capacity of the plants is
approx. 16 MW. The majority of them use biogas to produce electricity.
The amount of electricity produced is sufficient to satisfy their
company (for example UAB Rokiškio sūris) needs for electric energy.

***[Table 4.2.1]{.underline}***

######### Largest biogas power plants 

+------------------+--------+-----------------------------------------+
| #                | ####   | **Contact**                             |
| ######## Company | ### Ca |                                         |
|                  | pacity |                                         |
+------------------+--------+-----------------------------------------+
| UAB Sema         | 7.8 MW | Respublikos g. 82, Panevėžys. Tel.:     |
|                  |        | +370 45 461327. E-mail: sema@sema.lt    |
+------------------+--------+-----------------------------------------+
| Kauno nuotekų    | 3.8 MW | Marvelės 199a, Kaunas. Tel.: +370 37    |
| valymas (Kaunas  |        | 201723.                                 |
| Waster           |        |                                         |
| Treatment)       |        |                                         |
+------------------+--------+-----------------------------------------+
| Noreikiškių      | 1.05   | Owner: UAB Kauno energija. Respublikos  |
| biodujų jėgainė  | MW     | g. 82, LT-5319, Panevėžys. Tel.: +370   |
| (Noreikiškės     |        | 37 305650                               |
| Biogas Power     |        |                                         |
| Plant)           |        |                                         |
+------------------+--------+-----------------------------------------+
| UAB Vyčia        | 0.9 MW | Patalmusėlių km., Kauno raj. Tel.: +370 |
|                  |        | 37 436057                               |
+------------------+--------+-----------------------------------------+
| UAB Lekėčiai     | 0.6 MW | Sirvydų k., Lekėčių sen., Šakių raj.    |
|                  |        | sav. Tel.: +370 345 47888               |
+------------------+--------+-----------------------------------------+
| UAB Rokiškio     | 0.48   | Pramonės g. 3, Rokiškis. Tel.: +370 458 |
| sūris            | MW     | 55353. E-mail: rokiskis@rsuris.lt       |
+------------------+--------+-----------------------------------------+
| Utenos nuotekų   | 0.4 MW | Naujasodžio km., Utenos raj. Tel.: +370 |
| valymas (Utena   |        | 8389 65097                              |
| Waste Treatment) |        |                                         |
+------------------+--------+-----------------------------------------+

***[[market development prospects]{.underline}]{.smallcaps}***

This sector has great potential for development in the future, but in
order to improve the situation biogas production technologies, energy
efficiency, and laws regulating this sector must be improved.

***[[investment opportunities]{.underline}]{.smallcaps}***

The best option in the short term (up to 2 years) would be to install
biogas boilers for farmers and monitor the situation.

In the medium term (up to 5 years), expectations are that the
regulations for support will change and support will be provided for
more than energy produced for personal needs. It is possible to plan the
construction of a boiler unit with an ensured supply of cheap raw
materials, but competition is expected to grow in this sector.

***[[summary]{.underline}]{.smallcaps}***

+------------+---------------------------------------------------------+
| #####      |                                                         |
| ## Current |                                                         |
|  situation |                                                         |
+------------+---------------------------------------------------------+
| Produced   | 5,200,000 m^3^, which is 0.02 percent of all energy     |
| amount in  | produced.                                               |
| 2007,      |                                                         |
| *thousand* |                                                         |
+------------+---------------------------------------------------------+
| Price      | Raw materials are free or very cheap. No data about the |
|            | prices of biogas is available, because it is not sold   |
|            | (consumed for personal needs).                          |
+------------+---------------------------------------------------------+
| Obstacles  | Regulatory collision; large investment; negative        |
|            | attitude of Lithuanians; and it is difficult to sell    |
|            | energy. Only those involved in the production of        |
|            | agricultural products are eligible for support.         |
+------------+---------------------------------------------------------+
| #######    |                                                         |
|  Prospects |                                                         |
+------------+---------------------------------------------------------+
| Two years  | No significant changes; opportunities are in the        |
|            | installation of biogas boiler units for farmers.        |
+------------+---------------------------------------------------------+
| Five years | Research work will be completed on improvement of the   |
|            | energy efficiency of biogas, which is expected to       |
|            | increase the return on investment. Lobbying must be     |
|            | done in order to bring this issue to the attention of   |
|            | the ministries of the Republic of Lithuania.            |
+------------+---------------------------------------------------------+

