On the Approval of the National Energy Efficiency Programme for 2006-2010


Published: 2006-11-05

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Government of the Republic of Lithuania
Resolution No 443
 
of 11 May 2006
 
ON THE APPROVAL OF THE NATIONAL ENERGY EFFICIENCY PROGRAMME FOR 2006–2010
 
Vilnius
 
Acting pursuant to subparagraph 3 of paragraph 1 of Article 5 of the Law of the Republic of Lithuania on Energy (Valstybės Žinios (Official Gazette) No 56-2224, 2002) and implementing the provisions of the National Energy Strategy approved by Resolution No IX-1130 of the Seimas of the Republic of Lithuania of 10 October 2002 (Valstybės Žinios No 99-4397, 2002), the Government of the Republic of Lithuania has resolved:
1. To approve the National Energy Efficiency Programme for 2006–2010 (appended).
2. To obligate ministries and other institutions to observe the provisions of the Programme referred to in point 1 of this Resolution when drawing up, within their competence, programmes for the development of the economy.
3. To charge relevant institutions responsible for carrying out the implementation measures of the Programme approved by this Resolution with the task of providing information, within their competence, to the Ministry of Economy about the implementation of this Programme by 31 January each year.
4. To propose that municipalities participate in the implementation of the Programme approved by this Resolution and its implementation measures.
 
 
 
 
Minister of Finance                                                                        
Acting Prime Minister                                                                     Zigmantas Balčytis
 
 
 
Minister of Economy                                                                      Kęstutis Daukšys
 
 
APPrOVED by
Resolution No 443 of the Government of the Republic of Lithuania
of 11 May 2006
 
