COMMISSION STAFF WORKING DOCUMENT Country Factsheet Lithuania Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK State of the Energy Union
Date: 2015-11-18
Institutions: European Commission, Secretariat-General
Subjects: Lithuania, competitiveness, economic and social cohesion, electrical energy, energy policy, gas, innovation, reduction of gas emissions, regional cooperation, single market

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 18.11.2015  SWD(2015) 231 final   COMMISSION STAFF WORKING DOCUMENT Country Factsheet Lithuania Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK  State of the Energy Union {COM(2015) 572} {SWD(2015) 208 à 209} {SWD(2015) 217 à 230} {SWD(2015) 232 à 243}  
 
 
Towards an Energy Union  
           Lithuania 

Macroeconomic relevance of energy 

IMPORTANCE OF THE ENERGY SECTOR 

At 2.8% of total gross value added in 2012, the share of the energy sector in Lithuania is considerably 
higher  than  the  EU  average,  but  has  decreased  from  3.5%  in  2005.  In  parallel,  the  share  of 
employment in the energy sector in total employment has decreased importantly (from 1.4% to 1%) 
but is still nearly twice as high as the EU average (0.6% in 2012). 

Source: EUROSTAT – National Accounts 

According to EurObserv'ER, in 2013, the share 
indirect  renewable  energy 
of  direct  and 
related  employment  in  total  employment  of 
the economy in Lithuania was at about 0.41%, 
below the EU average of 0.53%. 

Source:  European  Commission,  based  on  EurObserv'ER  and 
EUROSTAT 

 TRADE BALANCE OF ENERGY PRODUCTS 

The energy trade balance of Lithuania is significantly negative and amounted to 6% of GDP in 2014. 
The  Lithuanian  deficit  is  driven  almost  entirely  by  gas  and  oil  import.  Despite  high  dependence  on 
foreign energy products, Lithuania has greatly reduced its current account deficit over the past few 
years.  It  went  from  a  deficit  of  10%  of  GDP  in  2006  to  a  balanced  current  account  in  2014.  The 
reduction  was  largely  due  to  non-energy  components,  with  energy  trade  deficit  doubling  to  6%  of 
GDP during the same period. 

0.01.02.03.04.020052012LTEU27Value added of energy sector% of grossvalue added (total economy)0.00.40.81.21.620052012LTEU27Employment in energy sector% of total employment 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Lithuania 

Source: EUROSTAT 
Note: Current account balance for EU28 from European Commission (AMECO) 

1. Energy Security, solidarity and trust 

ENERGY MIX 

The energy mix of Lithuania differs from the one of the EU-28, with the notable difference of a much 
higher  share  of  gases  and  much  lower  of  solid  fuels.  Compared  to  1995,  the  share  of  nuclear  has 
decreased from 36% to 0%, due to the closure of the Ignalina nuclear power plant. Consequently, all 
other energy sources increased in the share of gross inland energy consumption. The share of solid 
fuels  and  petroleum  and  products  increased  (from  2%  to  5%  and  from  35%  to  40%  respectively). 
However,  it  is  the  share  of  renewable  energy  which  experiences  the  most  striking  change,  with  a 
sharp increase by 18 percentage points. The share of gases increased from 23% to 35% of the energy 
mix. 

Gross inland energy consumption in 2013  

Source: European Commission, based on EUROSTAT  

IMPORT DEPENDENCY 

Import  dependency1 in  Lithuania  is  higher  than  for  the  EU  as  a  whole.  Import  dependency  was  in 
2013 100% for gas and at very high levels for petroleum products.  However, after the putting into 
operation  of  the  LNG  Terminal  in  Klaipeda,  Lithuania  diversified  its  gas  imports,  although  it  still 
imports most of its gas from Russia2. In addition, the country's dependency for solid fuels increased 
in  the  last  years.  Supply  concentration  of  other  fuel  sources  is  also  very  high,  making  Lithuania 

1   Note: A dependency rate in excess of 100% indicates that energy products have been stocked. 
2  

Top non-EU gas suppliers table is based on EUROSTAT data. The share of imports from non-EU countries is calculated 
as the ratio between volumes of imports from that specific non-EU supplier and total imports  (from EU and non-EU 
countries). 