##  {#section-4 .2-headingas}

## 4.3. ENERGY CROPS {#energy-crops .2-headingas}

***[[Current situation]{.underline}]{.smallcaps}***

Energy crops are agricultural plants and short rotation coppiced shrubs
(e.g., various types of willows (*Salix*)) cultivated as a raw material
for biofuel production. Rape seed is used in Lithuania for biodiesel
production. In 2007, 120,229 hectares of rape seed fields were declared
cultivated for biofuel. Wheat is mostly used for bioethanol production.
Approximately 39,000 hectares of wheat were declared to be cultivated
for the bioethanol production in 2007. In 2007, 300 hectares of
fast-growing shrubs (willows) were declared to be used as raw material
for the production of electricity and thermal energy. There are about
0.5 million hectares of unused land; part of it is perfectly suitable
for cultivating energy crops.

The key problem in this sector in Lithuania is decreased EU support, the
high price of uncultivated plots of land, lack of support for the
acquisition of special equipment, and bureaucracy.

*[[Straw.]{.underline}]{.smallcaps}* There are seven boiler units in
Lithuania that use straw fuel. Total output of the units is around 4.49
MW. About 1 percent of straw resources are used for energy purposes. One
of the largest engineering companies Cowi Baltic states that up to 15
percent of straw harvest could be used for fuel. The annual potential of
straw production in Lithuania is approximately 400,000 metric tons.
Current annual output of energy from straw fuel in Lithuania is 50 MWh;
by 2020 this figure could reach 1,500 MWh per year.

***[[legal acts]{.underline}]{.smallcaps}***

Apart from the legal acts listed in section 1.2, the following is the
legal framework on energy crops:

Order of the Minister of Agriculture of the Republic of Lithuania "On
direct payments for agricultural land and crop fields and payment of
support for an energy crop in 2007" (2008, No. 3D-160)
(<http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=316722>).

Order of the Minister of Agriculture of the Republic of Lithuania "On
the confirmation of administration and the rules of control of support
payment for an energy crop intended for the production of biofuel"
(2008, No.: 3D223).

(<http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=321753&p_query=biodegalai&p_tr2=2>)

***[[eu, national support and tax relief]{.underline}]{.smallcaps}***

Direct payment for an energy crop (European Union support and payments
from the budget of the Republic of Lithuania) annually amounts to 257
USD per hectare of land.

Production of biomass by growing fast rotation shrubs is also supported.
Maximal expenses for cultivating willows (*Salix*) and shrub willows
(*Salix* subgen. *Caprisalix)* eligible for funding amount to 2,338
USD/ha, and for common osier (*Salix Viminalis*) this figure reaches
1,634−3,737 USD/ha. The support cannot exceed 623,388 USD per single
beneficiary and 141,679 USD per single project. Beneficiaries:
individuals and companies that own agricultural land. Forty to fifty
percent of all expenses eligible for support are compensated.

Support available for the construction or modernization of boiler units
is described in section 1.3.1. It is also possible to apply all tax
relief instances listed in section 1.3.2.

***[[major market players]{.underline}]{.smallcaps}***

To date, there are not many players in this market, but several
companies cultivate energy crops and several purchase these crops.

Many farmers cultivate rape seed and corn for biofuel. Usually they are
cultivated by medium-sized farms with several hundred hectares of land
with only some of the production devoted to crops for energy production.

  --------------- ---------------------------------------------- -----------------------
  **Company**     **Contact**                                    **Activities**

  UAB Renergija   Žirmūnų 38a-30, Vilnius. Tel.: +370 698 11     Cultivation of energy
                  300, e-mail: <donatas@renergija.lt>            crops.

  Farm "Gamtos    Žingių km., Sužionių sen., Vilniaus raj.,      Cultivation of willows
  turtai"         tel.: +370 682 10 884, e-mail:                 and other plants.
                  <info@gamtosturtai.lt>                         

  UAB BioNovus    Konstitucijos pr. 7, LT-09308, Vilnius. Tel.:  Purchase, production,
                  +370 5 239 49 30, e-mail: <info@bionovus.lt>   and supply of osier
                                                                 biofuel.