 
National energy efficiency programme for 2006–2010
 
I. GENERAL PROVISIONS
 
1. The National Energy Efficiency Programme for 2006–2010 (hereinafter referred to as this Programme) is an inter-institutional programme providing for organisational, legal, economic, technological improvement and introduction, applied research, public education and awareness raising measures aimed at increasing the efficient use of energy resources and energy, as well as the monitoring of their implementation in the following sectors: buildings and their engineering systems, cogeneration, district heating, equipment in enterprises, establishments and households, transport, as well as indigenous, renewable and waste energy resources.
2. The legal basis for this Programme is formed by international commitments assumed by the Republic of Lithuania, as well as the legal acts of the European Union and the Republic of Lithuania regulating directly or related to the efficient use of energy resources, renewable and waste energy resources.
The international commitments of the Republic of Lithuania regulating directly or related to energy efficiency are set out in the Kyoto Protocol to the United Nations Framework Convention on Climate Change (Valstybės Žinios No 126-5735, 2002) ratified by the Law of the Republic of Lithuania on the Ratification of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (Valstybės Žinios No 126-5728, 2002), and the Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects (Valstybės Žinios No 66-1912, 1998) ratified by the Law of the Republic of Lithuania on the Ratification of the Energy Charter Treaty and the Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects (Valstybės Žinios No 66-1908, 1998).
3. Energy savings and efficient use of energy resources, as well as the encouragement of producers and consumers to use indigenous, renewable and waste energy resources efficiently are among the principal energy policy objectives defined in the Law of the Republic of Lithuania on Energy (Valstybės Žinios No 56-2224, 2002) and the National Energy Strategy approved by Resolution No IX-1130 of the Seimas of the Republic of Lithuania of 10 October 2002 (Valstybės Žinios No 99-4397, 2002). The conclusions and proposals made by the drafters of the National Energy Efficiency Programme were accepted by Resolution No 73 of the Government of the Republic of Lithuania of 31 January 1992 on the Implementation of the National Energy Efficiency Programme (Valstybės Žinios No 12-327, 1992). It was the first programming activity in the national economy after the restoration of Lithuania’s independence. Taking into account the situation and the forecasts for the development of the national economy and its individual branches, the National Energy Efficiency Programme shall be updated every five years.
4. In terms of the new sustainable development approach and science, the supply of society with energy is perceived as an integrated operation and development of primary energy transformation, supply and consumption systems under acceptable long-term economic, social and environmental conditions. This approach, fully supported by the United Nations, is important for both the world’s leading economies and other advancing countries.
5. The World Energy Council has set three energy supply goals. Availability covers the quality and reliability of energy services. Accessibility is the provision of modern and reliable energy services at an affordable price. Acceptability reflects public attitudes towards environmental protection.
6. The International Energy Agency emphasises that energy efficiency needs to be integrated in the overall policy in economies in transition. Therefore, governments of such countries should implement general energy (production, supply and demand) policy and subsequent regulation.
7. The European Union (hereinafter referred to as the EU) focuses particular attention on the development of sustainable energy and promotes energy efficiency. The underlying reasons for the EU’s concern about energy efficiency are obvious. The first reason is the security of primary energy supply – current dependence on external energy sources has reached 70% and is likely to increase. The second reason is environmental protection – energy production and consumption (including transport) produces 94% of CO2 emissions. The third reason is a limited possibility to influence energy suppliers, whereas the EU may change this situation primarily by promoting energy efficiency. On the other hand, more efficient use of energy constitutes a significant part of the strategy and actions laid down in the Kyoto Protocol actively supported by the EU. The Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions of 26 April 2000 – Action Plan to Improve Energy Efficiency in the European Community (COM/2000/0247) outlines a European Community strategy in this sector until 2010. This plan covers the integration of energy efficiency measures, the strengthening of the existing policy, new measures, Community initiatives in pursuing general and coordinated policies and implementing the measures. The content and extent of these problems is also important for Lithuania, both as an EU Member State and at the national policy level.
8. A new EU programming document, the Green Paper on Energy Efficiency or Doing More With Less (22 June 2005, COM (2005) 265 Final), was published. It states that even without high and increasing oil prices which may downgrade the prospects of economic growth in Europe there are very good reasons for the EU to make a strong push towards re-invigorating a programme for the promotion of energy efficiency combining the issues of competitiveness, the Lisbon agenda, environmental protection, Kyoto obligations and security of energy supply that are important at Community level. The Green Paper seeks to identify the bottlenecks of this activity, e.g. lack of appropriate initiatives, lack of information, and lack of available financing mechanisms. This document also aims at identifying options for overcoming these bottlenecks, suggesting necessary actions. An action plan to address the challenges set forth in this document is to be worked out in 2006.
9. Common economic and energy indicators and their dynamics are important in energy efficiency assessment.
Lithuania’s gross domestic product (GDP) increased by 32.9% in the last four years (6.4% in 2001, 6.8% in 2002, 9.7% in 2003 and 6.7% in 2004). In 2004, it amounted to LTL 60.51b (at 2000 current prices), or LTL 17 610 per capita.
Primary energy consumption over four years increased by 26.4%, final energy demand rose by 14.6% and, having regard to non-energy demand, respectively accounted for 106 TWh and 59 TWh, or 30.8 MWh and 17.1 MWh per capita in 2004.
Increased exports led to a rise in total electricity generation in 2000–2004 from 11.42 TWh to 19.27 TWh, or by 68.7%, while electricity consumption in the country increased from 8.81 TWh to 10.81 TWh, or by 22.7%. In 2004, comparative electricity generation and electricity consumption (per capita) amounted to 5.61 MWh and 3.14 MWh respectively.
GDP (measured in purchasing power parity terms) produced in Lithuania per capita was 2.3 times below EU average in 2002. The average primary energy consumption per capita in Lithuania was 1.5 times, final energy consumption – 1.9 times and final electricity consumption – 2.9 times lower than the average in the EU states.
The structural changes of final energy demand over four years by main consumer groups and types of energy (electricity, heat, fuel) were as follows (in percentage for each type of energy and total): household – 14, 2.6, -5.9, -0.4; trade and services – 30.9, 11.1, 11.9, 18.5; industry – 16.1, 26.2, 24.5, 22.7; transport – 4.1, 0, 15.8, 15.8; agriculture – (-10.3), -6, 5.7, 2.
 
