COMMISSION STAFF WORKING DOCUMENT Energy Union 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 Third Report on the State of the Energy Union
Date: 2017-11-23
Institutions: European Commission, Secretariat-General
Subjects: Lithuania, climate change policy, competitiveness, economic and social cohesion, energy cooperation, energy policy, innovation, investment, regional cooperation, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.11.2017 SWD(2017) 401 final  COMMISSION STAFF WORKING DOCUMENT Energy Union 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  Third Report on the State of the Energy Union  {COM(2017) 688 final} - {SWD(2017) 384 final} - {SWD(2017) 385 final} - {SWD(2017) 386 final} - {SWD(2017) 387 final} - {SWD(2017) 388 final} - {SWD(2017) 389 final} - {SWD(2017) 390 final} - {SWD(2017) 391 final} - {SWD(2017) 392 final} - {SWD(2017) 393 final} - {SWD(2017) 394 final} - {SWD(2017) 395 final} - {SWD(2017) 396 final} - {SWD(2017) 397 final} - {SWD(2017) 398 final} - {SWD(2017) 399 final} - {SWD(2017) 402 final} - {SWD(2017) 404 final} - {SWD(2017) 405 final} - {SWD(2017) 406 final} - {SWD(2017) 407 final} - {SWD(2017) 408 final} - {SWD(2017) 409 final} - {SWD(2017) 411 final} - {SWD(2017) 412 final} - {SWD(2017) 413 final} - {SWD(2017) 414 final}  
 
 
                              Energy Union – Lithuania 

 Lithuania 

                         Energy Union factsheet1 

1.  Macro-economic implications of energy activities 

Energy and transport are key sectors for the overall functioning of the economy as they provide an 
important input and service to the other sectors of the economy. Together the activity in these two 
sectors2  accounted  for  13.6%  of  the  total  value  added  of  Lithuania  in  2015,  twice  as  much  the  EU 
average. Similarly, their share in total employment3 was 8.3% in 2015, of which 7.5% in the transport 
sector and 0.8% in the energy sector. 

(source: Eurostat) 

According  to  EurObserv'ER,  in  2015,  the  share  of  direct  and  indirect  renewable  energy  related 
employment in total employment of the economy in Lithuania was at about 0.42%. The turnover of 
the  renewable  energy  industry  in  the  same  year  was  estimated  at  around  EUR  0.65  billion,  about 
more than half being attributed to the biomass (53.8% of total renewable turnover) followed by wind 
(30.7%) and biofuels industries (10%). 

1   The indicators used in this country factsheet largely build on indicators developed for the Commission Staff 
Working  Document  "Monitoring  progress  towards  the  Energy  Union  objectives  –  key  indicators" 
(SWD(2017)  32 
final)  https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-
indicators_en.pdf  

2   Gross value added and employment in NACE sectors D-Electricity, gas, steam and air conditioning supply 

and H-Transportation and storage 

3   National Accounts, Eurostat 

1 

02468101214162005201520052015LTEU28[%]Value added of the sector as % of total economy gross value added EnergyTransport13,0013,576,646,88Energy&Transport as % of total GVA:0123456789102005201520052015LTEU28[%]Employment in the sector as % of total employmentEnergyTransport7,508,295,575,46Energy&Transport as % of total employment: 
 
 
 
 
 
                                                            
 
                              Energy Union – Lithuania 

(source: EC based on Eurobserv'Er and Eurostat) 

The  decarbonisation  of  the  energy  and  transport  sectors  will  require  significant  investments  and 
economic  activity  beyond  the  remit  of  these  sectors  themselves.  The  energy  transition  implies  a 
structural  shift  in  economic  activity.  Energy-related  investment  and  jobs  will  in  part  migrate  from 
traditional  fossil  fuel  based  activities  towards  construction,  equipment  manufacturing  and  other 
services related to the deployment of low carbon and clean energy technologies. At the moment, the 
efforts  related  to  the  energy  transition  in  other  sectors  can  only  be  partially  quantified  and  are 
therefore not included. 

In terms of the energy trade, Lithuania is a net importer of gas, fossil fuels and electricity. The trade 
deficit in energy products has remained broadly stable compared to 2006 at about 3.5% of GDP but 
the composition has changed significantly. Net imports of oil have fallen, whereas net imports of gas 
and electricity have increased. 

(source: Eurostat) 

2 

-10,0-8,0-6,0-4,0-2,00,02,04,02006201520062015LTEU28[% of GDP]Trade balance of energy product and current  account balanceGasOilCoalElectricity-3,32-3,58-2,24-1,69Trade balance of all energy products [%GDP]: 
 
 
 
 
 
 
 
                              Energy Union – Lithuania 

2. Energy security, solidarity and trust 

2.1. Energy Mix 

In comparison to the average energy mix of primary products in the EU, Lithuania's energy mix has a 
much higher share of renewable energy (22.5% vs 13.0%) and a higher share of natural gas (32.9% vs 
22.0%). The share of oil (41.3% vs 34.4%) is slightly higher. Conversely, solid fuels have a much lower 
importance (3%  vs  16.2%).  Nuclear  energy  has  no  role in the energy  mix due  to  the closure of  the 
Ignalina nuclear power plant.  