  UAB Žaliasis    <http://www.zaliasiskuras.lt/kontaktai.html>   Cultivation and
  Kuras                                                          distribution of an
                                                                 energy crop.
  --------------- ---------------------------------------------- -----------------------

Currently, the majority of biofuel power plants are located around the
city of Kaunas (seven plants). Four boiler units that use straw operate
in the Panevėžys district.

In the near future, Lithuanian heating supply companies are planning to
implement projects that will call for a rather large investment:
reconstruction of Petrašiūnai Power Plant for the consumption of biofuel
(11.2 million USD) and the construction of a biofuel cogeneration power
plant in Utena (8.9 million USD).

***[[market development prospects]{.underline}]{.smallcaps}***

A 500 percent growth in biodiesel production is forecasted starting from
2008. Therefore, the demand for rape seed will increase from 135,000
metric tons to 570,000 metric tons per year. According to the
calculations made by the scientists of the Lithuanian Academy of
Agriculture, as many as 400,000 hectares of land could be allocated for
the cultivation of rape seed. This would fully satisfy the demand for
biodiesel. The Ministry of Economics believes that by 2009 the
production of bioethanol in Lithuania will increase fourfold and that
the demand for grain will therefore increase respectively.

***[Table 4.5.1]{.underline}***

**Demand for energy crops for the production of biofuel (*thousand
metric tons***)

+----------------+------------+------------+------------+------------+
| ####### Crop   | **2007     | **2008**\* | **2009**\* | **2010**\* |
|                | (c         |            |            |            |
|                | onsumed)** |            |            |            |
+----------------+------------+------------+------------+------------+
| Rape seed      | 75         | 450-500    | 500        | 500        |
+----------------+------------+------------+------------+------------+
| Corn           | 52         | 100        | 300        | 450        |
+----------------+------------+------------+------------+------------+

*Source: Ministry of Agriculture of the Republic of Lithuania.*

-   *- planned*

***[[investment opportunities]{.underline}]{.smallcaps}***

In the short term (up to 2 years), cultivation of various crops could be
done as this does not require a large investment, but, according to the
laws of the Republic of Lithuania it is necessary to own the land. Since
the EU set an objective for Lithuania to increase the production of
electricity from RES to 7 percent by 2010, this would considerably
contribute to the development of this sector.

In the medium term (up to 5 years), establishment of willow plantations
should be welcome and the support of investors and the EU is expected.

summary

+------------+---------------------------------------------------------+
| #####      |                                                         |
| ## Current |                                                         |
|  situation |                                                         |
+------------+---------------------------------------------------------+
| Produced   | 159,489 hectares. On average 3.6 metric tons per        |
| amount in  | hectare, which amounts to approx. 574,000 metric tons.  |
| 2007       |                                                         |
+------------+---------------------------------------------------------+
| Price      | Rape as energy crop: approx. 626 USD/t; willows: 1 m^3^ |
|            | of wood approx. 10 USD.                                 |
+------------+---------------------------------------------------------+
| Obstacles  | No support for the purchase of equipment, long          |
|            | procedures and bureaucracy acquiring land for crops,    |
|            | declarations, etc.                                      |
+------------+---------------------------------------------------------+
| #######    |                                                         |
|  Prospects |                                                         |
+------------+---------------------------------------------------------+
| Two years  | No large investment required, therefore it possible to  |
|            | investigate opportunities to purchase suitable plots of |
|            | land, though the selection of large plots is very       |
|            | limited.                                                |
+------------+---------------------------------------------------------+
| Five years | Depends on the situation in the future, but the         |
|            | conditions for the development of this industry are     |
|            | favorable, and the market for the products is expected  |
|            | to grow.                                                |
+------------+---------------------------------------------------------+

## 4.4. WOOD {#wood .2-headingas}

***[[current situation]{.underline}]{.smallcaps}***

The annual volume of tree felling in Lithuania is around 6 million cubic
meters. The consumption of wood fuel and wood waste fuel is around 3.7
million cubic meters. Wood accounts for 6 percent of the total energy
produced in Lithuania and amounts to approximately 148.9 million USD
(see Table 1.3) per year. Most wood fuel is sawmill waste. Forestries
have started selling logging waste and an increasing number of boiler
operators use it for fuel. Timber potential has nearly been exhausted;
but there is still a lot of wood/logging waste available

***[[eu, national support and tax relief]{.underline}]{.smallcaps}***

*Support for afforestation*. Seventy to eighty percent of all expenses
for afforestation are compensated. Beneficiaries: land owners. They
receive payment for planting, 5-year maintenance and protection payment,
and annual compensation for lost revenue. Payment for farmers: 177
USD/ha; payment for all others: 39.7 USD/ha.

