11.1. General political conditions: the National Energy Strategy envisages the renovation of buildings, the modernisation of their energy systems; Lithuania’s accession to the EU opens up political possibilities of implementing EU directives relating to energy efficiency enhancement in buildings.

Specific political conditions in the housing sector: the Lithuanian Housing Strategy approved by Resolution No 60 of the Government of the Republic of Lithuania of 21 January 2004 (Valstybės Žinios No 13-387, 2004) aimed at the renovation and modernisation of the existing housing, as well as the rational use of energy resources; the Programme for the Modernisation of Multi-apartment Houses approved by Resolution No 1213 of the Government of the Republic of Lithuania of 23 September 2004 (Valstybės Žinios No 143-5232, 2004; No 78-2839, 2005).

Specific political conditions in the public building sector: the Single Programming Document of Lithuania for 2004–2006 provides for a possibility to use support of EU funds to renovate public buildings.

11.2. General economic conditions: the economic growth of the country and global prices for energy resources create good conditions for implementing energy-saving measures; a strong construction sector is able to satisfy increasing demand for modernisation works on buildings; owners of buildings are short of funds, especially in small towns and villages; the Rules for Providing State Support for the Modernisation of Multi-apartment Houses and Assessing the Energy Efficiency of Investment Projects approved by Order No 1K-237/D1-394 of the Minister of Finance and the Minister of Environment of 12 August 2005 (Valstybės Žinios No 102-3792, 2005); commercial banks grant credits for the renovation of private buildings and individual residential houses.

Specific economic conditions in the public building sector: a possibility to receive EU structural funds support; the available alternative financing mechanisms are underdeveloped.

11.3. General social conditions: the migration, ageing of the population and a declining birth rate as well as the associated reorganisation of education and health care institutions cause uncertainty about the future of part of health care and education institutions, which makes it difficult to plan investments and increases their risk.

Specific social conditions in the housing sector: favourable conditions are created for owners of multi-apartment houses of socially and financially different composition for contributing to the renovation of buildings; there is a lack of traditions and experience in maintaining and renovating multi-apartment houses; wealthier families move to better quality dwellings, while poorer households stay in the existing multi-apartment houses.

11.4. General technological conditions: building renovation technologies have been successfully tested and used in implementing various programmes and projects for the renovation of buildings; the common EU market ensures rapid employment of new technologies in the country; high prices hinder the application of technologies (thermal insulation of walls, roofs, etc.) with enormous energy saving potential in the country; exports of renewable energy resources (e.g. wood pellets) to economically advanced countries raise their prices and halt their spread in Lithuania.

12.1. General strengths of the sector: a robust construction base; the Lithuanian Housing Strategy approved.

Specific strengths of the multi-apartment housing sector: the accumulated extensive experience of enhancing energy efficiency in multi-apartment houses; the Programme for the Modernisation of Multi-apartment Houses approved.

Specific strengths of the individual housing sector: an identifiable home owner and a rather well-developed legal environment; possibilities of getting credits from commercial banks.

Specific strengths of the public building sector: an identifiable building owner and a rather well-developed legal environment; possibilities of getting credits from commercial banks.

12.2. General weaknesses of the sector: inefficient energy consumption; poor organisational capacities of the sector participants; lack of standards and mandatory requirements for buildings to be renovated.

Specific weaknesses of the housing sector: low income of home owners; their poor financial awareness; pending issues concerning restoration of ownership rights; an inadequate legal regulatory framework of the sector; an underdeveloped crediting system for housing renovation.

Specific weaknesses of the public building sector: lack of motivation of building owners and users; scarce funds and alternative financing mechanisms; uncertain future of some institutions.

12.3. General opportunities of the sector: successful implementation of EU directives relating to energy efficiency enhancement; bigger national budget resulting from the economic growth allows increasing support for greater energy efficiency; the development of banks, other credit institutions and enterprises providing energy-related services, larger supply of new crediting products.

Specific opportunities of the housing sector: more active participation of the population in solving housing problems; a growing construction sector; better use of organisational and intellectual capacities of the participants of the housing market.

Specific opportunities of the public building sector: the development of the sector providing energy-related services.

12.4. General threats to the sector: demographic changes due to the migration, ageing of the population and a declining birth rate; skyrocketing prices of certain renewable energy resources (e.g. wood pellets) as a result of exports.