II. environment and situation Analysis
 
10. The environment analysis outlines general and specific political, economic, social and technological conditions of individual sectors.
The situation analysis describes general and specific strengths, weaknesses, opportunities and threats of sectors.
11. The environment analysis of the sector of buildings and their energy systems.
This point contains the environment analysis of energy efficiency enhancement in dwellings (multi-apartment and individual houses) and state-owned public buildings:
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. The situation analysis of the sector of buildings and their energy systems.
This point contains the situation analysis of energy efficiency enhancement in dwellings (multi-apartment and individual houses) and state-owned public buildings:
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. The environment analysis of the equipment and its technological processes.
This point contains the environment analysis of the following sectors: cogeneration, district heating, energy equipment in enterprises, establishments and households, and transport:
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. The situation analysis of equipment and its technological processes.
This point contains the situation analysis of the following sectors: cogeneration, district heating, energy equipment in enterprises, establishments and households, and transport:
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. The environment analysis of the sector of indigenous, renewable and waste energy resources:
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. The situation analysis of the sector of 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.
 
iii. Potential for enhaNcing energy efficiency
 
17. The potential for enhancing energy efficiency in buildings and their energy systems:
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.
18. The proper exploitation of the economic potential for heat efficiency in the building sector will reduce CO2 emissions by approximately 15% (1783000 tons) a year, SO2 emissions – by 1.6% (565 tons) a year, and NOx emissions – by 11% (5040 tons) a year, as compared with 2004.
19. Electricity production by the existing co-generating facilities of all capacities increased from 1846 GWh in 2001 to 2483 GWh in 2004. Average and low capacity co-generating facilities produced 405 GWh of electricity in 2004:
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.
20. The average annual energy consumption by the Lithuanian transport sector in 1994–2003 amounted to 13.73 TWh (i.e. 28%); hence, it was the second sector in terms of energy consumption (after the household sector). As a result of decreasing energy consumption in other sectors, the share of the transport sector increased from 24.7% (1994) to 29.1% (2003). Consumption by road transport accounts for about 90% of energy consumption in the transport sector.
The technical energy saving potential in the transport sector is 0.92 TWh.
21. An increase in energy production by average and low capacity co-generating facilities by 753 GWh of annual electricity output will allow reducing CO2 emissions by some 5% (613 000 tons) a year, SO2 emissions – by 0.4% (155 tons) a year, and NOx emissions – by 0.4% (178 tons) a year, as compared with 2004. The saved amount of 0.92 TWh in the transport sector will reduce CO2 emissions by 1.8% (215000 tons) a year, SO2 emissions – by 0.1% (47 tons) a year, and NOx emissions – by 2.8% (1300 tons) a year, as compared with 2004.
22. The potential for using indigenous, renewable and waste energy resources:
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.
23. The exploitation of the economic potential of indigenous and renewable energy resources for 2010 in energy production will allow reducing CO2 emissions by over 7% (880000 tons) a year, SO2 emissions – by 0.2% (88 tons) a year, and NOx emissions – by 1% (471 tons) a year, as compared with 2004. The use of the economic potential of waste heat will reduce the amount of CO2 emissions by about 8% (926000 tons) a year, SO2 emissions – by 0.8% (294 tons) a year, and NOx emissions – by 5.7% (2618 tons) a year, as compared with 2004.
 
Iv. Objectives and tasks of the programme
 
24. This Programme is aimed at increasing the efficiency of the use of energy resources and energy and the use of renewable energy resources in all sectors of the national economy.
25. The tasks of this Programme are as follows:
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.
26. This Programme sets objectives and tasks separately for the sectors of buildings and their engineering systems, cogeneration and district heating, energy equipment in enterprises, establishments and households, transport, as well as indigenous, renewable and waste energy resources.
27. The objective of this Programme for the sector of buildings and their engineering systems is to renovate the existing buildings, to modernise their energy systems. The tasks are as follows:
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. The objective of this Programme in the field of equipment and technological processes is to enhance the efficiency of energy production and consumption in the cogeneration and district heating sectors, technological processes in enterprises, equipment in enterprises, establishments and households, and transport. The tasks are as follows:
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.
29. The objective of this Programme for the sector of indigenous, renewable and waste energy resources is to use these energy resources with the view of reducing the dependence of the country on imports of primary energy resources. The task is to strive that the share of renewable energy resources would account for up to 12% in the total primary energy balance in 2010, while electricity production from these resources would constitute 7% of the total electricity consumption under the commitments agreed upon with the EU.
 