 (source: Eurostat) 

2.2. Import dependency and security of supply  

78.4  %  of  Lithuania's  energy  consumption  comes  from  imports,  significantly  higher  than  the  EU 
average. This is mainly due to the dependence of natural gas, crude oil and NGL from Russia (82.6 % 
and  82.9  %  of  imports  from  non-EU  countries,  respectively).  For  natural  gas,  however,  the  LNG 
Terminal  in  Klaipeda,  which  was  put  in  operation  in  December  2014,  has  allowed  for  significant 
diversification of gas import.  

The  overall  import  dependency  of  Lithuania  increased  about  21.6  p.p.  between  2005  and  2015, 
whilst at the EU level, import dependency increased by 1.9 p.p. over the same period. 

 (source: Eurostat) 

3 

2015 EU28: Energy mix*wastenuclearrenewablesnatural gasoilsolid fuels0,8%13,6%13,0%22,0%34,4%16,2%1627,5MtoeGIC -total:GIC -energy mix*1626,2Mtoe2015 LT: Energy mix*wastenuclearrenewablesnatural gasoilsolid fuels0,4%0,0%22,5%32,9%41,3%3,0%6,9MtoeGIC -total:6,3MtoeGIC -energy mix*:*energy mix as share share in GIC-excluding electricity and derivedheat exchanges ,GIC=gross inland consumption54,0%78,4%69,1%99,7%88,4%99,5%64,1%90,1%0%40%80%120%EU28LTEU28LTEU28LTEU28LTtotal energycarriersnatural gascrude oil and NGLhard coalImport dependency200520151,9%21,7%12,0%-1,0%7,2%4,2%8,4%-9,9%absolute change 2005-2015 [pp]LTEU28LTEU28LTEU28RussiaRussiaRussiaRussiaRussiaRussia82,6%37,3%82,9%28,8%100,0%29,1%NorwayNorwayKazakhstanNorway Colombia17,4%32,8%9,2%12,4% 24,3% Algeria Nigeria United States 10,7% 8,3% 16,0%*share in total imports for the MS and in total non-EU imports for the EU282015: Top non-EU suppliers for main energy carriers* Natural gasCrude oil and NGLHard coal 
 
 
     
 
                              Energy Union – Lithuania 

The security of gas supply regulation requires that, if the single largest gas infrastructure fails in one 
Member State, the capacity of the remaining infrastructure is able to satisfy total gas demand during 
a day of exceptionally high gas demand. Lithuania complies with this rule. 

(source: gas coordination group) 

3. Internal market 

3.1. Interconnections and wholesale market functioning 

3.1.1. Electricity 

(source: EC services based on ENTSOE         source: EC services based on Eurostat      source: EC services based on Platts and 
European power exchanges) 

Lithuania is part of the Nordic and Baltic wholesale electricity market. The interconnection capacity 
for  electricity  in  the  Baltic  States  increased  to  around  10%  after  the  Estlink2  interconnection  with 
Finland entered into operation in 2014. Once the LitPol Link (connecting Lithuania and Poland) and 
NordBalt (connecting Lithuania and Sweden) began operating, the interconnection level4 rose to the 

4 The interconnectivity level is calculated as a ratio between import interconnection and net generation capacities 
of the country (i.e. the 2017 value is the ratio between simultaneous import interconnection capacity [GW] 
and net generating capacity [GW] in the country at 11 January 2017, 19:00 pm as resulted from ENTSO-E 
Winter Outlook  2016/2017).  For  the  three Baltic  states  it  is considered the  common  interconnection  level 
with the rest of the EU. 

4 

117,0%N-1 rule for gas2016threshold 100%LT 
 
 
 
 
 
                                                            
                              Energy Union – Lithuania 

current  23.7%  for  the  three  Baltic  States  together.  The  launch  of  the  NordBalt  interconnection 
remarkably increased the connectivity of the Baltic States with the Nordic power market. 

Better  interconnections  have  increased  competition  and  at  the  same  time  benefitted  not  only 
Lithuanian but also Latvian and Estonian electricity consumers.  

In 2015, the three Baltic States agreed on a common strategic goal: the synchronisation of their 
power systems with the European network. It is recognised as a self-standing objective of the 
reinforced BEMIP cooperation (Baltic Energy Market Interconnection Plan) as it would contribute to 
achieving a fully functioning and connected internal energy market and to increasing energy security 
in the electricity and gas sectors of the Baltic States. A dedicated BEMIP Working Group was set up 
supported by the Commission to work on the identification of the most cost-efficient synchronisation 
scenario that ensures system stability. The infrastructure element of the synchronisation of the Baltic 
States' electricity system with the European network has been included in the 3rd list of Projects of 
Common Interest. 