All the measures listed in section 1.3 can be applied for RES from wood.

***[[major market players]{.underline}]{.smallcaps}***

There are many boiler units in Lithuania that use wood fuel. They are
scattered throughout the country. The main companies that supply and use
wood chips are listed in the table below.

  --------------- ------------------------------- -----------------------
  **Company**     **Contact**                     **Activities**

  UAB Vertma      Vertimų km., Anykščių raj.      Production of wood
                  Tel.: +370 610 01248, e-mail:   chips for biofuel.
                  <vytautas@vertma.lt>            

  UAB BioNovus    Konstitucijos pr. 7, LT-09308,  Purchase, production,
                  Vilnius. Tel.: +370 5 239 49    and supply of wood
                  30, e-mail: info@bionovus.lt    biofuel raw materials.

  AB Simega       Gedimino g. 85, LT-4880,        Wood waste boiler unit.
  (boiler units)  Kupiškis. Tel.: +370 459 35173. Power: 16.5 MW.

  AB Panevėžio    Boiler unit in Rokiškis. Tel.:  Wood waste boiler unit.
  Energija        +370 45 501059, e-mail:         Power: 7 MW.
                  <taucikas@pe.lt>.               

  AB Jonavos      Boiler units in Rukla. Tel.:    Wood waste boiler unit.
  Šilumos Tinklai +370 616 06562, e-mail:         Power: 2.8 MW.
                  <jst.centras@jonava.net>.       
  --------------- ------------------------------- -----------------------

Lithuanian heating supply companies plan to reconstruct several boiler
units to take wood fuel. Therefore, they will require a fair amount of
private investment. Boiler units are described in section 4.3 major
market players. (Support for reconstruction is described in section
1.3).

***[[market development prospects]{.underline}]{.smallcaps}***

Currently, forest logging waste has started to be used for boiler units,
but not many boilers are established. The available resource of this
waste is around 1 million cubic meters. In order to consume this in a
year, a total capacity of 300 MW boilers would be required.

***[[investment opportunities]{.underline}]{.smallcaps}***

In the short term (up to 2 years), opportunities exist in the
cultivation of straw and forests, the collection of wood waste or the
acquisition, renovation, and development of available boiler units.

In the medium term (up to 5 years), construction of a power plant or a
boiler unit might be possible. This will be a low cost operation.

summary

+---------------+------------------------------------------------------+
| ####### Curr  |                                                      |
| ent situation |                                                      |
+---------------+------------------------------------------------------+
| Produced      | 3,718,000 m^3^, this is 6 percent of the total       |
| amount in     | energy produced.                                     |
| 2007,         |                                                      |
| *thousand*    |                                                      |
+---------------+------------------------------------------------------+
| Price         | Wood fuel is sold at approx. 20 USD/m^3^.            |
+---------------+------------------------------------------------------+
| Obstacles     | Timber potential has nearly been exhausted due to    |
|               | the large furniture industry; only waste or straw is |
|               | available; collection of straw can be done in a      |
|               | short time.                                          |
+---------------+------------------------------------------------------+
| ####          |                                                      |
| ### Prospects |                                                      |
+---------------+------------------------------------------------------+
| Two years     | Due to limited supply, there may be an increase in   |
|               | the price of timber, and timber will be more         |
|               | difficult to obtain. Amounts of wood/logging waste   |
|               | and straw will increase. Investments into the        |
|               | construction of boiler units could therefore be      |
|               | possible.                                            |
+---------------+------------------------------------------------------+
| Five years    | No considerable increase in raw materials, but the   |
|               | price of energy may go up and the conditions for     |
|               | this kind of business will improve.                  |
+---------------+------------------------------------------------------+

