Lithuania adopts reforms to boost renewable energy investment

The Lithuanian Parliament, known as the Seimas, adopted a package of legislative amendments to encourage renewable energy investment and improve energy security.

The Ministry of Energy prepared these changes to the Law on Energy, the Law on Electricity, and the Law on Energy from Renewable Sources to address a slowdown in new project developments. The government said the new rules offer developers more flexibility to adapt to market changes.

Developers with valid permits can now extend their project timelines by up to 48 months and switch the nature of their investments between electricity generation, energy storage, and electricity consumption. To lower financial hurdles, the government halved the performance guarantee payable to network operators from €50 to €25 per kilowatt. The reforms also remove permitting requirements for renewable energy and citizen energy communities building installations up to 100 kW under a prosumer park model.

Starting 1 November 2026, these communities will not need permits to produce electricity. Additionally, the law changes how renewable energy generation levy payments reach residents near power plants by basing allocations on individual residences instead of households. The legislation requires electricity and gas operators to keep reserves of critical equipment to restore supply after technical failures or physical interference.

It also clarifies the roles of the National Energy Regulatory Council, the Lithuanian Energy Agency, and the National Cyber Security Centre in protecting infrastructure. These measures also include penalties for methane emission violations and restrictions on Russian gas imports to align with EU rules.