3.1.2. Gas 

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. The 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, thus ending Lithuania's single dependency on Russian gas. 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.  The  related  gas  pipeline  (Klaipeda-Kursenai)  was  commissioned  in 
November  2015.  Furthermore,  an  agreement  on  a  gas  interconnector  with  Poland  (GIPL)  was 
reached in September 2015, and works are advancing. 

The diversification of import sources via the new LNG terminal has had a positive impact on prices. 

The gas market is 100% liberalised and customers are free to choose among gas suppliers, while the 
concentration on the wholesale market remains very high. 

(source: ACER for the left graph and EC services based on on Platts, gas hubs, Eurostat for the right graph) 

5 

 
 
 
 
 
 
 
                              Energy Union – Lithuania 

3.2. Retail electricity and gas markets 

3.2.1. Electricity 

In  2016,  households'  electricity  prices  in  Lithuania  were  below  the  EU  average.  Between  2013  and 
2016 average band retail electricity prices for households decreased, but to a lesser extent than the 
wholesale prices. 

(source: ACER) 

   (source: Eurostat) 

(source: Eurostat) 

3.2.2. Gas 

In 2016,  household  gas  prices  were  slightly below  the EU  average. In the same  year,  the switching 
rate of gas household customers was inexistent (0 %), the same as for electricity. 

Natural  gas  smart  metering  is  planned  to  be  installed  in  Lithuania,  starting  with  a  pilot  project  for 
large customers.  

(source: ACER) 

  (source: Eurostat) 

(source: Eurostat) 

3.2.3. Market performance indicators 

According to the periodical survey by DG JUST, Lithuanian consumers are slightly more satisfied than 
the EU average about the services received on energy retail markets.  

6 

 
 
 
 
 
 
 
 
 
 
 
 
 
                              Energy Union – Lithuania 

(source: DG JUST survey) 

3.3. Energy affordability  

In  Lithuania,  climate  conditions  imply  significant  heating  needs  in  EU  comparison  and  the  share  of 
energy  in  total  household  expenditures  of  the  lowest  quintile  of  population  is  higher  than  the  EU 
average. It is estimated that around 39.4% of households report that they are enable to keep their 
homes adequately warm. This figure is higher than the EU average. 

 (source: ad-hoc data collection of DG ENER based on HBS with the support of Eurostat and national statistics) 

4. Energy efficiency and moderation of demand 

Primary  energy  consumption  has  been  steadily  decreasing  in  Lithuania  and  the  current  level  (5.8 
Mtoe in 2015) is already below the 2020 target for primary energy consumption (6.5 Mtoe). On the 
other hand, Lithuania's final energy consumption has been relatively stable and following a year-on-
year increase of 2% in 2015 stood at 4.9 Mtoe. This is mainly due to an increase of the final energy 
consumption  in  the  transport  sector  by  some  28%  during  this  period,  offsetting  savings  in  other 
sectors.  Therefore,  in  order  to  reach  its  2020  target  for  final  energy  consumption  (4.3  Mtoe), 
Lithuania must further increase its efforts in promoting energy efficiency. 

Although  primary  energy  intensity  decreased  over  the  2005-2015  period,  it  remains  above  EU 
average.  

7 

 
 
 
  
 
                              Energy Union – Lithuania 

(source: Eurostat) 

In 2015, the residential sector was the biggest energy consuming sector representing a 28% share in 
the  total  final  energy  consumption,  which  is  above  than  the  EU  average  (i.e.  25.4%).  The  energy 
consumption of Lithuania's transport sector was in 2015 at 37.6% in total final energy consumption, 
above the EU average of 33.1%. Finally, the energy consumption of the services sectors is below the 
EU average, with a share in total final energy consumption of 11.9%. 

(source: Eurostat) 

In terms of energy efficiency, some progress can be observed in the final energy intensity in industry 
and in the services sector as well as in the final consumption per m2 for the residential sector. 

8 

2015 EU28: Final energy consumptionwasteservicesagriculture/forestry/fishingresidentialtransportindustry0,4%13,6%2,3%25,4%33,1%25,3%1084,0Mtoe2015 LT: Final energy consumptionother (non-specified)servicesagriculture/forestry/fishingresidentialtransportindustry0,3%11,9%2,1%28,0%37,6%20,2%4,9Mtoe 
 
 
 
 
 
 
                              Energy Union – Lithuania 

(source: Eurostat)  

      (source: Eurostat) 

  (source: Odyssee database) 

Between  2005  and  2015,  the  final  energy  consumption  in  transport  recorded  an  average  annual 
increase of 2.9%, slightly higher than the 2.7% average annual increase of the GDP. 

(source:  Eurostat) 

        (source: Eurostat and DG MOVE pocketbook) 

The share of collective passengers land transport into total passengers' transport increased between 
2005 and 2015 indicating a higher use of public transport means. 