2 

-12-10-8-6-4-202LTEU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2006 -12-10-8-6-4-202LTEU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2014  
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Lithuania 

vulnerable  to  external  supply  shocks.  This  also  translates  into  a  very  large  energy  trade  deficit,  as 
expressed in percentage of GDP. Lithuania remains highly dependent on electricity imports (64% in 
2013), mainly (44 %) from the Russian Federation. In order  to  address this issue, Lithuania is being 
considering  a  possibility  to  build  a  regional  nuclear  power  plant  together  with  other  regional 
partners. 

Source: European Commission, based on EUROSTAT  

2. A fully-integrated internal energy market 

INTERCONNECTIONS 

increased  to  around  10%.  Lithuania 

The interconnection capacity for electricity was 4% in 2014 for the three 
Baltic States – Estonia, Latvia and Lithuania – taken as one entity. With 
the  start  of  operation  of  Estlink2,  their  level  of  interconnection 
is  not  directly 
substantially 
connected to the European electricity grid3 and therefore, answering to 
the Commission's priority of ending the Baltic isolation, several projects 
were  listed  as  key  infrastructure  projects  in  the  European  Energy 
Security Strategy (EESS). Interconnectors with Sweden and Poland, to be 
completed in 2015, will foster security  of supply and wholesale market 
functioning. The three Baltic States agreed in the first quarter of 2015 on 
a  common  strategic  goal:  de-synchronisation  from  IPS/UPS  and  the 
synchronisation  of  their  power  systems  with  the  Continental  European 
Network.  The  project  of  synchronisation 
included  as  a  key 
infrastructure project in the European Energy Security Strategy, as well 
as is highlighted as one of the key energy priority areas in Baltic Energy 
Market Interconnection Plan (BEMIP).  

is 

The  LNG  terminal  in  Klaipeda,  finished  at  the  end  of  2014,  created 
diversification  of  gas  supply.  However,  to  end  the  Baltic  States‘  (and 
Finland‘s)  physical  isolation  from  the  European  gas  networks,  the  new 
bi-directional  gas  pipeline  between  Poland  and  Lithuania  (GIPL)  is  an 
essential  project  mentioned  also  in  the  European  Energy  Security 

Source: European Commission 
based on ENTSO-E scenario 
outlook and adequacy forecast 
2014 
to  2030 
Note:  Reference 
target  is  based  on  October 
2014 
Council 
European 
conclusions  stating  that  "the 
Commission  will  also  report 
regularly  to  the  European 
Council  with  the  objective  of 
arriving  at  a  15%  target  by 
2030" 

3  

The three Baltic States are interconnected with the European electricity network only via Finland at the moment. 

3 

Top non-EU gas suppliers in 2013 (% in total imports)LithuaniaEuropean Union country[%]country[%]Russia100.0Russia39.0Norway29.5Algeria9.7Qatar6.757%78%92%93%101%100%52%53%82%87%57%65%200520132005201320052013All fuelsPetroleum andproductsNatural gasLTEU28Import dependency 2013 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Lithuania 

Strategy.  It  will  be  the  first  gas  interconnector  of  the  Eastern-Baltic 
region  with  the  Continental  European  gas  networks.  The  financing 
agreement of the gas interconnection, signed on 15 October 2015, paves 
the way for its successful implementation by the end of 2019. 

ELECTRICITY AND GAS MARKETS 

Market concentration index for power generation (left) 
and gas supply (right) (2013) (Herfindahl index – 10000 
means monopoly) 

Sources:ESTAT and European Commission Calculations 

Sources: European Commission based on ESTAT, CEER and Platts 
Power Vision 

Concentration on power generation markets is slightly above EU average. The closure of the Ignalina 
nuclear power plant in 2009 created opportunities for new suppliers on the market with the bulk of 
the shortfall being replaced by imports from Russia. On the upstream gas market, until the opening 
of the Klaipėda LNG terminal and  the signing of an  LNG supply contract with  Statoil, Gazprom was 
the  only  gas  supplier  to  Lithuania  and  the  whole  Eastern-Baltic  region.  Klaipėda  LNG  terminal 
significantly  enhanced  security  of  natural  gas  supply  for  all  consumers  in  the  Baltic  States  by 
providing  an  alternative  gas  supply  source  on  the  basis  of  full  Third  Party  Access.  Klaipėda  LNG 
terminal regasification capacities of 3.8 bcm/y (10.3 mcm/d) are sufficient to cover around 90% of all 
current demand of the Baltic States. 
Electricity and gas wholesale prices are above EU average. Regarding gas prices, the diversification of 
import sources via the new LNG terminal has positive impacts on prices.  
The gas market is 100% liberalised and customers are free to choose among gas suppliers, however 
during  2013  only  modest  interest  in  switching  was  observed.  Changing  electricity  supplier  in 
Lithuania was permitted but during 2013 no switches were made. According to an EU-wide survey4, 
consumers' satisfaction regarding both the electricity and the gas retail markets is well above the EU 
average. 
Natural  gas  smart  metering  is  planned  to  be  installed  in  Lithuania,  starting  with  a  pilot  project  for 
large customers. In parallel, in the electricity sector a pilot project of smart meters is initiated too.  

