Lithuanian energy policy in 1990—2009 and the prospects of its development until 2020

Abstract

Key words: energy, energy strategy, European Union, liberalisation of energy markets, global energy market, energy efficiency.After the dissolution of the Soviet Union, Lithuania inherited a strong power industry, the capacity of which surpassed the internal needs of the country: power plants of a total capacity of 5.5 mln kW, oil refinery designed to process 10 mln tons of oil per year, and a developed gas distribution network. More than a half of the republic's population enjoyed the benefit of central heating.Furthermore, Lithuanian energy is connected with the common energy system of the Baltic States, Belarus, and Russia. It might be called the positive balance of the heritage.But the republic's energy system found itself in a state of a consumer who is not used to taking into account the energy costs, while the whole infrastructure was designed in view of cheap energy usage. Energy was supervised by state monopolies and managed by rather conservative, reform-shy administrators. The situation also deteriorated due to the lack of primary energy sources in Lithuania: with the exception of an insignificant amount of coal, all of them (oil, gas, nuclear fuel) were imported from a single country -Russia. The share of local renewable energy sources was approximately 3%.The political and economic leaders of the country faced very difficult problems in the field of energy. Ensuring stable power delivery to all consumers -manufacturing indsutry, transport, agriculture, and public utilitieswas on the top of agenda.At the same time, it was urgent not only to solve practical problems related to power supply but also to form an energy policy and strategy for the next 10-20 years. In the conditions of changes both in the country and abroad it was extremely difficult. The economic reform, the rupture of economic connections with former partners, and, above all, a deep economic crisis led to a sharp decrease in energy demand. So, the consumption of primary energy resources in the republic, which, in 1991, amounted to 17.5 mln tons of oil equivalent dropped to 8 mln tons (pic.1). The power ( fig. 2) and central heating ( fig. 3) consumption reduced quite as much.

Problems of Prioritization National Security interest of Energy import-dependent States (Case studies: Georgia and Lithuania)

“…It should be mentioned that during the Soviet period, the energy system of Lithuania, similar to other Soviet republics, was managed from Russia and, at the same time, it depended on Russian imports by 98% (World Bank, 1994). The post-Soviet period economic crisis significantly hampered the import of the energy resources from Russia and Lithuania faced serious energy crisis starting from the 1990s (Vilemas, 2010). The mentioned import-dependence on Russia lasted for another decade.…”

“…By cooperating with the EU, critical energy security tasks were identified, which implied gradual integration of the Baltic States named as -the energy island‖ into the energy system of the EU. Promoting use of the local energy resources and implementing energy efficient measures, together with energy market liberalization actions, Lithuania significantly improved energy security environment of the country (Vilemas, 2010). As a result of this action and with strong institutional and financial support from the EU, by 2009, Lithuania managed to achieve significant energy independence from Russia (Janeliunas, 2020).…”

Perfect Compliance? Nuclear Power in Central and Eastern Europe and the EU Membership

“…Lithuania had several motives not to fulfil the requirement to shut down its NPP: the step meant a risk of the country’s energy security deterioration as the power plant generated a significant share of total electricity production (up to 87.1%; Vilemas 2010 ), the country was able to export surplus of (cheap) electricity to Latvia and Kaliningrad, and it was clear that the electricity mix would change making Lithuania more dependent on Russian natural gas (Mišík and Prachárová 2016 ). Public debate in Lithuania articulated the question whether it was worth “sacrificing” the power plant in exchange for EU membership ( Baltic Times 2002 ), however, the political discourse primarily focused on the financial support from the EU (Vilpišauskas 2003 ).…”