(source: Eurostat)  

One  of  the  key  directions  of  the  transport  policy  of  Lithuania  is  to  strengthen  the  interaction  of 
different  transport  modes.  In  the  field  of  carriage  of  goods,  much  attention  is  being  paid  to  the 
intermodal  transportation  processes  and  technologies.  The  Lithuanian  National  Transport 
Development Programme (2014-2022) emphasizes need for a sustainable development of Lithuanian 
transport  sector,  effective  management  of  state  resources  and  structural  funds  of  the  EU,  and 
enhancement of transport sector competitiveness. Main focuses are on increasing mobility of goods 
and  passengers,  improving  the  corridors  of  the  core  network  of  the  EU  Trans-European  Transport 
Networks as well as their connections with national and local transport networks, and increasing the 
efficiency of multimodal transport. 

9 

 
 
 
 
 
 
 
 
 
 
 
 
                              Energy Union – Lithuania 

Lithuania  is  facing  challenges  in meeting  the European  target for  transport  under the  Europe 2020 
strategy. The Lithuanian rail network remains among the least electrified rail networks in the EU. No 
progress has been observed over the period of 2010-2015 and only 6.9% of rail tracks are electrified. 
However, with the help of different financial and funding instruments significant progress is expected 
over the coming years. 

5. Decarbonisation of the economy 

5.1. GHG emissions 

In  2016,  GHG  emissions  in  Lithuania  were  about  60%  below  their  1990  levels,  and  therefore, 
significantly below the EU average of 23% emissions reduction. Lithuania is expected to meet its GHG 
target under the Effort Sharing Decision by a margin of 13 percentage points. 

(source: EC and EEA)   

However, according to 2016 EEA estimates, the GHG intensity of Lithuania's economy was above the 
EU average. Nevertheless, the GHG emissions per capita were well below the EU average.  

In 2015, the largest sectors in terms of GHG emissions were the transport sector (25.4 % of the total 
GHG  emissions)  followed  by  agriculture  (23.9  %),  industry  (22.8  %).  In  relative  terms,  the  GHG 
emissions  from  residential  and  commercial  sectors  were  well  below  the  EU  average  (i.e.  5.2%  vs 
12.2%).  

(source: EC and EEA)   

10 

 
 
 
 
 
                              Energy Union – Lithuania 

Preliminary accounts under the Kyoto Protocol for Lithuania show overall removals of 1.8 Mt CO2eq. 
as an annual average in the period 2013-2015. For comparison, the annual average of the EU-28 
accounted for removals of 119.0 Mt. CO2eq. It should be noted that in this preliminary simulated 
accounting exercise, removals from Forest Management were capped to 1.7 Mt CO2eq per year, due 
to significantly exceeding the limit of the difference between the reported sink and the accounting 
forest management reference level.  

The highest contributor to removals is Forest Management. Although smaller, removals by 
Afforestation have similar importance than emissions by Deforestation, expect for the year 2015 
where accounted emissions were nearly zero. Overall, there is an increasing trend in removals, 
mainly due to declining emissions by Deforestation. Afforestation shows also increasing removals 
over the course of the three-year period. 

Note: Forest Management credits are capped and presented as yearly averages when the total Forest 
Management credits of the considered period exceed the simulated cap over the same period. 

(source: EC and EEA)  

CO2 emissions in transport and alternative fuelled vehicles 

The  average  CO2  emissions  of  new  cars  in  Lithuania  were  in  2016  above  the  EU  average  but 
decreased substantially between 2005 and 2016. 

11 

 
 
 
 
 
 
  
                              Energy Union – Lithuania 

 (source: European Environment Agency) 

The  share  of  alternative  fuel  cars  is  increasing,  but  is  still  low.  By  2016  only  26  publicly  available 
charging points have been installed.  

(European Environment Agency)  

       (European Alternative Fuels Observatory) 

National Policy Frameworks under Directive 2014/94/EU on alternative fuels infrastructure have to 
establish targets, objective and measures for the development of the market of alternative fuels in 
the transport sector and the deployment of the relevant infrastructure. Lithuania has submitted its 
National Policy Framework as requested under article 3 of the Directive 2014/94/EU.  

A detailed assessment of the Lithuanian National Policy Framework in terms of its compliance with 
the  requirements  of  Directive  2014/94/EU  on  alternative  fuels  infrastructure,  its  contribution  to 
achievement  of  long-term  energy and  climate objectives  of  the  Union  and  coherence of  its  targets 
and objectives in terms of cross-border continuity has been published as part of the Communication 
on  Alternative  Fuels  Action  Plans  (COM(2017)652)  and   the  related  staff  working  document 
SWD(2017)365.    

5.2. Adaptation to climate change 

Lithuania  adopted  a  'Strategy  for  National  Climate  management  Policy  2013-2050'  in  2012.  An 
Interinstitutional Action Plan on the implementation of the goals and objectives of this Strategy was 
adopted  for  the  period  of  2013-2020.  The  following  priority  sectors  have  been  identified:  energy, 
transport,  industry,  agriculture,  landscape,  spatial  planning,  ecosystems  and  biodiversity,  fisheries 

12 

 
 
 
 
 
 
 
                              Energy Union – Lithuania 

and  aquaculture  sector,  forestry,  tourism,  groundwater  resources,  and  waste  management.  Every 
two years, the Government of the Republic of Lithuania prepares a report on the implementation of 
the Strategy. The outcomes of the monitoring, reporting and evaluation scheme will feed into further 
development of the Action Plan and the update of the Strategy. 

