Energy Saving Policy Development in Lithuania

Panel: Panel 1: Energy Efficiency policies, programmes and their links

Author:
Vidmantas Jankauskas, Lithuanian Energy Institute

Abstract

Experience in implementation of the first National Energy Efficiency Programme is analysed, its drawbacks and achievements are discussed. The newly revised and approved Programme is analysed.

Energy conservation and improvement of energy efficiency became very important issues with increased energy prices in Lithuania in 1992. During the following four year period an institutional structure for implementation of the first National Energy Efficiency Programme was established and several Governmental Decrees stimulating implementation of various proposed steps were passed.

Installation of energy meters (district heating, hot and cold water and also of gas) created incentives for the consumers to save energy as it directly impacted their energy bills. Therefore, the majority of residential consumers installed gas and water meters and district heat meters were installed in half of multifamily houses. Significant step was made in a broader use of local energy resources, mostly wood and wood waste.

Nevertheless, potential for energy saving in Lithuania is still big, but requires significant investments. For example, insulation of the living houses would enable to save up to 45% of the heat energy used for heating of these houses. But it requires investments of $5,5 billion and the payback period could reach 29 years. Therefore, more realistic are measures which need lower investments and have a shorter payback period.

In order to utilise at least a part of this potential a revised National Energy Efficiency Programme was completed in 1996. It evaluated drawbacks and achievements of the previous Programme and proposed the legal, institutional and regulatory background for implementation of the revised Programme.