V. Implementation of the Programme
 
30. The implementation of this Programme shall be assessed in the light of the benefits of energy efficiency enhancement which are received not only by direct beneficiaries of this Programme, but also by other groups. The implementation of measures (projects) of this Programme is assessed on the basis of the extent and quality of intellectual products or services, as well as political, economical, resource and environment-friendly, social, demonstrational or political results of projects under implementation.
31. The implementation measures of this Programme shall be financed from the appropriations from the State budget of the Republic of Lithuania approved for ministries and other institutions for the respective year. This Programme may also be financed with the funds of municipalities, EU structural funds support, other states, international organisations and business structures.
32. The Ministry of Economy shall coordinate the implementation of this Programme and its implementation measures (according to the Annex).
 
VI. Expected results
 
33. Having attained the objectives of this Programme, the following quantitative energy indicators will be achieved:
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. Having attained the objectives of this Programme, the following quantitative environmental indicators will be achieved:
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 NOx – some 21% (9734 tons) a year.
35. Having attained the objectives of this Programme, the following qualitative indicators will be achieved: living conditions improved – buildings and their energy systems renovated, properly used and maintained; the monitoring of projects related to energy efficiency and good management of energy needs carried out and summarised; legal and methodical documents for positive regulation of energy efficiency and environmental pollution in the transport and industrial sectors drafted; legal and regulatory documents covering Lithuania’s international commitments and commitments to the EU related to efficient energy consumption and the use of renewable and waste energy resources improved and developed; research conducted, society informed and educated on efficient energy consumption and the use of renewable and waste energy resources.
 
 
 
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Annex to the
National Energy Efficiency Programme for 2006–2010
 
Implementation Measures of the National Energy Efficiency Programme for 2006–2010
 
 
 
Objective
Task
Measure
Responsible institution
Period of implementation (year)
  To increase the efficiency of the use of energy resources and energy, to increase the use of renewable energy resources in all sectors of the national economy
To pursue energy policy consistent with the objectives of sustainable development, to integrate energy efficiency into the overall national policy by coordinating sectorial actions, developing and applying appropriate regulation
1. To draw up a National Energy Efficiency Programme for 2011–2015 and its implementation measures
Ministry of Economy
2009–2010
2. To prepare and carry out studies and programmes concerning the use of indigenous, renewable and waste energy resources
Ministry of Economy, Ministry of Agriculture, Ministry of Environment
2006–2010
3. To draft and implement, in compliance with the requirements of EU directives, legal acts, regulatory and technical documents aimed at increasing the efficient use of energy resources and energy
Ministry of Economy, Ministry of Environment
2006–2010
 
 
4. To draft and implement, in compliance with the requirements of EU directives and other international documents, the necessary legal acts, regulatory and technical documents aimed at increasing the use of indigenous, renewable (including biofuels) and waste energy resources
Ministry of Economy, Ministry of Agriculture, Ministry of Environment
2006–2010
 
 
5. To draft and implement legal acts, regulatory and technical documents promoting:
 
 
 
 
5.1. the production and introduction of energy-saving measures
Ministry of Economy
2006–2010
 
 
5.2. the production and use of indigenous, renewable and waste energy resources (including biofuels), the production and introduction of measures for the use of these resources
Ministry of Economy
2006–2010
 
 
6. To carry out the instructions of the Energy Charter Treaty and the Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects – to take actions ensuring the implementation of the provisions of these international documents
Ministry of Economy, Ministry of Environment, other state institutions
2006–2010
   