CONTRIBUTION OF ENERGY TO CONSUMER PRICE EVOLUTION 

Inflation  of  consumer  prices  has  decreased  importantly  in  Lithuania  compared  to  the  pre-crisis 
period. Past volatility in inflation was largely due to non-energy items, although energy played a 
significant role in 2010-11. As in the rest of the Euro area, oil prices have declined in 2014, driving 
overall inflation at historically low levels. 

4    10th Consumer Markets Scoreboard (June 2014),   
http://ec.europa.eu/consumers/consumer_evidence/consumer_scoreboards/10_edition/index_en.htm 

4 

 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Lithuania 

Source: DG ECFIN based on Eurostat 

VULNERABLE CONSUMERS 

According  to  a  EUROSTAT  survey,  the  three 
proxy indicators related to fuel poverty indicate 
an  acute  issue  in  Lithuania,  in  particular  as 
regards  the  ability  to  keep  home  adequately 
warm.  However,  Lithuania  has  put  in  place  an 
adequate 
the 
framework 
legislative 
protection of vulnerable consumers. 

for 

 Source: European Commission, based on on EUROSTAT SILC survey 

3. Energy Efficiency and moderation of energy demand 

ENERGY EFFICIENCY TARGET 2020  
(6.5 Mtoe primary energy and 4.2 Mtoe final energy) 

in 

final 

expressed 

Lithuania’s  2020  energy  efficiency  target  is  6.49 
Mtoe  expressed  in  primary  energy  consumption 
(4.28  Mtoe 
energy 
consumption).  When  comparing  the  trend  of 
the  GDP 
primary  energy  consumption  with 
development over the past decades, it can be seen 
that  there  is  evidence  of  a  decoupling  of  both. 
Even 
if  Lithuania’s  current  primary  energy 
consumption (5.7 Mtoe in 2013) is below its 2020 
target, 
its  current  efforts 
regarding  energy  efficiency  to  keep  the  primary 
energy consumption at this level or increase it only 
slightly so that it will reach its 2020 target even if 
the  economy  continues  to  grow  in  the  next  five 
years.  

it  could  continue 

 Source:  European  Commission,  based  on  EUROSTAT  and  on 
national energy efficiency targets as declared by the MS under the 

EED 

ENERGY INTENSITY 

Overall energy efficiency indicators and trends are still above EU averages. Energy intensity is higher 
in  the  overall  economy  and  the  major  sectors,  i.e.  industry,  buildings  and  transport.  However, 
primary energy intensity in Lithuania has significantly decreased since 2005, although it remains well 
above  the  EU  average.  A  high  energy  intensity  reduction  is  also  recorded  in  the  industrial  sector, 
although here again it remains above EU average. 

5 

-505101520052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsLithuania : Price evolution & the contribution of energy prices-10123420052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsEA : Price evolution & the contribution of energy prices 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Lithuania 

Primary energy intensity of the economy   

Final energy intensity in industry

Source: European Commission based on  EUROSTAT 

Source: European Commission based on  EUROSTAT and European 
Commission/AMECO 

Specific energy consumption by households is above EU average and decreased at a slightly slower 
pace than the EU average. This could mean that there remains untapped potential to improve energy 
efificiency  in  the  residential  sector.  The  indicator  used  below  shows  that  the  energy  intensity  of 
transport is below EU average. This is however difficult to interpret as Lithuania has one of the most 
inefficient  car fleet in Europe. The average age of  passenger cars is around 14 to 15 years  and  the 
emission levels of newly registered cars are among the highest in the EU (140 g CO2/km against an EU 
average of 127 g CO2/km). There is no car taxation in place and taxes on transport fuel are among the 
lowest in the EU. 

Final  energy  consumption  per  m2 
residential sector, climate corrected 

in 

Specific energy intensity for passenger cars and freight 
transport5  

Source: European Commission based on  Odyssee 

database 

Source:  PRIMES  model  background  data  and  estimations  based  on  EU 
Commission and EU MS inputs   

EU  legislation  sets  mandatory  CO2  emission  reduction  targets  for  new  cars  and  vans.  By  2021,  the 
fleet average to be achieved by all new cars is 95 grams of CO2 per kilometre. For new vans, the fleet 
average is set at 147 g/km by 2020. 