Specific threats to the housing sector: a relative increase in low-income households in old residential buildings.

Specific threats to the public building sector: uncertain future of some education and health care institutions; the economic recession of certain regions.

13.1. General political conditions: Lithuania’s accession to the EU created political conditions for modernising and maintaining equipment and technological processes in compliance with EU standards and new consumer demand; Lithuania has signed the Kyoto Protocol and assumed the commitment to reduce greenhouse gas emissions by 8% in the period from 2008 to 2012 (compared with 1990 as the base year).

Specific political conditions in the cogeneration and district heating sectors: the National Energy Strategy targets at co-generated electricity accounting for at least 35% in the total energy production by 2020; the National Energy Strategy envisages increasing the efficiency of district heating systems.

Specific political conditions in enterprises, establishments and households: the labelling of lighting systems and domestic electrical appliances is regulated; the EU emissions trading system has been operational since 2005; the trade in textiles has been liberalised on global markets since 2005.

Specific political conditions in transport: the Lithuanian transport sector is one of the priority economic sectors; the priorities of the transport sector development are set forth in the Long-term Development Strategy of the State approved by Resolution No IX-1187 of the Seimas of the Republic of Lithuania of 12 November 2002 (Valstybės Žinios No 113-5029, 2002), the Programme of the Government of the Republic of Lithuania approved by Resolution No X-43 of the Seimas of the Republic of Lithuania of 14 December 2004 (Valstybės Žinios No 181-6703, 2004), the Long-term (until 2025) Development Strategy of the Lithuanian Transport System approved by Resolution No 692 of the Government of the Republic of Lithuania of 23 June 2005 (Valstybės Žinios No 79-2860, 2005), laws and supporting legislation of the Republic of Lithuania harmonised with the EU’s acquis; Lithuania has assumed the commitment to strive to achieve that by 31 December 2010 the share of biofuels would account for at least 5.75% of the total energy of petrol and diesel for transport purposes on the national market; the Long-term (until 2025) Development Strategy of the Lithuanian Transport System provides that indigenous renewable biological resources must satisfy up to 15% of Lithuania’s fuel needs.

13.2. General economic conditions: Lithuania’s growing economy sets new requirements for the quality and quantity of energy, industry and transport; a possibility to use support from EU structural funds and special programmes aimed at reconstruction and modernisation of infrastructure; moderate taxes compared with other EU states; no specific taxes on energy consumption; increasing prices for energy resources; the liberalisation of the electricity and gas market.

Specific economic conditions in the cogeneration and district heating sectors, as compared with other EU states: electricity consumption per capita in Lithuania is low; natural gas prices are low but the future development of prices is uncertain; moderate pollution taxes.

Specific economic conditions in enterprises, establishments and households: favourable leasing terms by banks for the acquisition of domestic electrical appliances; the EU states have become the major export market for Lithuanian industrial enterprises; the increasing interest of foreign investors in industrial enterprises; a small Lithuanian market makes industrial enterprises highly dependent on their competitive ability on the global market; more efficient domestic appliances are more expensive; financial services provided to industrial enterprises are insufficiently flexible.

Specific economic conditions in transport: in order to meet commitments to the EU, Lithuania plans to increase the excise duty on fuels so as to gradually reach the minimum excise duty rates set by the EU legal acts; broader economic relations determine the growing need for transport services; so far the increase of energy efficiency in transport is not directly related to the environmental pollution or the use of non-renewable resources; full advantage has not been taken yet of all the economic opportunities for increasing the use of more energy-efficient transport or alternative fuels (biofuels); insufficient and uncertain financing of public transport reduces its attractiveness and increases the use of private motor vehicles.

13.3. General social conditions: rising household incomes in developing regions are primarily spent on social needs: consumption is increasing, the household situation is improving, people become more mobile; society is not prepared to pay for cleaner environment, and the so-called green energy is not yet considered a value; society still fails to realise the importance of the efficient use of energy; considerable social disparities among regions.

Specific social conditions in enterprises, establishments and households: the improving life is setting higher requirements for the consumer environment, environmental protection; production organisation in industrial enterprises needs to be improved.