   
7. To continue cooperation with foreign states – to participate in the activities of international funds and to implement programmes in order to ensure faster implementation of energy-saving measures and the increasing use of renewable energy resources in the national economy
Ministry of Economy
2006–2010
   
   
8. To draw up and approve rules on the monitoring of efficient use of energy resources and energy (inter alia assessing the results of energy-saving measures at the state level)
Ministry of Economy
2006–2007
 
To conduct applied scientific research work, to carry out information and educational activities on issues relating to energy efficiency and the use of renewable and waste energy resources
9. To promote joint applied research and technological development work of research institutions and business enterprises aimed at increasing the efficient use of energy resources and energy, as well as increasing the use of renewable energy resources
Ministry of Economy, Ministry of Education and Science
2006–2010
 
 
10. To provide information, methodical and organisational support for cooperation between Lithuanian and EU business entities, research and consulting institutions participating in the EU’s programmes intended to increase energy efficiency and the use of indigenous, renewable and waste energy resources
Ministry of Economy, Ministry of Environment, Ministry of Agriculture, Ministry of Transport and Communications, Ministry of Education and Science
2006–2010
 
 
11. To develop and regularly update the website of this Programme with Lithuania’s interactive map informing about successfully functioning equipment and technologies that use renewable and waste energy resources, co-generating facilities; to place information on the website about new technologies designed to increase energy efficiency, which are developed and introduced in other states
Ministry of Economy
2007–2010
 
 
12. To prepare and disseminate information about the possibilities for financing of the projects focused on improving energy efficiency
Ministry of Economy
2006–2010
 
 
13. To carry out an expert assessment of the quality of the training of energy specialists under energy study programmes
Ministry of Education and Science
2008
 
 
14. To establish regional and structural needs for the training of specialists on the use of energy resources, the design, use and maintenance of equipment and systems using energy
Ministry of Economy, Ministry of Education and Science
2007–2008
 
 
15. To organise conferences, seminars, contests and exhibitions that would strengthen the capacities of national specialists and society to use energy resources and energy more efficiently, to use indigenous, renewable and waste energy resources to a larger extent, as well as to promote starting-up demonstrational holdings of renewable energy resources
Ministry of Economy, Ministry of Environment, other interested state institutions
2006–2010
 
 
16. To organise the preparation and publishing of leaflets, booklets, other publications for the population, pupils, students and specialists of various economic sectors about the efficient use of indigenous, renewable, waste and other energy resources and energy efficiency
Ministry of Economy, Ministry of Environment, Ministry of Agriculture, Ministry of Education and Science
2006–2010
 
 
17. To organise the preparation and publishing in media of the material on savings in energy resources and energy, the use of renewable and waste energy resources, as well as energy-saving measures, appliances and equipment using renewable and waste energy resources
Ministry of Economy, Ministry of Environment, Ministry of Agriculture, Ministry of Transport and Communications
2006–2010
 
 
18. To spread energy-saving ideas and information about the implementation of this Programme on television and radio
Ministry of Economy, Ministry of Environment
2006–2010
To renovate the existing buildings, to modernise their energy systems
To ensure the efficient use, renovation and modernisation of the existing buildings
19. To draw up regulatory, technical documents on issues concerning the supply of buildings with heat and the reconstruction of their energy systems
Ministry of Economy
2006–2010
20. To draw up programmes aimed at implementing the minimum measures saving energy resources and energy in buildings maintained from the State budget and municipal budgets of the Republic of Lithuania
State institutions, municipalities
2006–2008
 
 
21.To organise and conduct an energy audit in public buildings
Ministry of Economy
2006–2010
 
 
22. To carry out the monitoring of the efficiency of the energy-saving measures introduced in multi-apartment residential buildings and other buildings
Ministry of Environment, Ministry of Economy
2006–2010
 