5.3. Taxes on energy and transport5 

The  overall  tax  burden  on  energy  and  transport  in  Lithuania  amounts  to  1.7%  of  GDP,  which  is 
considerably below the EU average and has remained at this level since 2007. This is explained by low 
revenue  from  taxation  of  heat  and  electricity  as  well  as  of  transport  vehicles.  The  tax  burden  on 
transport  fuels  is  in  contrast  above  the  EU  average.  There  is  no  CO2  component  in  the  taxation 
frameworks for energy products or vehicles in Lithuania.  

(source: Eurostat)  

5.4. Renewable energy  

Lithuania’s renewable energy share, expressed in percentage of gross final energy consumption, was 
25.8% in 2015, above its 2020 target of 23%. 

This  good  performance  was  driven  mostly  by  the  heating  sector,  where  the  share  of  renewables 
reached  46%,  as  opposed  to  a  39%  renewables  share  anticipated  for  2020  by  Lithuania's  National 
Renewable Energy Action Plan (NREAP). This reflects a strong growth during the last five years in the 
deployment  of  biomass  via  new  investment  in  district  heating and cogeneration,  also  helping  raise 
the  renewables  shares  in  electricity  production.  Investment  in  geothermal,  solar  thermal  and  heat 
pumps remained however below the intended development. The large share of renewable heating 
using  local  biomass  and  new  efficient,  mostly  CHP  production  facilities  helped  Lithuania  to  reduce 
heating costs to households and businesses in many localities, while at the same time reducing the 
dependence on imported natural gas from Russia, which it has been replacing. 

Lithuania  is  however  below  the  2020  target  of  10%  for  renewable  energy  share  in  transport,  with 
4.6% in 2015. Renewable energy in electricity generation is about 16%.  

5 There is no data on fossil fuel subsidies for Lithuania. 

13 

0123452007201420072014LTEU28[% GDP]Energy & Transport related taxes as % GDPHeat & ElectricityTransport VehiclesTransport Fuel1,681,652,282,37Total transport and electricity taxes [%GDP]: 
 
 
 
 
                                                            
                              Energy Union – Lithuania 

 (source: Eurostat-SHARES) 

(source: Eurostat-SHARES) 

Due to a consistent deployment of renewables since 2005, it is estimated that Lithuania avoided in 
2015 about 11.8% of the fossil fuel in gross inland consumption and about 9.4% of GHG emissions at 
national level6. 

 (source: EEA) 

5.5. Contribution of the Energy Union to better air quality 

Air  quality  in  Lithuania  continues  to  give  cause  for  concern.  For  the  year  2013,  the  European 
Environment  Agency  estimated  that  about  3,170  premature  deaths  were  attributable  to  fine 
particulate matter (PM2.5) concentrations7.  

6 Avoided GHG emissions mentioned here have a theoretical character as these contributions do not necessarily 
represent 'net GHG savings per se' nor are they based on life-cycle assessment or full carbon accounting. 

14 

 
 
 
 
 
 
                                                            
                              Energy Union – Lithuania 

For PM, Lithuania reported exceedances of the binding EU air quality standard8. For the year 2015, 
Lithuania  reported  exceedances  of  the  limit  value  for  PM10  in  1  out  of  the  3  air  quality  zones  in 
Lithuania as shown in the figure below. 

(source: EEA) 

The  health-related  external  costs  from  air  pollution  in  Lithuania  have  been  estimated  to  be  more 
than EUR 1 billion/year (income adjusted, 2010), which includes the intrinsic value of living a healthy 
life without premature death as well as the direct costs to the economy such as healthcare costs and 
lost working days due to sickness caused by air pollution9. 

The  Energy  Union  can  substantially  contribute  to  addressing  these  air  quality  problems  through 
measures reducing emissions of both GHG and air pollutants such as PM and nitrogen oxides (NOx) 
from major contributing sectors such as (road) transport, energy production, industry and residential 
heating (e.g. stoves and boilers) as shown in the figure below10. 

(Source: EEA. This table reflects only sources of primary PM2,5 emissions.) 

7  European  Environment  Agency,  2016,  Air  Quality  in  Europe  –  2016  Report,  table  10.2.  The  report  also 
includes details as regards the underpinning methodology for calculating premature deaths.    
8 Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality 
and cleaner air for Europe, OJ L 152, 11.6.2008, p.1-44 
9 See also the EU Environmental Implementation Review Country Report for Lithuania, SWD(2017)48 final of 
3.2.2017 
10 National emission data as reported by the Member States to the EEA (available on the EEA's Eionet/Central 
Data Repository), http://cdr.eionet.europa.eu/lt/eu/nec_revised 