5  

Statistics  on  energy  demand  for  passengers  and  freight  transport  are  not  available  and  model  estimates  have  been 
used instead. These issues should be borne in mind when comparing energy intensity in freight or passenger transport 
between Member States, which should be regarded as merely indicative. 

6 

 
 
 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Lithuania 

Source: European Environmental Agency. 2014 values are provisional. 2013 EU average refers to EU-27 

Regarding transport performance, in EU-28 the inland freight modal shares are 71% by road, 17% by 
rail, 7% by inland waterways and 5% by pipelines. The respective inland passenger modal shares are 
82% by private car, 9% by buses and coaches, 7% by railways and 2% by tram and metro. In Lithuania, 
as in the other Baltic States, rail is widely used in freight transport. However, passenger transport is 
mostly performed by road. 

Modal shares Lithuania 

Source: Eurostat and EU transport in figures 2015. Data refers to 2013. Modal shares based on tonne-kilometres for freight sector and 
passenger-kilometres for passenger sector, freight data based on activity within country territory. Estimates are made when data is missing. 

4. Decarbonisation of the economy 

NON-ETS GHG EMISSION REDUCTION TARGET 2020  
(+15% by 2020 as compared to 2005 in the non-ETS sector) 

Lithuania has decreased its emissions by 5% 
between  2005  and  2014  (based  on  2014 
approximated  data).  According  to  its  2015 
projections,  Lithuania  is  on  track  to  reach 
its  2020  target,  with  a  18%  margin  as 
compared to 2005.  

Non-ETS Emissions 
(vs. 2005) 

Projections with 
existing measures 
2020 

Proxy 2014 

Projections/proxy 

target 

-3% 

-5% 

+15% 

-1% 

Source:  European  Commission    based  on  EEA.  Based  on  preliminary 
inventory data. 

ESD (Effort Sharing Decision) emissions are the emissions from sectors not 

covered by the EU ETS. 

RENEWABLE ENERGY SHARE TARGET 2020 (23%) 

7 

 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Lithuania 

In  2013,  Lithuania  had  a  renewable  energy 
share  of  23%.  This  corresponds  to  its  2020 
target. 

Source: European Commission based on  EUROSTAT 

GREENHOUSE GAS EMISSION  INDICATORS 

 

 

 

In Lithuania the Agriculture sector is the largest in terms of share of total emissions, with a 
value that is twice the EU average  
Lithuania  has  one  of  the  highest  carbon  intensity  of  the  economy  in  the  EU,  about  80% 
higher than EU average. 
In  2014,  Lithuania  reinvested  all  the  revenues  from  the  auctioning  of  ETS  allowances 
(EUR 17.3 million) to improve energy efficiency of buildings and for installation of renewable 
energy resources in public and private buildings. 

Largest Sectors of GHG 
Emissions in 2012 (*) 

Energy/power industry  

Transport 

Industry  

Agriculture (incl. forestry & 
fishery) 

Residential & Commercial 

Waste & others 

Lithuania 

EU 
Average 

22% 

21% 

23% 

24% 

6% 

4% 

33% 

20% 

19% 

12% 

13% 

3% 

GHG Emissions 

Lithuania 

EU 

EU ETS auctioning  
revenues in 2014 (EUR 
millions) 

Share of ETS emissions 
in 2013 

GHG emissions/capita 
in 2013 
(tCO2equivalent) 
Carbon intensity of the 
economy in 2013 
(tCO2equivalent/EUR 
millions 

17,3 

3205 

38% 

42% 

6.6 

8.5 

618 

328 

Source: European Commission  based on EEA 
(*)Sectoral breakdown for 2013 data not available 

ENERGY & TRANSPORT TAXATION 

Energy and transport related taxes as a share of GDP are below the EU-average, largely due to lower 
receipts  from  taxation  of  vehicles  and  of  heat  and  electricity.  The  overall  tax  burden  has  declined 
since 2005. 

8 

 
 
 
 
 
 
 
Towards an Energy Union - Lithuania 

Source: Eurostat 

5. Research, innovation and competitiveness 

RESEARCH AND INNOVATION 

Lithuania is below the EU average, above the US and below Japan and South Korea in terms of public 
support share allocated to research and innovation in the field of energy and environment. In terms 
of intensity of low-carbon technologies patents, Lithuania is much behind the EU average and main 
worldwide partners. 