For more information, please contact the Association of Lithuanian
Biofuel Producers and Suppliers LITBIOMA. Remigijus Lapinskas,
president. Tel.: +370 5 2394901. E-mail: <asociacija@biokuras.lt>

# geotHERMAL ENERGY {#geothermal-energy .1-headingas}

## 5.1. Current situation {#current-situation-5 .2-headingas}

Geothermal energy in Lithuania is produced from a water basin horizon at
a depth of up to 100 meters in Klaipėda and in Vilnius. Thermal output
is 0.114 MWt. Geothermal electric energy may be produced from hot dry
rock available only in Western Lithuania, at a depth of 2.5−4.5
kilometers. The temperature of the rock must be 100--145^o^C.

In 2007, 9GWh of geothermal energy was produced, which is around 0.013
percent of the total energy produced. According to the results provided
in Table 1.3, this could amount to 2.98 million USD.

One of the pioneering geothermal systems uses underground water as a
thermal source from the Žemaitija--Dainava Quarternary inter-morainic
water basin horizon. The depth of the wells are around 60 meters, the
temperature is +12^o^C, and water yield is 3.5−5 m^3^/h.

A sample project has been implemented in Klaipėda (on the Baltic coast),
for the centralized city heating supply. Four wells are operating (two
production and two injection). The temperature of the underground water
is +39^o^C. A heat pump is used to raise the temperature to the
requirements of the consumers.

In Vydmantai (close to the Baltic coast), two geothermal wells were
drilled. They were intended for the operation of the hydrogeothermal
complex using Cambrian water basin. The temperature of the underground
water was +73^o^C. Due to lack of financing, this project was not
completed, and the wells were sealed. If money becomes available, the
project could be completed. The Vydmantai-1 well is the deepest in
Lithuania, reaching 2.564 km.

Geothermal energy for heating private houses can be produced by
installing heat pumps. At a depth of 1−1.3 m, pipes are installed that
collect energy. Eighty percent of the required heat energy of households
could be produced in this way. The price for a system like this is
approximately 18,000 USD.

## 5.2. LeGAL ACTS {#legal-acts-2 .2-headingas}

See section 1.2. No additional legal acts exist.

## 5.3. EU, NATIONAL SUPPORT AND TAX RELIEF {#eu-national-support-and-tax-relief-2 .2-headingas}

No national assistance, tax relief, or support from the 2007--2013
European Union Structural Fund Programme is planned.

## 5.4. MAJOR MARKET PLAYERS {#major-market-players-2 .2-headingas}

There is only one direct market player that provides energy to half of
the city of Klaipėda; all others are equipment producers.

  ---------------- ------------------------------- -----------------------
  **Company**      **Contact**                     **Activities**

  UAB Geoterma     Lypkių g. 53, Klaipėda. Tel.:   Supplier of geothermal
                   +370 46 326163                  energy for the city of
                                                   Klaipėda heating
                                                   network.

  UAB Kauno        Rinkūnų km., Kauno raj. tel.:   Design and installation
  Hidrogeologija   +370 37 393353. E-mail:         of geothermal heating
                   <kaunas@hidrogeol.lt>           systems

  V. Pudžiuvis     Dariaus ir Girėno g. 14A,       Geothermal heating for
  service company  Tauragė. Tel.: +370 446 46962.  private houses
  "Kompresina"     E-mail: <info@kompresina.lt>    

  E. Gedminčius    Dubysos g. 62, Klaipėda. Tel.:  Geothermal heating for
  company          +370 46 397880. E-mail:         private house
  "Sanresta"       <info@sanresta.com>             
  ---------------- ------------------------------- -----------------------

##  {#section-5 .2-headingas}

## 5.5. MARKET DEVELOPMENT PROSPECTS {#market-development-prospects-2 .2-headingas}

There are many opportunities and ways to use geothermal energy in
Lithuania. Dr. Povilas Suveizdis and Dr. Vita Rasteniene from the
Institute of Geology and Geography maintain that an assessment about
producing electricity from geothermal energy is available, and
calculations have been made about satisfying the demand for energy of
the entire city of Klaipėda with geothermal energy.