15 

01234NO2 Annual limit valuePM2.5 Annual limit valuePM10 Daily limit value[number of zones]Air quality zones in exceedance of EU air quality standards number of zones exceedingnumber of zones not exceedingLT2,9%77,8%3,5%3,6%2,5%0,5%0,0%6,6%2,6%AgricultureCommercial, institutional and householdsEnergy production and distributionEnergy use in industryIndustrial processes and product useNon-road transportOtherRoad transportWastePM2.5 emissions by sectors -2015*LT17,6%7,5%9,4%8,0%1,4%8,1%0,0%47,9%0,1%NOx emisisons by sectors -2015* *NECD data submitted by MS to EEA at 28th May 2015 
 
 
 
 
 
 
                                                                                                                                                                                          
 
                              Energy Union – Lithuania 

6. Research, innovation and competitiveness  

6.1. Research and innovation policy 

The main energy research areas funded by the  Lithuanian government include the development of 
planning methods for the energy sector; the safety and reliability of power plants and their impact on 
the  environment;  efficient  use  of  energy;  and  renewable  energy  sources.  Priorities  for  future 
research  include  thermal  physics;  fluid  mechanics  and  metrology;  simulation  of  complex  systems; 
development  of  new  control  methods;  the  effects  of  ageing  on  construction  materials  used  in  the 
energy sector; development of new multifunction materials; and combustion and plasma processes 
to save fuel, reduce environmental pollution and improve incinerator performance. 

Lithuania  is  not  a  very  active  contributor  to  the  ongoing  work  of  the  Strategic  Energy  Technology 
(SET)  Plan.  It  only  participates  in  one  (out  of  fourteen)  temporary  working  groups  for  the 
implementation of the integrated SET Plan, the one dedicated to nuclear safety. 

Regarding the Horizon 2020 programme, Lithuania has so far received 0.1% of the EU contribution 
devoted to the 'secure, clean and efficient energy' part of the programme. As of September 2017, 27 
participations  from  Lithuanian  organisations  have  been  awarded  EUR  2.5  million  in  Horizon  2020 
energy projects. This includes a grant of almost EUR 0.5 million to UAB MET for its participation in 
project SUSPIRE (energy recovery from residual heat) and another of also almost EUR 0.5 million to 
Geotherma UAB for its participation in project DESTRESS (geothermal reservoirs). 

6.2. Investments and patents in the Energy Union R&I priorities  

In  2014,  public  (national)  investments  in  the  Energy  Union  R&I  priorities  reached  EUR  2.3  million 
having  decreased  by  12%  compared  to  2013.  The  largest  share  of  these  investments  (51%)  was 
attracted by the Sustainable Transport priority of the Energy Union, followed by the Efficient Systems 
and  Renewables  priorities  (19%  and  18%,  respectively).  In  the  period  2011-2014,  the  maximum 
annual  public  investment  was  EUR  4 million,  reported  in  2012.  In  2014,  the  most  recent  year  for 
which  data  from  most  Member  States  are  available,  public  investment  per  GDP  in  Lithuania  was 
lower than the EU average. 

Private investment in the Energy Union R&I priorities in 2013 was estimated at EUR 10 million (0.06% 
of the private R&I investment in Energy Union R&I priorities in the EU). The focus was on the Smart 
Systems priority, which attracted all the investment. 

In 2013, the most recent year for which complete patent11 statistics are available, 5 companies and 
research organisations based in Lithuania filed 6 patents in low-carbon energy technologies (0.1% of 
the EU total). The focus was on the Smart System (83%) and Efficient Systems (17%) priorities. 

In 2013, both private investments and patents in Energy Union R&I priorities were lower than the EU 
average  when  normalised  by  GDP  and  by  population  respectively.  In  the  period  2008-2013,  both 
private  R&I  investments  and  the  number  of  patents  in  Energy  Union  R&I  priorities  increased  on 

11   In  the  context  of  this  document,  the  term  'patent'  refers  to  patent  families,  rather  than  applications,  as  a 
measure  of  innovative  activity.  Patent  families  include  all documents  relevant to  a  distinct  invention (e.g. 
applications to multiple authorities), thus preventing multiple counting. A fraction of the family is allocated 
to each applicant and relevant technology. 

16 

 
 
 
 
                                                            
                              Energy Union – Lithuania 

average by 40% and 32% per year, showing higher rates of increase than the EU indicators (6% and 
15% respectively). 

Note: Data only available for the years 2011-2014 as collected by JRC SETIS. 

(Data  sources:  Public  investment  as  collected  by  JRC  SETIS  for  codes  relevant  to  Energy  Union  RIC  priorities. 
Patent data based on the European Patent Office PATSTAT database12. Private investment as estimated by JRC 
SETIS. Detailed methodology available from the JRC13.) 

6.3. Competitiveness 

In 2014, the real unit energy costs (RUEC)14 in Lithuania (13.3) were below those at the EU average 
(15.3).  

12 https://www.epo.org/searching-for-patents/business/patstat.html#tab1  
13 https://setis.ec.europa.eu/related-jrc-activities/jrc-setis-reports/monitoring-ri-low-carbon-energy-technologies  
14   This indicator measures the amount of money spent on energy sources needed to obtain one unit of value 

added. 

