The European Commission (EC) has approved a €385m scheme to support electricity production from renewable energy sources in Lithuania.
On 1 May 2019 Lithuania will introduce the new scheme to support renewable energy installations to help the country reach its national target share 38% renewables by 2025.
The scheme will be applicable until 1 July 2025 or until the 38% target is reached.
The measure, under state aid rules, will contribute to the EU environmental goals without distorting competition.
Commissioner Margrethe Vestager, in charge of competition policy, said: “The scheme will contribute to Lithuania’s transition to low carbon and environmentally sustainable energy supply, in line with the EU environmental objectives and our state aid rules.”
The installations benefitting from the scheme will receive support in the form of a premium, which will be set through a competitive bidding process for all types of installations, irrespective of the size of the installation and the renewable technology used.
The final premium will not be set at a level greater than the difference between the electricity market price in Lithuania, known as the ‘reference price’ and the average production costs of the most cost-efficient renewable energy technology in Lithuania, known as the ‘maximum price’.
Both the reference price and the maximum price will be set by the Lithuanian national energy regulator for each auction.
The Commission assessed the scheme under EU State aid rules, in particular under the ‘2014 Guidelines on State aid for environmental protection and energy’.