##  {#section-6 .2-headingas}

## 5.6. INVESTMENT OPPORTUNITIES {#investment-opportunities-2 .2-headingas}

In the short term (up to 2 years), no fundamental changes in the market
are expected. The easiest investment opportunity is to establish a
company for the production and installation of geothermal systems for
heating private houses (or small residential communities).

In the medium term (up to 5 years), production of electricity from
geothermal resources should be considered by an investor or a boiler
station should be built to supply a city with heat.

As mentioned above, it is possible to invest in the deepest well in
Lithuania (which is in Vydmantai, close to the Baltic coast and is
currently not in operation). The community of Baisogala (central
Lithuania) has also made an assessment of the geological conditions of
the area and hopes to find investors for the implementation of a
geothermal project in their town.

## 5.7. sUMMARY {#summary-2 .2-headingas}

+------------+---------------------------------------------------------+
| #####      |                                                         |
| ## Current |                                                         |
|  situation |                                                         |
+------------+---------------------------------------------------------+
| Amount     | 9 GWh. This is 0.013 percent of all energy produced.    |
| produced,  |                                                         |
| in 2007.   |                                                         |
+------------+---------------------------------------------------------+
| Price      | No trade of geothermal energy takes place. Installation |
|            | of an individual system costs around 18,000 USD.        |
+------------+---------------------------------------------------------+
| Obstacles  | Environmental conditions are not very favorable to      |
|            | produce this energy. No understanding by businesses of  |
|            | the importance of geothermal energy and no funding from |
|            | EU Structural Funds is available.                       |
+------------+---------------------------------------------------------+
| #######    |                                                         |
|  Prospects |                                                         |
+------------+---------------------------------------------------------+
| Two years  | Investment into companies that install geothermal       |
|            | systems for private houses.                             |
+------------+---------------------------------------------------------+
| Five years | Possibility of producing electricity from this energy   |
|            | or supplying energy from thermal wells. Lobbying must   |
|            | be done in order to bring this issue to the attention   |
|            | of the ministries of the Republic of Lithuania.         |
+------------+---------------------------------------------------------+

For more information, please contact the Lithuanian Energy Institute
(<http://www.lei.lt/>)

Juozas Savickas, tel.: +370 37 401844

# WIND POWER {#wind-power .1-headingas}

## 6.1. Current situation {#current-situation-7 .2-headingas}

For the production of wind power, a primary assessment of wind power
resources was carried out by the Lithuanian Energy Institute by using
many years of meteorology station data. This assessment shows that the
use of wind power in Lithuania is possible and economically viable.

***[Picture 6.1]{.underline}***

######### Wind speed at a height of 10 meters above the surface (meters per second)

![](media/image6.jpeg){width="5.241666666666666in"
height="3.598611111111111in"}

*Source: Lithuanian Hydrometeorology Service*

The appropriate use of wind power in Lithuania is the production of
electricity (wind power plants). In 2007, 106.1 GWh of electric energy
in Lithuania was produced by wind turbines. This was only 0.08 percent
of the total energy produced (according to Table 1.3, the approximate
value would be 19.86 million USD). At the beginning of 2008, the total
capacity of 36 wind power plants in operation in Lithuania was 52.3 MW.
There are two wind power parks connected to the 110 kV transmission
lines of electric energy provider AB Lietuvos Energija. The Republic of
Lithuania participates in a power project aimed at creating proper
conditions for efficient development of wind power production in the
Baltic Sea region.

Following a decision of the Government of the Republic of Lithuania,
starting from January 1, 2009, the purchase price of electric energy
produced at wind power plants will be increased to 0.135 USD/kWh.

## 6.2. LeGAL ACTS {#legal-acts-3 .2-headingas}

See section 1.2. No additional legal acts that affect wind power
production exist.

## 6.3. EU, NATIONAL SUPPORT AND TAX RELIEF {#eu-national-support-and-tax-relief-3 .2-headingas}

Support is available on the basis of the EU Rural Development Program,
2007--2013 measures for construction of wind power plants. Support is
provided according to the second set of activities of "Modernization of
land holdings"---the construction of small capacity (up to 250 kW) wind
power plants. The power plant must be used for the production of
agricultural products or for personal needs. A small capacity wind power
plant costs around 361,400 USD, around 1,559 USD per one kW.