17 

 
 
 
 
 
 
                                                            
                              Energy Union – Lithuania 

(source:  ECFIN) 

(source: Eurostat and IEA) 

Regarding the competitiveness  in  wind  and  solar  energy,  Lithuania  has  slightly improved over  time 
but  is  performing  well  below  the  EU  average  in  both  sectors  in  terms  of  revealed  comparative 
advantage15. The relative  trade  balance16,  however,  shows  that Lithuania  is  a  net importer of  solar 
energy components and has a small surplus in terms of wind technologies and components.   

(source: UN comtrade) 

7. Regional and local cooperation 

Lithuania is part of the Baltic Energy Market Interconnection Plan (BEMIP). BEMIP’s main objectives 
are to develop an internal and regional energy market between the EU Member States in the Baltic 
Sea region and integrating it fully into the EU's energy markets thus increasing security of supplies. 
BEMIP  projects  have  been  part  of  the  European  Economic  Recovery  Plan  (EERP)  and  the  Trans-
European  Energy  Networks  Programme.  BEMIP  projects  have  also  been  funded  through  the  EU's 

15 The RCA index for product "i" is defined as follows: RCAi =

Xj,i
∑ Xj,i
i
Xw,i
∑ Xw,i
i

 where X is the value of exports, and j is 

the country and w is the reference group, the World economy. 2005 refers in the text to the indicator average 
over the 2000-2009 period, while 2015 represents the average over the 2010-2016 period. The same applies for 
the RTB indicator - see below. 
16 The RTB indicator for product "i" is defined as follows: 𝑅𝑇𝐵𝑖 =
exports and 𝑀𝑖 imports. 

 where 𝑋𝑖 is the value of product's "i" 

𝑋𝑖−𝑀𝑖
𝑋𝑖+𝑀𝑖

18 

0123456solarwindsolarwindLTEU28[-]Revealed Comparative Advantage -RCA200520150,060,05-0,070,22absolute change 2005 -2015:-1,0-0,50,00,51,0solarwindsolarwindLTEU28[-]Relative Trade Balance -RTB200520150,170,26-0,080,06absolute change 2005 -2015: 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union – Lithuania 

structural funds, including the European Regional Development Fund (ERDF) and the Cohesion Fund 
(CF). Many infrastructure projects are supported through CEF co-funding amounting to 534.3 million 
euro. In the framework of the societal challenge for secure, clean and efficient energy of the Horizon 
2020 programme, 16.9 million euro is allocated to participants from the Baltics to stimulate research 
and innovation in this field. 

The  Baltic  region  was  the  first  region  that  adopted  in  2012  a  joint  Risk  Assessment  of  the  risks 
affecting  the  security  of  gas  supply  in  the  region  under  the  Regulation  on  Security  of  Gas  Supply 
which is currently being updated17. The three Baltic countries and  Finland are  working together on 
the preparation of a joint Preventive Action Plans and an Emergency Plan for the region.  

 The EU macro-regional strategy for the Baltic Sea Region in which Lithuania takes part can be used 
as  a  basis  for  regional  cooperation  on  energy.  Lithuania  is  a  co-coordinator  of  the  policy  area 
'Energy'.  European  Territorial  Cooperation  –  'Interreg'  –  under  EU  cohesion  policy  also  provides 
further opportunities for cross-border, transnational and interregional cooperation, including in the 
Energy Union areas. 

Cities and urban areas have a key role in the energy and climate challenge. The Urban Agenda for the 
EU,  established  by  the  Pact  of  Amsterdam  in  May  2016,  better  involves  cities  in  the  design  and 
implementation of policies, including those related to the Energy Union. It is implemented through 
Partnerships, in which the Commission, Member States, cities and stakeholders work together on a 
number  of  important  areas,  including  on  Energy  Transition,  Urban  Mobility,  Air  Quality,  Climate 
Adaptation and Housing.  

By 2016, in the context of the Covenant of Mayors, the sustainable energy action plans delivered by 
14  Lithuanian  municipalities  had  been  assessed.  Overall,  these  municipalities  cover  more  than  1.4 
million  inhabitants.  All  together,  these  municipalities  committed  to  reduce  by  2020  the  GHG 
emissions by 47.5% (as compared to 1990 baseline).  

(source: JRC 2016. Notes: SEAP=sustainable energy action plan, GHG=greenhouse gas emissions) 

In  Lithuania,  by  September  2016,  no  cities  have  yet  committed  to  conduct  vulnerability  and  risk 
assessment  and  develop  and  implement  adaptation  plans  in  the  framework  of  the  Covenant  of 
Mayors for Climate and Energy. 

