ENERGETIKA

ISSN for PRINT: 0235-7208

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2004, Volume1

Issue 4

90 pages

Issue price - $29.00

Vidmantas Jankauskas
Vilniaus Gedimino technikos universiteto Verslo vadybos fakultetas, Saulëtekio al. 11, LT-10223 Vilnius, Kauno humanitarinis fakultetas, Muitinës g. 8, LT- 44280 Kaunas

With a growing dependence of the European Union on fuel imports (it imports now about 50% of its energy needs; this figure is forecast to rise to 70% in 2030), a special attention is paid to the promotion of renewable energy. The EU has an ambitious goal: to reach 12% of renewable energy in the primary energy balance and 22% of green electricity in the total electricity consumption by 2010. Analyses of the recent trends and developments have shown considerable differences among member states: Denmark, Finland, Germany and Spain have initiated energy policies that should allow them to achieve their planned targets; the majority of other countries (including new ones) have also started implementing policies supporting renewables in order to reach the targets; only a few countries need to revise their policies.
The main support mechanism for green electricity in the EU member states is feed-in tariffs, where all renewable energy injected into the network is automatically dispatched and receives a guaranteed price set above normal market prices. The costs of this obligation are then passed on to customers, usually through transmission tariffs. Green certificates, the instrument gaining more support within EU, are issued to green electricity producers and sold to the suppliers at market prices, as every supplier has an obligation to buy a certain amount of green certificates. This support is market-oriented and introduces competition among renewable energy producers. As green certificates could be traded internationally, this support scheme is preferential in developing a common European electricity market.
Analyses have shown that direct support to green electricity producers has already reached 3.3 bln. Euro in the EU-15; if the same promotion schemes are left, in order to meet the targets set by the Directive 2001/77/CC, EU-15 will spend in 2010 around 11.5 bln. Euro additionally to support green electricity producers. The tradable green certificates scheme may reduce this burden.
Lithuania has set in its National Energy Strategy a target to reach 12% of the renewables in the primary energy supply and 7% of green electricity in the total electricity consumption by 2010. The main increase in the green electricity production is envisaged to come from the wind power plants.
Rather high feed-in tariffs are set to support electricity produced from wind, biomass or at small hydro plants. On the other hand, the Government of Lithuania has established a plan for a smooth increase in the green electricity production in order to reach the 2010 target. With the current support scheme Lithuanian customers will pay 100 MLt additionally in 2010 to support the green electricity production. In order to introduce a more market-oriented support scheme, the Government has already declared a switch towards green certificate schemes in 2010.

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