Specific social conditions in transport: open EU borders lead to increasing population mobility in the common EU area, their changing habits, lifestyle and behaviour, the growing flows of tourist and transit freight transport increase the need for the infrastructure connecting with the main transport corridors; the migration of young people to large cities increases the traffic volume in the urban transport infrastructure; low household income and shortage of infrastructure development projects contribute to the social isolation of certain regions, and do not encourage the acquisition of more energy-efficient motor vehicles or adequate reconstruction of infrastructure.

13.4. General technological conditions: high EU requirements for quality for technological equipment and processes; most technologies related to energy extraction, transmission, transformation and final consumption are imported into Lithuania and practically not developed in the country; Lithuania is one of the EU states getting the least number of patents; most of energy resources is imported from Russia; scientific research is insufficiently and inefficiently financed.

Specific technological conditions in the cogeneration and district heating sectors: the natural gas supply infrastructure is developed; district heating systems are well-developed in all Lithuanian regions but their operation is inefficient as a result of reduced heat consumption and the disconnection of some consumers from these systems.

Specific technological conditions in enterprises: old technologies are still in widespread use; the industry uses too little technologies and too much human workforce; low labour productivity.

Specific technological conditions in transport: the Lithuanian transport infrastructure is rather well-developed but it already fails to meet the consumer needs; road transport is predominant, and due to a rapid increase in motorisation and transit traffic volume this mode of transport will become even more dominant in future; expanding cities and decreasing importance of public transport; good technological conditions for developing the production of alternative fuels and non-motor transport infrastructure in medium-sized towns.

14.1. General strengths of the sectors: programmes for the development of infrastructure complying with the EU requirements are financed by EU structural funds; the perspective of diversification of the supply system of energy and energy resources.

Specific strengths of the cogeneration and district heating sectors: the cogeneration of electricity and heat and district heating systems have been long used and are well known in Lithuania; the existing district heating systems provide technical conditions for developing cogeneration; the legal environment conducive to cogeneration and supporting the maintenance and higher efficiency of district heating systems is in place; the gas pipeline infrastructure developed in many regions of the country allows using cheaper co-generators; the process of the heat sector planning on the municipal level has gained momentum and enables to retain district heating systems and to enhance their efficiency.

Specific strengths of enterprises and establishments: the workforce psychologically better adapted to the requirements of the market economy, greater awareness of personal responsibility; a favourable environment for the introduction of energy management systems.

Specific strengths of transport: the Lithuanian transport infrastructure is rather well-developed ensuring quite efficient freight and passenger transportation; Lithuania extracts oil sufficient to ensure the minimum functioning of the transport sector under emergency conditions; current low taxes on alternative fuels should stimulate their consumption; measures aimed at enhancing energy efficiency may be widely introduced in the road transport sector which accounts for about 90% of energy consumption.

14.2. General weaknesses of the sectors: problems concerning the implementation of laws; the public system of research institutions is not focused on applied research and technological development; there is a lack of information about financing possibilities for projects aimed at enhancing energy efficiency; banks are not very interested in granting loans to implement energy-saving projects.

Specific weaknesses of the cogeneration and central heating sectors: electricity production by the Ignalina Nuclear Power Plant, electricity surplus; the current district heating systems are inefficient and unattractive to consumers, hence, there is a marked tendency to disconnect from these systems; the structure of the natural gas price is conducive to natural gas combustion in individual heating boilers; complicated procedures for the connection of co-generators to the electricity network; municipalities have limited investment capacity for contributing to the financing of cogeneration projects requiring large-scale investments; an inadequate and irregular legislative and regulatory framework regulating the activities of the heat sector; the system of environmental taxes does not stimulate the development of cogeneration.

Specific weaknesses of enterprises, establishments and households: lack of management experience as regards energy efficiency in industrial enterprises; inadequate professional and managerial competence; low demand for energy-efficient domestic electrical appliances; enterprises have scarce resources for the introduction of innovations.

Specific weaknesses of transport: the railway, inland waterway and non-motor transport infrastructure is outdated or underdeveloped; the rising level of motorisation, increasing population mobility and growing transit flows across the territory of Lithuania will increase future demand for energy resources; there is a growth in the number of private (mainly second-hand) motor vehicles, which overloads the infrastructure of some towns; an inadequate legislative basis, a lack of coordination and economic measures stimulating the use of alternative fuels; scant attention is paid to the development of non-motor transport in towns; the use of public transport is continuously decreasing; old motor vehicles and outdated infrastructure increase environmental pollution and energy consumption; the interoperability of different transport modes is insufficient; no programme aimed at increasing the efficient use of energy resources and energy has been developed in the transport sector.