8. Cohesion policy and EU clean energy investments  

EU  cohesion  policy  makes  a  key  contribution  to  delivering  the  Energy  Union  objectives  on  the 
ground,  including  important  investment  possibilities  to  implement  energy  policy  objectives  in 
Lithuania  which  are  complemented  by  national  public  and  private  co-financing,  aiming  at  optimal 

17   Regulation (EU) No 994/2010 

19 

 
 
 
 
                                                            
                              Energy Union – Lithuania 

leverage.  It  also  ensures  integrated  territorial  solutions  to  energy  and  climate  challenges,  supports 
capacity building and provides technical assistance. 

is 

investing  some  EUR  977  million 

Over  2014-2020,  cohesion  policy 
in  energy  efficiency 
improvements  in  public  and  residential  buildings  and  in  enterprises,  as  well  as  in  in  high-efficiency 
cogeneration  and  district  heating,  renewable  energy  and  smart  energy  infrastructure  in  Lithuania. 
Cohesion policy is also investing significantly in R&I and in SME competitiveness in Lithuania, based 
on  the  national  strategy  for  smart  specialisation.  For  Lithuania,  the  strategy  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,  the  allocations  foreseen  for  investments  in  R&I  and  adoption  of  low-carbon  technologies  in 
Lithuania  are  not  specified,  but  should  become  available  in  line  with  the  evolving  content  of  the 
smart specialisation strategy. A further estimated EUR 626 million is invested in supporting the move 
towards an energy-efficient, decarbonised transport sector. 

(source: DG REGIO) 

These  investments  are  expected to  contribute  to  around 30,000  households  with improved energy 
consumption  classification,  a  decrease  of  around  60,000,000  kWh  per  year  of  primary  energy 
consumption  of  public  buildings,  around  470  MW  of  additional  capacity  of  renewable  energy 
production  and  10  000  additional  users  connected  to  smart  grids,  as  well  as  to  around  70  km  of 
reconstructed or upgraded railway lines and 20 km of new or improved inland waterways. Overall, 
the  EU  cohesion  policy  investments  in  Lithuania  over  2014-2020  are  expected  to  contribute  to  an 
estimated annual decrease of GHG emissions of around 680,000 tonnes of CO2eq. 

For  example,  the  Renovation  of  the  multi-apartment  buildings  programme  is  one  of  the  country's 
priority  projects  aimed  at  increasing  energy  efficiency  of  the  most  heat-intensive  multi-apartment 
buildings.  In  2014-2020,  around  EUR  314    million  from  the  European  Regional  Development  Fund 
(ERDF)  will  be  invested  through  several  financial  instruments  (loans  and  guarantees)  into  the 
modernisation of old inefficient multi-apartment buildings and building blocks. The expected results 

20 

02004006008001.0001.200Energy and Low-carbon R&ILow-carbon transport[Million EUR]LTERDF and Cohesion Funds allocation on energy, low-carbon transport and low-carbon R&I 2014-2020 977626Total alocation [mn EUR] 
 
 
 
                              Energy Union – Lithuania 

of  these  investments  include  30,000  families  living  in  renovated  homes  with  significantly  reduced 
energy consumption (by around 60% in average) and smaller energy bills. Until now, about 1000 loan 
agreements have been signed with the final recipients, 750 multi-apartment buildings (over 19,000 
households) have already been renovated, around 400 buildings are under renovation and another 
700  buildings are in the pipeline. Possibilities of upscaling the available funding by attracting funding 
from the European Fund for Strategic Investments (EFSI) are being actively explored. 

As another example, the South Baltic region is repositioning itself as a liquefied natural gas hub. The 
MarTech LNG project provided the crucial spark needed to unleash a range of investments in the LNG 
shipbuilding  and  bunkering  sectors.  As  a  result,  today  the  region  boasts  a  cross-border  cluster  of 
smart ports, shipbuilding yards, ship owners, technology firms and bunkering providers. During the 
course  of  the  project,  MarTech  LNG  trained  200  experts  in  using  the  latest  technology.  It  also 
ensured the project’s involvement in the leading LNG tradeshow, with project organisers successfully 
securing  the  involvement  of  the  private  sector.  The  contribution  from  the  European  Regional 
Development Fund (ERDF) amounted to EUR 1,088,532. 

Through  its  support  to  sustainable  transport  systems,  the  Connecting  Europe  Facility  (CEF)  also 
contributes  to  the  goals  of  the  Energy  Union.  Following  Lithuanian  participation  in  the  CEF  – 
Transport  2014-2015  Calls,  the  Lithuanian  action  portfolio  comprises  12  signed  grant  agreements, 
allocating EUR 368.8 million of actual CEF Transport Funding to Lithuanian beneficiaries (state-of-play 
February  2017)18.  The  transport  mode  which  receives  the  highest  share  of  funding  is  rail  (84  %  of 
actual funding). Lithuania has a considerable rail portfolio under the CEF programme. Apart from the 
involvement  in a multinational study for the Rail Freight Corridor “North Sea  – Baltic“, the focus is 
definitely on the Rail Baltic line, the most significant and strategic Global Project of the North Sea-
Baltic Corridor.  

Lithuania has also enhanced its interest and activity in maritime transport actions compared to the 
TEN-T  Programme.  It  seeks  actively  to  integrate  maritime  transport  better  in  the  logistics  chain  by 
upgrading the Klaipeda-Karlshamn line and by promoting the use of LNG fuels.19  

18 Note that European Economic Interest Groups and International Organisations are excluded from the analysis. 
19 Source: INEA 

21