National Energy and Climate Action Plan of the Republic of Lithuania for 2021-2030

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National Energy and Climate Action Plan of the Republic of Lithuania for 2021-2030 NATIONAL ENERGY AND CLIMATE ACTION PLAN OF THE REPUBLIC OF LITHUANIA FOR 2021-2030 NATIONAL ENERGY AND CLIMATE ACTION PLAN ABBREVIATIONS BEMIP Baltic Energy Market Interconnection Plan BENTE Baltic Energy Technology Scenario Study BRELL Belarus, Russia, Estonia, Latvia and Lithuania CBSS Bio-generation development cluster CEF Connecting Europe Facility CEN Continental European Networks CO2 Carbon dioxide DH District heating DSO Distribution system operator ELLI Enhancement of Latvia-Lithuania interconnection ENTSO-E European Network of Transmission System Operators (electricity) EPM Existing policies and measures ETS Emissions Trading System EU European Union FSIS Family Support Information System GDP Gross Domestic Product GHG Greenhouse gases GIPL Gas Interconnection Poland-Lithuania GIS Geographical information system GWP Global warming potential HFCs Hydrofluorocarbons HHI Herfindal - Hirschman index HVDC High-voltage direct current ICE Internal combustion engine Ignalina NPP Ignalina Nuclear Power Plant Inčukalns PDS Inčukalns Underground Gas Storage IPCC Intergovernmental Panel on Climate Change IPS/UPS Electricity transmission network operating in part of CIS countries and Baltic countries IS Information systems IT Information technologies KCP Kaunas Cogeneration Plant ktoe Thousand tonnes of oil equivalent LitPol Link Lithuania-Poland electricity interconnection LNG Liquefied natural gas LOLE Loss of Load Expectation LULUCF Land use, land use change and forestry MWh Megawatt hour N/A Not applicable 2 NATIONAL ENERGY AND CLIMATE ACTION PLAN NCCP National climate action plan NEIS National Energy Independence Strategy NordBalt Submarine power cable between Lithuania and Sweden NOx Nitrogen oxides PPM Planned policies and measures PSPP Pumped storage power plant RDI Research, development and innovation RES Renewable energy sources RES-E RES-Electricity RES-T RES transport RGMCG Regional Gas Market Coordination Group RL Republic of Lithuania SOx Sulphur oxides t CO2 e Tonne of carbon dioxide equivalent TS Transformer substation TSO Transmission system operator TWh Terawatt hour UNFCCC United Nations Framework Convention on Climate Change UNFCCC United Nations Framework Convention on Climate Change VCP Vilnius cogeneration plant 3 NATIONAL ENERGY AND CLIMATE ACTION PLAN CONTENTS Abbreviations .................................................................................................................................................. 2 1. OVERVIEW AND PROCESS FOR ESTABLISHING THE PLAN ...................................................................... 6 1.1 Summary ......................................................................................................................................... 7 1.2 Overview of the current policy situation ..................................................................................... 12 1.3 Consultations, involvement of national and Union entities, and the outcome of consultations 18 1.4 Regional cooperation in developing the plan ............................................................................... 22 2. NATIONAL OBJECTIVES AND TARGETS ................................................................................................. 24 2.1 Dimension Decarbonisation ......................................................................................................... 25 GHG emissions and removals ............................................................................................... 25 Renewable energy ................................................................................................................ 27 2.2 Dimension Energy efficiency ........................................................................................................ 36 2.3 Dimension Energy security ........................................................................................................... 38 2.4 Dimension Internal energy market ............................................................................................... 42 Electricity interconnectivity .................................................................................................. 42 Structure of energy transmission ......................................................................................... 43 Market integration ............................................................................................................... 44 Energy poverty ...................................................................................................................... 45 2.5 Dimension Research, innovation and competitiveness ............................................................... 47 3. POLICIES AND MEASURES ..................................................................................................................... 54 3.1 Dimension Decarbonisation ......................................................................................................... 54 GHG emissions and removals ............................................................................................... 54 Renewable energy .............................................................................................................. 111 Other elements of the dimension ...................................................................................... 131 Energy poverty .................................................................................................................... 133 3.2 Dimension Energy consumption ................................................................................................. 139 3.3 Dimension Energy security ......................................................................................................... 148 3.4 Dimension Internal energy market ............................................................................................. 154 Electricity infrastructure ..................................................................................................... 154 Energy transmission infrastructure .................................................................................... 155 Market integration ............................................................................................................. 157 3.5 Dimension Research, innovation and competitiveness ............................................................. 170 4 NATIONAL ENERGY AND CLIMATE ACTION PLAN 4. CURRENT SITUATION AND PROJECTIONS WITH EXISTING POLICIES AND MEASURES, ...................... 177 4.1 The projected evolution of the main external influences on the energy system and GHG emissions .................................................................................................................................................... 178 4.2 Dimension Decarbonisation ....................................................................................................... 185 GHG emissions and removals ............................................................................................. 185 Renewable energy .............................................................................................................. 202 4.3 Dimension Energy efficiency ...................................................................................................... 211 4.4 Dimension Energy security ......................................................................................................... 215 4.5 Dimension Internal energy market ............................................................................................. 220 Electricity interconnectivity ................................................................................................ 220 Energy transmission infrastructure .................................................................................... 221 Electricity and gas markets, energy prices ......................................................................... 227 4.6 Dimension Research, innovation and competitiveness ............................................................. 231 5. IMPACT ASSESSMENT OF PLANNED POLICIES AND MEASURES ......................................................... 239 5.1 Impact of planned policies and measures on the energy system and GHG emissions .............. 240 GHG emissions and removals ............................................................................................. 240 Energy sector: Dimension renewable energy and energy efficiency… ............................................................................................................................................266 5.2 Impact of planned policy measures on macroeconomic indicators ........................................... 275 Impact of planned policy measures on macroeconomic indicators ................................... 275 Impact of planned policy measures on air pollution .......................................................... 277 5.3 Overview of investment needs ................................................................................................... 279 5.4 Impact of planned policies and measures on other Member States and regional cooperation ................................................................................................................................ 282 5 KEY: SECTION A: NATIONAL PLAN 1. OVERVIEW AND PROCESS FOR ESTABLISHING THE PLAN 1. OVERVIEW AND PROCESS OF ESTABLISHING THE PLAN SECTION A 1.1 Summary Political context Lithuania has drawn up a National Energy
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