14.3. General opportunities of the sectors: fulfilling international commitments assumed by the country relating to the use of renewable energy resources; attracting foreign investments to the modernisation of infrastructure; the membership in the EU has opened up new opportunities for modernising infrastructure in accordance with EU requirements.

Specific opportunities of the cogeneration and district heating sectors: retaining, improvement and renovation of the existing district heating systems, minimisation of energy losses, improvement of the quality of services provided to consumers; improvement of territorial planning, implementation of plans of the heat sector; development of the gas pipeline infrastructure in the regions that are not supplied with gas, efficient use of natural gas for energy production in co-generators; use of EU structural funds support for implementing cogeneration projects.

Specific opportunities of enterprises: enhancing energy efficiency in industrial enterprises and the competitiveness of the national industrial enterprises; fulfilling international commitments assumed by the country relating to the installation of co-generators; using support from EU structural funds and special programmes for implementing projects aimed at enhancing energy efficiency.

Specific opportunities of transport: developing non-motor transport infrastructure in towns; developing public transport services, integrating urban development plans into public transport planning; stimulating by tax measures the acquisition of new and more energy-efficient motor vehicles; modernising urban traffic management systems; developing urban transport infrastructure through the construction of bypasses; developing the inland waterway transport system; establishing multimodal logistic centres near the main transport corridors and attraction centres; implementing a policy that gives priority to more energy-efficient transport; drawing up a programme for increasing the efficient use of energy resources and energy in the transport sector, which would justify and envisage specific measures helping to reduce the adverse environmental impact of transport by more efficient energy consumption in the transport sector.

14.4. General threats to the sectors: a heavy energy dependence on imported energy resources; inability of the national institutional structures to use possible foreign financial support or inefficient use of such funds.

Specific threats to the cogeneration and district heating sectors: inexplicit rules of operation in the liberal market; low electricity prices; larger amounts of natural gas are combusted by individual boilers due to regulated pricing; heating utilities give priority to heat production by boilers rather than co-generators; support is provided only for the renovation of large co-generating facilities without adequately exploiting the potential of small capacity co-generators.

Specific threats to enterprises and establishments: the introduction of additional taxes (e.g. tax on CO₂) may increase the product price and reduce the competitiveness of industrial enterprises.

Specific threats to transport: due to increasing number of motor vehicles and growing transit flows the existing infrastructure may become congested; the solution of the economic and legal problems of public transport is postponed; second-hand motor vehicles imported from abroad are usually of poor technical condition and increase pollution; possibilities of using indigenous renewable resources will directly depend on the regulation of this issue by the State; inadequate development of urban and transport infrastructure.

15.1. General political conditions: the priority of using indigenous, renewable and waste energy resources in Lithuania is ensured by the obligations under the EU membership and Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market; Lithuania has assumed commitments under the Kyoto Protocol to reduce greenhouse gas emissions by 8%, compared with 1990 as the base year, in the period from 2008 to 2012. The National Energy Strategy has set a target to increase the consumption of renewable energy resources up to 12% in the total primary energy balance by 2010.

15.2. General economic conditions: electricity consumption per capita in Lithuania is lower than in the EU; rapid economic development stimulates higher electricity consumption; the liberalisation of the electricity market may affect economic conditions of the use of indigenous, renewable and waste energy resources; moderate taxes compared with other EU states; no specific taxes on energy consumption; low pollution taxes; research on technologies that use renewable energy resources is poorly supported by the State.

15.3. General social conditions: the so-called green energy is not considered a value by the Lithuanian society; society is not prepared to pay for cleaner environment; low household income hinders investments in reducing the use of resources in residential buildings; non-governmental organisations are not sufficiently active.

15.4. General technological conditions: lack of funds results in inadequate introduction of advanced technologies; there is a surplus of installed electricity-generating capacity; the experience of Lithuanian producers of manufacturing the equipment that uses indigenous, renewable and waste energy resources.

