Commission approves support for production of electricity from renewable energy sources and for electro-intensive users in Lithuania

The European Commission has approved, under EU State aid rules, a measure to support the production of electricity from renewable energy sources and a measure to support electro-intensive users in Lithuania.

Commissioner Margrethe Vestager, in charge of competition policy, said: “These two schemes will allow Lithuania to both continue supporting the development of renewable energy sources in the country and to preserve the competitiveness of electricity-intensive companies by reducing their contributions to the financing of this support. This 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.”

Aid to the production of electricity from renewable energy sources

In 2012, Lithuania set up a scheme to support producers of electricity from renewable energy sources (wind, solar, hydro, biomass and biogas). The scheme will run until 2029 and the overall budget until the end of the support is expected to amount to €1,242 million.

Today, the Commission approved aid granted under this scheme from 2012 to 2015, when the last beneficiary under the scheme was selected. During this period, beneficiaries were selected through tender procedures and are then granted support in the form of a feed-in-premium (i.e. the generator sells its output on the market and receives a top-up payment over the market price) for a period of 12 years.

Aid to energy-intensive users

The Lithuanian support scheme for producers of electricity from renewable energy sources is financed via a levy paid by the final electricity consumers.

From 1 January 2019, Lithuania intends to grant reductions on this levy to energy-intensive industrial users, such as companies active in the manufacture of fertilizers. The beneficiaries will obtain compensation for 85% of the levy paid the previous year if they demonstrate an electro-intensity of at least 20%.

The measure will promote EU energy and climate goals and ensure the global competitiveness of energy-intensive users and industries, without unduly distorting competition in the Single Market.

Original source: European Commission
Published on 8 January 2019