To strengthen the capacities of building owners, managers and other market participants to maintain, renovate and modernise buildings, to improve their energy characteristics
23. To increase the energy effectiveness of building maintenance – to improve legal acts regulating such maintenance by setting more stringent requirements for the management of energy systems of buildings and economical energy consumption
Ministry of Environment
2006–2010
To enhance the efficiency of energy production and consumption in the cogeneration, district heating sectors, technological processes in enterprises, equipment in enterprises, establishments and households, and transport
To create conditions so that co-generated electricity would account for at least 35% of the total electricity output by 2020
24. To prepare a feasibility and cost study on the installation of co-generators of different types and capacities, to publish informational methodical material based on this study
Ministry of Economy
2007–2008
25. To organise the application of model, state-of-the-art technologies for cogeneration of electricity and heat
Ministry of Economy
2007–2010
  To increase the efficiency of district heating systems
26. On the basis of drafted special plans of the heat sector, to update, supplement and implement legal acts regulating heat sector planning
Ministry of Economy
2006–2008
  To orientate the development of the industrial sector towards state-of-the-art and environment-friendly technologies
27. To prepare a study on voluntary agreements between enterprises and state institutions in implementing measures enhancing energy efficiency
Ministry of Economy
2009
 
28. To prepare a feasibility study on cooperation between enterprises and financial institutions in implementing projects aimed at enhancing energy efficiency and to present financing schemes for such projects
Ministry of Economy, Ministry of Finance
2007
 
   
29. To conduct energy efficiency research in industrial, transport, agricultural and other enterprises, to develop and implement measures to enhance efficiency
Ministry of Economy, Ministry of Transport and Communications, Ministry of Agriculture
2006–2010
 
   
30. To draw up rules for the monitoring of energy efficiency enhancement following the implementation of projects supported by the State or EU in enterprises
Ministry of Economy
2007–2008
 
  To enhance the energy efficiency of equipment in enterprises, establishments and households
31. To prepare a study concerning the enhancement of the efficiency of the use of lighting, heating, cooling and other electrical devices in enterprises, establishments and households (also taking into account sleep mode)
Ministry of Economy
2008
 
  To coordinate the development of all transport modes, giving priority to more environment-friendly transport
32. To develop a Programme for Enhancing the Efficiency of Energy Resources and Energy in the Transport Sector
Ministry of Transport and Communications, Ministry of Economy
2007
To use indigenous, renewable and waste energy resources with the view of reducing the dependence of the country on imports of primary energy resources
To strive that the share of renewable energy resources would account for up to 12% in the total primary energy balance in 2010, while electricity production from these resources would constitute 7% of the total electricity consumption under the commitments agreed upon with the EU
33. To provide support to enterprises and organisations in expanding their production of equipment using indigenous, renewable and waste energy resources, also equipment designed to prepare and use these resources, as well as to promote the introduction of such equipment
Ministry of Economy, Ministry of Agriculture, Ministry of Environment
2007–2010
34. To produce recommendations as to how to collect and prepare wood waste, straw and other biofuel for burning, burning technologies, organisations schemes for the application of these technologies, as well as to evaluate them and promote their introduction
Ministry of Economy, Ministry of Agriculture, Ministry of Environment
2006–2010
35. To prepare a feasibility study on domestic waste incineration
Ministry of Environment
2007–2008
 
 
36. To promote the implementation of projects related to the use of indigenous, renewable and waste energy resources for energy production, especially model projects, as well as the application of state-of-the-art technologies
Ministry of Economy, Ministry of Agriculture, Ministry of Environment
2007–2010
 
 
37. To examine and evaluate the completed projects related to the use of indigenous, renewable and waste energy resources, to put forward recommendations about further implementation of similar projects
Ministry of Economy, Ministry of Environment
2007–2010
 
 
38. To improve rules for providing guarantees of origin for electricity from renewable energy resources, to get ready to apply the green certificate trading system
Ministry of Economy
2007–2010
 
 
39. To establish and update every four years the database of waste energy resources generated at national economic entities
Ministry of Economy, Ministry of Environment
2007–2010
 
 
 
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