Connect with us

Hi, what are you looking for?

Lithuania renewable energy
Credit: Government of Lithuania

Clean Power

Lithuania Approves Plan To Promote More Renewable Energy Communities

Lithuania is promoting renewable energy communities with new energy regulations.

In many countries, generating and selling electricity is the exclusive province of utility companies, which have a monopoly in their service area. That makes a certain amount of sense. The tangle of wires that run over our heads everywhere would be infinitely worse if several companies were all supplying electricity via their own distribution networks. And few areas would welcome more generating plants built and operated by competing electricity suppliers.

But ideas that made sense a century ago when Thomas Edison and George Westinghouse were slugging it out for supremacy in the shiny new world of electrical energy are less appealing today when anyone with a roof or a plot of vacant land can install solar panels to make their own electricity. The very idea frightens utility companies to their core and they have flexed their political muscles to prevent it from happening on a large scale.

Lithuania is taking a different approach. The government has recently approved new legislation based on proposals by the Ministry of Energy that will encourage the establishment of renewable energy communities where people and businesses generate their own electricity and share it with each other. Producers of renewable energy will be allowed to sell energy between themselves and to end users, according to the government.

“We can see that renewable energy is rapidly gaining popularity among residents and companies, so we are constantly looking for new solutions, improving the environment and expanding opportunities for everyone. Today, energy communities are still a novelty not only in Lithuania, but in other European countries as well, but in the future they will become a fairly common phenomenon, just as renewable energy has already become in many households today,” says Minister of Energy Žygimantas Vaičiūnas.

The amendments to the Law on Energy from Renewable Sources are designed so that renewable energy communities will be able to manage and develop power plants using renewable resources for energy production  — to produce, consume and accumulate energy in their storage facilities and sell the energy produced, the government says. These communities can be owned by individuals, small businesses or municipal authorities, provided that humans hold at least 51% of the votes at the general meeting of shareholders.

The new legal provisions will reduce the administrative burden for renewable energy producers. In order to sell electricity to an end user, it will no longer be necessary to obtain a license as an independent electricity supplier. They can simply sell electricity to an end user subject to the same requirements as independent electricity suppliers. The new rules are intended to make it easier for renewable energy producers to sell the energy they produce. Special rules apply to systems with a capacity of less than 500 kW.

Renewable energy is a threat to investor-owned utilities which are used to a cozy relationship with regulators and a guaranteed rate of return no matter how poorly mismanaged they are. Hopefully the Lithuanian model will spread to other nations over time.

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

Steve writes about the interface between technology and sustainability from his home in Florida or anywhere else The Force may lead him. He is proud to be "woke" and doesn't really give a damn why the glass broke. He believes passionately in what Socrates said 3000 years ago: "The secret to change is to focus all of your energy not on fighting the old but on building the new."


You May Also Like


Throughout 2022, researchers, staff, and leadership at the U.S. Department of Energy’s (DOE’s) National Renewable Energy Laboratory (NREL) worked together with collaborators and partners...

Clean Power

Six EU states join up to harvest green hydrogen from the Baltic Sea and transport it to industrial clusters in the Baltic region and...


Lithuania is the first nation in the world to adopt the LA100 renewable energy model developed by the US National Renewable Energy Laboratory for...

Clean Transport

I’ve followed the European electric car and EV charger market for a decade. We’ve hosted conferences on EV charging within Europe. Nonetheless, I was...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.