16.1. General strengths of the sector: the legal environment conducive to the use of indigenous, renewable and waste energy resources for energy production is in place in Lithuania; biofuel is widely used in boilers that are being modernised; the heat sector planning on the municipal level regulated by the Law on the Heat Sector allows wider use of indigenous, renewable and waste energy resources for heat generation; feed-in tariffs are introduced on the buying-in of electricity produced from the resources; the enormous technical potential of indigenous, renewable and waste energy resources: agricultural land and forests cover over 80% of the territory, favourable wind conditions.

16.2. General weaknesses of the sector: electricity production by the Ignalina Nuclear Power Plant and its surplus; complicated procedures for connecting to the electricity network; large investments in indigenous, renewable and waste energy plants; the tax policy does not stimulate the use of indigenous, renewable and waste energy resources; municipalities have limited investment capacity for contributing to project financing; scant attention is paid to the monitoring of ongoing projects related to indigenous, renewable and waste energy resources, hence, model projects fail to serve their demonstrational function; rare use of indigenous, renewable and waste energy resources in buildings; an underdeveloped Lithuanian financial market; poor public awareness of the importance of the use of indigenous, renewable and waste energy resources.

16.3. General opportunities of the sector: territorial planning development, the implementation of plans of the heat sector by using indigenous, renewable and waste energy resources for heat generation; the strengthening of the legislative basis for creating a favourable environment for energy production from indigenous, renewable and waste energy resources; the improvement of the investment environment for indigenous, renewable and waste energy resources; the use of EU structural funds support for implementing projects related to the use of indigenous, renewable and waste energy resources; proper exploitation of indigenous, renewable and waste energy resources in buildings; readiness to implement the green certificate system; coordination of support for the development of the use of indigenous, renewable and waste energy resources and regional industry in creating new jobs, promoting regional development; reduction of fuel imports through the use of indigenous, renewable and waste energy resources; public education by explaining benefits of energy production from indigenous, renewable and waste energy resources.

16.4. General threats to the sector: uncertainty over operation in the liberal market will discourage investments in new co-generating equipment; poor state support for the implementation of projects related to indigenous, renewable and waste energy resources will inhibit the development of their use; slow accumulation of experience of these resources and state-of-the-art technologies for their use will hinder their timely and efficient use in future; the use of these resources will be halted by little attention to public information and education.

17.1. According to the data of the state enterprise Centre of Registers, there were 401646 residential buildings in Lithuania at the beginning of 2004, of which 16568 three-storey and higher buildings; the total area of these buildings was 92974.42 and 43118.71 thousand square metres respectively.

17.2. According to the data of 2001 census, 50.9% of all Lithuanian dwellings receive heat from district heating networks (73.5% in urban areas), 24.6% are heated by local heating sources (16.6% in urban areas), and 24.5% have other types of heating (9.9% in urban areas). The estimated heat demand for residential buildings when normal or similar comfort conditions are maintained in all premises is 23.4 TWh in the normal heating season, of which 18.6 TWh for heating and 4.8 TWh for the preparation of hot water, including respectively 12.1 TWh and 1.8 TWh for one and two-storey buildings. These indicators exceed the statistical data, as part of the fuel used in rural areas is not recorded in the fuel and energy balance. In addition, some living space is not heated throughout the entire season, maintaining the temperature below the normal.

17.3. The technical energy saving potential in residential buildings and their engineering systems is 8.2 TWh (of which 5.5 TWh in multi-storey buildings).

17.4. The economic energy saving potential in residential buildings and their engineering systems is targeted at 5.2 TWh (of which 3 TWh in multi-storey buildings), which will require investments of LTL 9.7b and LTL 4.6b respectively. These indicators are based on the assumption that 15% of residential buildings in all groups will invest LTL 300 (per square metre), 40% – LTL 150 (per square metre) and 45% – LTL 50 (per square metre) in the energy-saving renovation of buildings.

17.5. According to the data of the state enterprise Centre of Registers, the total area of public buildings in Lithuania amounted to 30.1 million square metres at the beginning of 2004, of which 7.9 million square metres of administrative buildings, 5.9 million square metres of hotels, trade, service, catering and recreational buildings, 8.7 million square metres of cultural, education and sports buildings, 2.5 million square metres of health care buildings, and 5.1 million square metres of special, religious and other buildings.

