For Strengthening of Lithuania's Energy Independence – Additional EUR 194 Million from the EU Budget
Today, the Council of the European Union and the Parliament officially approved the "REPowerEU" regulation, according to which Lithuania is provided with a new EUR 194 million grant aimed at strengthening the resilience, security and sustainability of the energy system.
The "REPowerEU" initiative presented by the European Commission on 18 May 2022 aims to reduce the European Union's (EU) dependence on Russian gas and oil imports, which are used as an economic and political weapon in the face of the war in Ukraine. In the fight against the energy price crisis, the aim is to accelerate the EU's green transition – to diversify energy suppliers and production sources, to increase the share of renewable energy resources and to promote energy efficiency and saving.
"We welcome the REPowerEU decision that has come into force, which will help the whole of Europe to get rid of dependence on Russian energy imports faster. Within the framework of this initiative, Lithuania will receive an additional EUR 194 million grant from the EU – we will direct these funds to the country's green energy. The Government has set ambitious goals to produce all the electricity consumed in Lithuania from renewable resources by the end of the decade and to become an electricity exporting country. This requires significant investments," noted Minister of Finance Gintarė Skaistė.
The Ministry of Finance is currently supplementing the plan "New Generation Lithuania" in order to include a special "REPowerEU" section in it. The updated plan foresees the use of additional funds of the "REPowerEU" initiative and the borrowing option provided by the Economic Recovery and Resilience Facility and investing about EUR 1 billion more in energy independence, renewable energy resources and energy efficiency.
The possible measures aimed at promoting the green transition of Lithuania include the development of energy production from renewable resources, the development of energy infrastructure networks, increasing the efficiency of energy consumption in buildings, decarbonisation of industry, support for clean transport, etc.
Please note that in December 2022 a public consultation was already held (https://epilietis.lrv.lt/lt/naujienos/vyksta-viesoji-konsultacija-del-naujos-kartos-lietuva-plano-keitimo) on supplementing the plan "New Generation Lithuania" with the new investments.
The plan "New Generation Lithuania" (https://finmin.lrv.lt/lt/es-ir-kitos-investicijos/naujos-kartos-lietuva) is prepared taking into account the programme of the eighteenth Government and the National Progress Plan for 2021-2030 as well as other national strategic planning documents. It provides EUR 2.225 billion worth of reforms and investments in 7 areas: green transition, digitalization, education, health, social security, innovation and science, transformation of the public sector.
Last updated: 06-03-2023
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