New 800 mln. EUR support package: the most vulnerable residents can be supplied with electricity for free Business

“This is one of the largest support measures in the history of Lithuania,” Finance Minister Gintarė Skaistė said at the press conference.

206.6 million was allocated for the financing of energy communities. of the state budget funds of the Republic of Lithuania. The solution being developed will enable the financing of energy generation capacities for municipalities, municipal institutions, companies and households living in poverty. Part of the capacity of the installed or purchased power plant will have to be transferred to persons experiencing energy poverty, thus reducing the electricity bills of these persons.

The scheme will work as follows – “INVEGA” will be approached for the construction or purchase of solar and wind power plants by the Energy Community, which can be formed by the municipality, its companies or institutions.

In order to purchase electricity production capacity, such a community can expect up to 100 percent. loans with up to 50% seeking grant. The duration of the loan will be up to 15 years, and the interest rate will be 3 percent.

A prerequisite is at least 30 percent. purchased resources will have to be assigned to persons experiencing energy poverty.

As stated by the Minister of Energy Dainius Kreivys, the power plant itself, as a physical object, would not be assigned to the housing of a resident experiencing poverty – the generated power would be assigned to it. The order also provides for more fuses.

“When a person falls out of the scheme, another person automatically steps up and gets that free or almost free electricity,” said D. Kreivys.

Those people who meet the requirements set out in the Cash Social Support Law or have the right to social support will be able to apply for such support, G. Skaistė said.

“It will depend on how much you consume [elektros]. It will be mandatory to assign at least 1 kW, which is almost 100 percent. corresponds to what the average person consumes. If it uses a little more, it is possible that the rated power will be a little too low. It will depend on how much the specific energy community will allocate power to a specific user”, said G. Skaistė.

The supplier will receive compensation for the resident, and the person will not have to pay.

At least 1 kW of installed electrical capacity must be allocated to one needy person. The compensation will be allocated to the electricity supplier, said D. Kreivys. There are over 120,000 such people in Lithuania, the ministry estimates.

The major part of the support package presented on Thursday will be intended for legal entities.

549 million has been allocated for the financing of renewable energy resources (RES) for legal entities. EUR funds of the “New Generation Lithuania” plan and 22.6 million of the state budget funds of the Republic of Lithuania. Investments in electricity generation facilities from renewable energy sources (installation, construction or acquisition of solar and wind power plants from the park) will be financed.

Loans will be provided to producing consumers or to private and public legal entities seeking to become producing consumers.

The proposed financing solution will allow borrowing for a period of up to 15 (for solar power plants) and up to 20 (for wind power plants), the interest rate will not exceed 3 percent. Public legal entities can expect to receive up to 100 percent. loan financing, private legal – 80 percent. The measure is financed by RRF funds.

“The number of producing users is growing very fast, this year we have 28 thousand. producing users and we expect another 30 thousand to join this year. of producing consumers”, said D. Kreivys.

Applications for financing of RES legal entities can be submitted to INVEGA through the electronic application system from March 28, 1 p.m.

INVEGA intends to announce the call for applications for the financing of energy communities in April.

Renewable energy in Lithuania has more than tripled in three years: from 699 MW in 2020 to up to 2.33 GW in 2023, and the number of producing consumers – businesses and residents who obtain electricity from their own power plants has already exceeded 90 thousand

The total amount of support from the Ministry of Energy this year will be about 1.5 billion. 135 million euros will be allocated to residents. euros. Most of them, 85 million will be allocated for the purchase of solar and wind power plants. Of them, 20 million EUR has already been distributed, the remaining amount will be distributed in the course of this year.

Investments in energy storage devices (batteries), further development of private electric car charging stations, hydrogen production and renovation of public buildings will also be encouraged.