17.6. Investments in energy-saving measures under projects aimed at reconstructing state-owned public buildings account for 20–50% of all investments. Another share of investments is allocated for restoring the physical state of, or modernising building units.

17.7. The technical energy saving potential in public buildings and their engineering systems is 2.8 TWh, subject to average investment of LTL 160 (per square metre) in energy-saving measures in buildings of all groups.

17.8. The economic energy saving potential in public buildings and their engineering systems is targeted at 2.5 TWh, subject to average investment of LTL 110 (per square metre) in energy-saving measures in buildings of all groups.

19.1. The technical potential of installing average and low capacity co-generators would be the installed capacity of 300–330 MWel and the annual electricity output of 1400–1500 GWh.

19.2. The economic potential of installing average and low capacity co-generators would be the installed capacity of 120–130 MWel and the annual electricity output of 700–800 GWh.

22.1. The share of indigenous, renewable and waste energy resources constituted 8.3% (renewable – 8.03%) in the total national fuel balance in 2004. The total capacity of equipment using indigenous and renewable resources covered by the projects implemented by 2004 is about 350 MW, and its major share is used for heat generation. Over 60% of the projects are aimed at using biomass.

22.2. Industrial enterprises used about 0.92 TWh of waste heat in 2003.

22.3. The consumption of energy produced from renewable energy resources in 2004 and the economic potential for its consumption by types of energy resources (TWh a year) are as follows: wood – 8.03/9.8; straw – 0.05/3.59; biogas and landfill gas – 0.02/0.4; hydro energy – 0.42/1.5; solar and geothermal energy – 0.02/2.1; wind energy – 0.00/0.85; biofuels – 0.01/2.25. The use of renewable energy resources accounted for 8.55 TWh of energy consumed in 2004, and the economic potential for using such energy is targeted at the annual amount of 11.9 TWh in 2010 and 14.3 TWh in 2020.

22.4. The economic potential for electricity production from renewable energy resources will increase by 0.2–1% a year. It is foreseen that 7.7% of the electricity consumed will be produced from these resources in 2009. Priority is given to wind energy, then biomass.

22.5. The total potential of waste energy resources in national industrial enterprises, energy enterprises and waste water treatment plants is about 7.5–10.5 TWh a year. The technical potential for using these resources amounts to some 5–6.5 TWh a year. The economic potential for using waste energy resources is around 4 TWh a year.

25.1. to pursue energy policy consistent with sustainable development objectives, to integrate energy efficiency into the overall national policy by coordinating sectorial actions, developing and applying appropriate regulation;

25.2. to conduct applied scientific research work, to carry out information and educational activities on issues relating to efficient energy consumption and the use of renewable and waste energy resources.

27.1. to ensure the efficient use, renovation and modernisation of the existing buildings;

27.2. to strengthen the capacities of building owners, managers and other market participants to maintain, renovate and modernise buildings, to improve their energy characteristics.

28.1. to create conditions so that co-generated electricity would account for at least 35% of the total electricity output by 2020;

28.2. to increase the efficiency of district heating systems;

28.3. to focus the development of the industrial sector on state-of-the-art and environment-friendly technologies;

28.4. to enhance the energy efficiency of equipment in enterprises, establishments and households;

28.5. to coordinate the development of all transport modes, giving priority to more environment-friendly transport.

33.1. heat consumption in the existing buildings will decrease by 7%;

33.2. cogeneration will account for 20% in the total balance of electricity production;

33.3. the share of renewable energy resources will constitute up to 12% in the total primary energy balance in 2010;

33.4. the use of waste energy resources will increase by 2 TWh by 2010;

33.5. 7% of the total electricity consumption will have to be produced from renewable energy resources by 2010;

33.6. by 31 December 2010, the share of biofuels will account for at least 5.75% of the total energy of petrol and diesel for transport purposes on the national market.

34.1. greenhouse gas emissions will be reduced by 8%, compared with 1990 as the base year;

34.2. with the proper exploitation of the potential for energy saving, efficient transformation and the use of indigenous, renewable and waste energy resources as forecasted by 2010, emissions will be reduced by the following amounts, as compared with 2004: CO₂ – by approximately 32% (3894000 tons) a year, SO₂ – by 3% (1070 tons) a year, and NO_x – some 21% (9734 tons) a year.