Source: European Commission based on  EUROSTAT   

COMPETITIVENESS 

Real unit energy costs (% of value added) 

The  real  unit  energy  costs6 are  more  than  three 
times  higher  in  Lithuania  than  in  the  EU.  This 
reflects  that  the  energy  intensity7 of  Lithuania's 
manufacturing  sector  is  higher  than  both  the 
EU's  and  in  the  US,  and  that  real  energy  prices 
have  increased  in  Lithuania  over  the  past  ten 
years.  
Being in line with the EU average, electricity and 
gas prices for industrial consumers remain higher 
than  in  the  US  and  other  major  non-EU  trading 
partners. 

6  
7  

This indicator measures the amount of money spent on energy sources needed to obtain one unit of value added. 
The  energy  intensity  presented  here  is  derived  from  Use  Tables  of  WIOD,  see  "Energy  Economic  Developments  in 
Europe SWD(2014)19". 

9 

0.01.02.03.0LTEU-28Energy & Transport related taxes % of GDP, 2005TransportvehiclesTransport fuelHeat &Electricity0.01.02.03.0LTEU-28Energy & Transport related taxes % of GDP, 2012TransportvehiclesTransport fuelHeat &Electricity 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Lithuania 

Source: European Commission 

Source: European Commission based on EUROSTAT and IEA  

10 

35.39.58.248.213.28.848.213.78.00102030405060LTEU27US200020092011 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Lithuania 

6. Post-2020 Energy and Climate policy Strategy  

COMPREHENSIVE MEDIUM TO LONG-TERM STRATEGY (post-2020) 
FOR CLIMATE AND ENERGY 

 

 

In  2012,  Lithuania  adopted  a  National  Energy  Independence  Strategy,  which  contains 
strategic initiatives until 2020, and lays down guidelines for the development of the energy 
sector until 2030 and 2050. By 2050, Lithuania aims to be independent from fossil fuel and to 
produce  its  energy  from  nuclear  and  renewable  energy  sources  only.  A  revision  of  the 
Strategy is planned. 
In 2012,  Lithuania  adopted  a  Strategy  for  the National  Climate  Change  Management Policy 
for the period 2013 - 2050 as the country's low- carbon development strategy. The Strategy, 
covering adaptation and mitigation policies, sets binding targets for 2020, and sets indicative 
goals and objectives for the medium (2030-2040) and long run (2050). An Inter-institutional 
Action  Plan  and  biennial  reports  to  Parliament  have  been  established  to  ensure  the  timely 
implementation of the Strategy, for which an update is planned after 2019.  

NATIONAL TARGETS, especially for 2030 

Objective, 2030-2050 

GHG reduction  

Targets 

Yes, 
indicative 

Renewable energy share 

Energy Efficiency / savings 

(for 

No 
2030); 
Indicative 
(for 2050) 
No 
2030); 
Indicative 
(long term) 

(for 

indicative 

Comments 
The Climate Strategy sets the following indicative targets: 
to contribute to the implementation of the proposed EU 
targets  –  GHG  emission 
medium-term 
reduction  by  40%  reduction  by  2030,  60%  reduction  by 
2040  and  80%  reduction  by  2050  as  the  long-term 
perspective, by comparison with the level in 1990. 
No  specific  2030  target.  Indicative  targets  outlined  for 
2050:  40-100%  renewables  in  the  energy  mix;  0-30% 
nuclear energy, and 0-30% fossil fuel with carbon capture 
storage 
No specific target for 2030; however, the Strategy for the 
National  Climate  Change  Management  Policy  includes  a 
long-term 
for  a  1.5-2%  annual 
improvement  in  energy  efficiency,  while  the  National 
Energy  Independence  Strategy  aims  at  a  1.3%  annual 
improvement at least 

indicative 

target 

7. Regional cooperation 

EU  Member  States  cooperation  in  the  energy  sector  in  the  Baltic  Sea  region  has  brought  many 
benefits  for  the  participating  countries.  The  work  and  achievements  within  the  framework  of  the 
Baltic  Energy  Market  Interconnection  Plan  (BEMIP)  agreed  in  June  2009  and  with  subsequent 
amendments  in  2011  and  2013  respectively  proved  that  enhanced  regional  cooperation  can  be  a 
catalyst for positive developments both in energy infrastructure projects or market related aspects. 
The  MoU  on  reinforced  BEMIP  was  signed  on  8  June  2015  with  the  overall  goal  to  ensure  further 
market and system integration of the Baltic States into European Continental network and ensure its 
full market functioning also strengthening the organisational structure of the BEMIP. The new MoU 
and Action Plan also foresees regional  cooperation in new energy policy areas, including electricity 
and gas markets, security of supply, power generation, renewable energy and energy efficiency. 