## 6.4. MAJOR MARKET PLAYERS {#major-market-players-3 .2-headingas}

Two large wind power parks operate in Lithuania (both in the coastal
area), the rest are individual wind turbines. The larger of the two is
UAB Vėjo Spektras Park with the capacity of 30 MW, and the
other---Laukžemės Wind Power Park---has a capacity of 16 MW. All other
power plants are linked to the 0.4--10 kV network of Vakarų Skirstomieji
Tinklai (VST, Western Distributions Network). Total capacity of these
other plants is under 5.5 MW.

  -------------- -------------------------- -----------------------------
  **Company**    **Contact**                **Activities**

  UAB Vėjo       Dvaro g. 4A, Kretinga.     Wind Power Park
  Spektras       Tel.: +370 687 81120       

  Laukžemės Wind Achemos grupė. Jonalaukio  Wind Power Park
  Power Park     km., Jonavos raj. tel.:    
                 +370 349 56237. E-mail:    
                 sekretoriatas@achema.com   
  -------------- -------------------------- -----------------------------

The Lithuanian Wind Energy Association (Baltijos pr. 123-61, Klaipėda.
Tel.: +370 46 350560) aims to create and develop full cycle wind energy
operations in Lithuania as an ecological and technologically advanced
area of the energy sector.

## 6.5. MARKET DEVELOPMENT PROSPECTS {#market-development-prospects-3 .2-headingas}

Lithuania\'s National Energy strategy plans that by 2010 total power of
wind plants will reach 200 MW and will amount to 2.5--3 percent of the
total energy produced due to obligations imposed by the EU to increase
the share of electricity produced from renewable energy resources to at
least 7 percent. Geographical zones are allocated for the producers
willing to build wind power plants as well as total output capacity for
the plant. According to Lithuanian law, all territories are divided into
six zones with an open tender procedure put forward for each of them;
wind power plants can be built just in these zones. All zones, where
wind power plants can be built, are in Klaipėda County near the Baltic
Sea.

Lithuania plans to implement wind power projects in its territorial
waters. Unfortunately, the coast line is only 99 km and is allocated for
various types of use. The Strategic Committee for Energy made a decision
that wind power facilities in the sea will be developed starting from
2010. Currently, a feasibility study is being prepared for this type of
activity and an environmental impact assessment is being carried out to
balance the interest of those engaged in sea transportation, fishing,
and wind power production.

##  {#section-7 .2-headingas}

## 6.6, INVESTMENT OPPORTUNITIES {#investment-opportunities-3 .2-headingas}

In the short term (up to 2 years), investment is expected in the
expansion of wind power parks in the coastal territory. The best option
is to build small wind plants of up to 250 kW that will give a more
rapid return on investment than the large parks, but the small plants
can supply energy only to a few land holdings.

In the medium term (up to 5 years), the construction of large wind power
parks should be considered with connection to high voltage transmission
lines of AB Lietuvos Energija. In addition, construction of more
powerful and efficient wind power plants in the Baltic Sea could be
considered because of new available technologies.

## 6.7. sUMMARY {#summary-3 .2-headingas}

+---------------+------------------------------------------------------+
| ####### Curr  |                                                      |
| ent situation |                                                      |
+---------------+------------------------------------------------------+
| Amount        | 106.1 GWh. This is 0.08 percent of the total energy  |
| produced      | produced.                                            |
+---------------+------------------------------------------------------+
| Price         | 0.135 USD/kWh from 01/01/2009                        |
+---------------+------------------------------------------------------+
| Obstacles     | Construction of wind turbines is confronted by the   |
|               | opposition of local residents who do not want have   |
|               | such facilities in the vicinity of their homes;      |
|               | limited territory where strong winds prevail (only   |
|               | 99 km).                                              |
+---------------+------------------------------------------------------+
| #####         |                                                      |
| ## Prospects  |                                                      |
+---------------+------------------------------------------------------+
| Two years     | Opportunities to build small wind plants of up to    |
|               | 250 kW.                                              |
+---------------+------------------------------------------------------+
| Five years    | Construction of large wind power parks or projects   |
|               | for sea wind power plants.                           |
+---------------+------------------------------------------------------+

For more information, please contact the Lithuanian Wind Energy
Association. Aleksandras Paulauskas

Tel.: +370 46 350560. E-mail: <info@lwea.eu>.