The Investment Environment for Renewable Energy Development in Lithuania: The Electricity Sector

• Authors: Saulė Milčiuvienė , Julius Paškevičius
• Languages of publication: EN

Abstracts

EN

The article analyzes the investment environment in renewable electricity generation capacities, evaluating the credibility of long term renewable energy targets, the stability of promotion schemes and the impartiality of national administrative procedure. The article explores two main questions: (i) are the EU and Lithuanian energy policy targets and promotion schemes credible enough to convince private investors to put their money in renewable energy development; (ii) does national administrative procedure put a disproportional burden on renewable energy investors or on certain group of investors? The assessment of the investment environment includes a large number of criteria, but we analyze three of them: the stability of long term strategy; the attractiveness of promotionmeasures; and the simplicity and transparency of administrative procedure. Two further criteria are investigated: the stability of targets in renewable energy and the stability of promotional measures. The greatest uncertainty for investors occurs because of constantly changing support schemes of renewable energy sources-schemes that are not harmonized among the member States. At the national level the main driver in the development of small generators is the feed-in tariff. However, the high feed-in tariff does not always guarantee the smooth development of small scale generators of renewable energy.

Keywords

EN

Long term targets; promotion schemes; administrative procedure; renewable energy; national precedures

• Publisher: Sciendo
• Journal: Baltic Journal of Law & Politics
• Year: 2014
• Volume: 7
• Issue: 1
• Pages: 29-48

Dates

published

2014-06-01

received

2014-02-17

accepted

2014-02-17

online

2014-10-08

Contributors

author

Saulė Milčiuvienė

• Associate Professor, Head of Private Law Department, Ph.D. Vytautas Magnus University, Faculty of Law (Lithuania) Contact information Address: Ozeskienės str. 18, Kaunas 44254, Lithuania

author

Julius Paškevičius

• Law Student Vytautas Magnus University, Faculty of Law (Lithuania) Contact information Address: Ozeskienės str. 18, Kaunas 44254, Lithuania