Regional  cooperation  on  infrastructure  development  is  necessary  to  optimise  the  identification  of 
regional infrastructure priorities and to coordinate cross-border investments. Lithuania is a member 

11 

 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Lithuania 

of  two  electricity  and  gas  Regional  Groups  which  have  been  established  under  the  trans-European 
energy  networks  (TEN-E)  Regulation,  i.e.  Baltic  Energy  Market  Interconnection  Plan  in  electricity 
(BEMIP Electricity) and Baltic Energy Market Interconnection Plan in gas (BEMIP Gas).  

Additionally,  Regional  Gas  Market  Coordination  Group  was  established  on  February  12,  2015  to 
facilitate creation of the effectively functioning regional gas market, consisting of the representatives 
of  the  ministries  responsible  for  energy  policy,  the  national  regulatory  authorities  of  the  energy 
sector and the operators of the key gas infrastructure in the Baltic States and Finland.  

8. Cohesion Policy Contribution 

The EU Cohesion policy provides for important investment possibilities to implement energy policy 
objectives  in  Lithuania  which  will  be  complemented  by  national  public  and  private  co-financing, 
aiming at optimal leverage. It also ensures integrated territorial solutions to challenges by supporting 
capacity building and territorial cooperation, including the Baltic Sea Region macro-regional strategy 
in which Lithuania takes part. 

Internal  Energy  Market:  Over  2014-2020,  EU  Cohesion  Policy  will  invest  some  EUR  154  million  in 
smart transmission systems, as well as some EUR 21 million in smart electricity distribution grids in 
Lithuania.  These  investments  are  expected  to  contribute  to  around  10  000  additional  users 
connected to smart grids. 

Energy  efficiency:  Over  2014-2020,  EU  Cohesion  Policy  will  invest  some  EUR  540  million  in  energy 
efficiency  improvements  in  public  and  residential  buildings  and  in  enterprises,  as  well  as  in  high-
efficiency cogeneration and district heating in Lithuania. A further estimated EUR 626 million will be 
invested in supporting the move towards an energy-efficient, decarbonised transport sector. These 
investments  are  expected  to  contribute  to  around  30  000  households  with  improved  energy 
consumption classification and a decrease of around 60 000 000 kWh per year of decreased primary 
energy  consumption  of  public  buildings,  as  well  as  to  around  70  km  of  reconstructed  or  upgraded 
railway lines, and 20 km of new or improved inland waterways.  

Decarbonisation:  Overall,  the  EU  Cohesion  Policy  investments  in  Lithuania  over  2014-2020  are 
expected to contribute to an estimated annual decrease of GHG of around 680 000 tonnes of CO2eq. 
Over  2014-2020,  EU  Cohesion  Policy  will  invest  some  EUR  330  million  in  renewable  energy  in 
Lithuania. These investments are expected to contribute to around 760 MW of additional capacity of 
renewable energy production. 

Research,  Innovation  and  Competitiveness:  Over  2014-2020,  EU  Cohesion  Policy  will  invest 
significantly  in  R&I  and  in  SME  competitiveness  in  Lithuania.  This  will  be  based  on  the  national 
strategy  for  smart  specialisation.  For  Lithuania,  the  Strategy8 includes  a  focus  on  energy  and  a 
sustainable  environment  priorities,  namely  (1)  smart  systems  for  energy  efficiency,  diagnostic, 
monitoring,  metering  and  management  of  generators,  grids  and  customers,  (2)  energy  and  fuel 
production using biomass/waste and waste treatment, storage and disposal, (3) technology for the 
development  and  use  of  smart  low-energy  buildings  –  digital  construction  and  (4)  solar  energy 
equipment  and  technologies  for  its  use  for  the  production  of  electricity,  heat  and  cooling.  At  this 
stage,  at  least  EUR  103  million  is  foreseen  for  investments  in  R&I  and  adoption  of  low-carbon 
technologies  in  Lithuania,  but  this  might  increase  further  in  line  with  the  evolving  content  of  the 
smart specialisation strategy. 

8  

http://www.ukmin.lt/web/en/innovations/Smart_Specialisation. 

12