The European Commission (EC) has agreed to support a scheme that focuses on electricity production from renewable energy sources in Lithuania.
Lithuania is set to present a new scheme, which has an overall budget of €385m, on 1 May this year.
It will support installations that produce electricity from renewable sources such as wind, solar and hydropower.
The scheme is also expected to help the European country to meet its 38% national target share of renewable energy sources in gross final energy consumption by 2025. It will be in place until 1 July 2025 or until the target is achieved.
European commissioner Margrethe Vestager 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 scheme was assessed under European Union (EU) State aid rules and the EC found that the aid is proportionate and has an incentive effect.
Under the scheme, the installations will be provided support in the form of a premium that will be determined through a competitive bidding process.
The Lithuanian national energy regulator will be responsible for fixing both the reference price and the maximum price for each auction.
Recently, state-owned enterprise Lietuvos Energijos Gamyba received funding for a floating photovoltaic solar power plant project in Kruonis pumped storage hydroelectric power plant (PSHPP).
The project is being developed in partnership with researchers from Kaunas University of Technology (KTU).