Martynas Giga. On the way to the solar energy breakthrough, we lost our common direction

Lithuania has set a goal to be completely self-sufficient in electricity from renewable resources, mainly wind and solar, by the 2030s. We have government programs, an energy strategy, a breakthrough package, and we are the world leader in the pace of solar energy development. It would seem that the goal is clear, and there are means to achieve it. But why then, moving towards it, do we keep putting sticks in our own wheels and diverting from the straight path to false paths and dead ends?

in 2020 The government program emphasized that “in order to increase local electricity generation, we will first develop electricity production from renewable energy sources – wind and solar”. A very important word in this endeavor is “we will develop”. He seems to assume that we will all work together, discuss, cooperate and look for the best solutions.

It is sad, but we have to admit that this “development” is often dealt with quietly and without the involvement of all interested parties. This is what happened with the postponement of liberalization and the unconstitutional 2 gigawatt (GW) total solar energy quota. There is a lack of dialogue and constructiveness even now when dealing with the issue of losses generated by generating consumers for electricity suppliers.

“Breakthrough” in pulling the brake on 2 GW

2022 is the turning point of the energy transformation. became the crisis of energy resources caused by the Russian war. This event led to a fundamental change in energy and created a strong signal to invest in renewable energy resources (RES). In the same year, the renewable energy “breakthrough package” was adopted in Lithuania. And along with it, the 2 GW total installed capacity limitation for commercial solar power plants, which has upset the entire solar energy market.

At the time, no one fully understood why exactly the 2 GW limit was chosen, even though the real capacity of the network is higher. One thing was clear to everyone – the implementation of projects, construction, development of solar energy stopped and became frozen. The lack of communication took the 2 GW issue all the way to the Constitutional Court (CT). Last November, the Supreme Court noted that such a restriction on commercial solar power plants is against the Constitution.

Even after this decision, a common position was not reached – the Ministry of Energy justified the unconstitutional decision that froze the development of solar energy by claiming that it protected the right of future producing consumers to install solar power plants. Business and society were pitted against each other.

The three-body problem

The sci-fi series “3 Body Problem” is currently generating high volumes of views on the Netflix platform. Similarly, the current situation of electricity suppliers, non-domestic generating consumers and institutions could be described in terms of non-renewal contracts and accounting systems in kilowatt-hours (net-metering) applied to generating consumers.

Electricity suppliers say that the net-metering scheme is unsustainable, it was suitable as long as there were few generating consumers. Now, as their number has increased, market participants are experiencing significant losses. This scheme needs to be changed to net-billing.

Consumers say – it suits us as it was, we want to get kilowatt-hour for kilowatt-hour. It doesn’t matter that kilowatt-hour prices are different day and night, summer and winter. This is like the exchange of litas into euros – the user wants a one-to-one ratio, not according to the actual value.

The authorities say that you, the suppliers, have no right not to renew the contracts. If you are really making losses, calculate them and show them to us.

We have calculated, submitted. What’s next? What are we waiting for this time? After all, even without calculations, it should be clear that no electricity supplier will refuse a contract with a generating consumer if it is at least somewhat profitable for him.

In this “three-body problem”, we again miss a constructive dialogue involving all interested parties. And he could quickly shake up the current situation.

What do we need?

First of all, open communication and cooperation. We also submitted our proposals to the responsible institutions regarding the introduction of the net settlement model in the country, but so far there is little general discussion on this issue. It is too little for us to be able to effectively solve the emerging challenges.

Second, we do not need compensation or damages for the past period. We are not asking for it. We are talking about a clear future and we are asking for a net-billing scheme.

And she according to the currently valid provisions, it will be mandatory for non-domestic consumers only from 2031. January 1 Consequently, electricity suppliers will have to bear the loss of generating consumers for another 7 years. There are no indications at all for residents as to when we will turn in the direction of net billing. The current scheme is unsustainable and suppliers are forced to find ways to deal with it themselves. Our proposal is to accelerate the introduction of the net billing model for producing users.

We are convinced that the development of solar energy is particularly important for Lithuania, which aims to secure its energy independence. The number of solar power plants will only increase, which will lead to the price of the electricity they produce getting closer and closer to 0 euros per kilowatt hour.

The transition to the “net-billing” payment scheme would not only be based on the good practice of other European countries, but would also be fairer for both the supplier and the consumer, as the mutual payment takes place according to market conditions. Price differences that arise at the moment, when the generating user produces cheaper energy than he later consumes, must be covered either by suppliers or other users.

This is not correct.

Therefore, solutions and dialogue are needed today if we are to achieve our solar energy goals.

About the company:

“Elektrum Lietuva” is a subsidiary company of Latvenergo (Latvia), the largest green electricity producer in the Baltic States, providing various energy solutions to household and business customers in Lithuania. More than 70 percent Electricity produced by “Latvenergo” comes from renewable sources. The company “Elektrum Lietuva” currently supplies electricity to more than 12 thousand companies, more than 211 thousand chose the company as their electricity supplier. households, the company supplies gas to almost 800 companies, has installed over 2,000 solar power plants and six solar parks (29.6 MW). New solar and wind parks with a total capacity of over 300 MW are under development.