References

• 1. Ališauskaitė-Šeškienė, Ilona, and Dalia Štreimikienė. “Evaluation of external costs of electricity generation technologies in Lithuania.” Energy Vol. 59, No. 1 (2013): 11-19.
• 2. Barquin, Julian, Riccardo Fagiani, and Rudi Hakvoort. “Risk-based assessment of the cost-efficiency and the affectivity of renewable energy support schemes: Certificate markets versus feed-in tariffs.” Energy policy Vol. 55 (2013): 648-661.
• 3. Bida, Amel, Hatem Elrefaei, Mohab Hallouda, and Mohamed Elsobky. “Renewable energy market competence index part 1: The methodology.” Renewable energy Vol. 53 (2013): 400-412.[WoS]
• 4. Böhringer, Christoph, Thomas F. Rutherford, and Richard S. J. Tol. “The EU 20/20/2020 targets: an overview of the EMF22 assessment.” Energy economics Vol. 31, No. 2 (2009): 268-293.[WoS]
• 5. Bozsoki, Ingrid. “Electricity promotional in Germany. RES LEGAL European Commission.” (2013) // http://www.res-legal.eu/search-bycountry/germany/summary/c/germany/s/res-e/sum/136/lpid/135 (accessed January 14, 2014).
• 6. Capros, Pantelis, Ger Klaassen, Leonidas Mantzos, Leonidas Parousos, Nikolaos Tasios, and Tom Van Ierland. “Analysis of the EU policy package on climate change and renewables.” Energy policy Vol. 39, No. 3 (2011): 1476-1485.
• 7. Consolidated Version of the Treaty on the Functioning of the European Union. Official Journal, 2008, C 115/50.
• 8. Davies, Lincoln L. “Reconciling renewable portfolio standard and feed-in tariffs.” Utah Environmental Law Review Vol. 32, No. 2 (2013): 311-361.
• 9. Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market. Official Journal, 2001, L 283.
• 10. Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels or other renewable fuels for transport. Official Journal, 2003, L 123.
• 11. Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC. Official Journal, 2009, L 140/52.
• 12. “Energy 2020 A strategy for competitive, sustainable and secure energy” (2010) // http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52010DC0639:EN:HTML: NOT (accessed January 14, 2014)
• 13. “Financing renewable energy in the European energy market” (2011) // http://ec.europa.eu/energy/renewables/studies/doc/renewables/2011_financing_renewable.pdf (accessed January 14, 2014).
• 14. Fuinhas, José A., and António C. Marques. “Drivers promoting renewable energy: A dynamic panel approach.” Renewable and sustainable energy reviews Vol. 15, No. 3 (2011): 1601-1608.
• 15. Green Paper. “A 2030 framework for climate and energy policies” (2013) // http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52013DC0169: EN:NOT (accessed January 14, 2014).
• 16. Grid Operating Rules for Electricity Producers. Official Gazette,2012, no. O3-159.
• 17. “Guidance Note on Financial Engineering Instruments under Article 44 of Council Regulation (EC) No 1083/2006” (2011) // http://ec.europa.eu/regional_policy/archive/funds/2007/jjj/doc/pdf/cocof_guidance_note3_en.pdf (accessed January 14, 2014).
• 18. Haas, Reinhard, Christian Panzer, Gustav Resch, Mario Ragwitz, Gemma Reece, and Anne Held. “A historical review of promotion strategies for electricity from renewable energy sources in EU countries.” Renewable and sustainable energy reviews Vol. 15, No. 20 (2010): 1003-1034.
• 19. Juškys, Andrius. “Renewable energy regulation in European Union Law: development and trends.” Current issues of Business and Law Vol. 7, No. 1 (2012): 183-200.
• 20. Karakauskas, Mindaugas, and Aušra Pažėraitė. “Evaluation of the potential of small business development in the „Green Energy“ sector.” Energy Vol. 58, No. 4 (2012): 186-194.
• 21. Kitzing, Lena, Catherine Mitchell, and Poul Erik Morthorst. “Renewable energy policies in Europe: Converging or diverging?” Energy Policy Vol. 51 (2012): 192-201.[Crossref]
• 22. Konstantinavičiūtė, Inga, and Dalia Štreimikienė. “Lithuanian energy sector development priorities and sustainability indicators.” Environmental Research, Engineering and Management Vol. 1, No. 23 (2003).
• 23. Liang, Jiaq, and Daniel J. Fiorino. “The Implications of Policy Stability for Renewable Energy Innovation in the United States, 1974-2009.” Policy Studies Journal 41 (1) (2013): 97-118.[WoS]
• 24. Mažylis, Liudas, and Aistė Pikšrytė. “EU regulatory policy models` application in the renewable energy sector.” Public policy and administration Vol. 12, No. 1 (2013): 120-132.
• 25. Milčiuvienė, Saulė, and Agnė Tikniūtė. “Legal regulation of renewable energy market.” Jurisprudence Vol. 19, No. 4 (2012): 1495-1513.
• 26. Mormann, Felix. “Enhancing the investors appeal of renewable energy.” Environmental Law Vol. 42 (2012): 681-734.
• 27. National Energy Independence Strategy. Official Gazette, 2012, no. 80-4149.
• 28. Promotional Rules for Renewable Energy Resources. Official Gazette, 2012, no. 827.
• 29. “Proposal for a Directive of the European Parliament and of the Council amending Directive 98/70/EC relating to the quality of petrol and diesel fuels and amending Directive 2009/28/EC on the promotion of the use of energy from renewable sources” (2012) // http://ec.europa.eu/clima/policies/transport/fuel/docs/com_2012_595_en.pdf (accessed January 14, 2014).
• 30. “Renewable energy progress report” (2013) // http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52013DC0175:EN:NO (accessed January 14, 2014).
• 31. “Renewable energy usage forecast for 2010-2020” (2009) // http://www.enmin.lt/lt/activity/...energijos.../Prognoze.pdf (accessed January 14, 2014).
• 32. Republic of Lithuania Law on Energy From Renewable Sources. Official Gazette, 2011, no. 62-2936.
• 33. Republic of Lithuania Law on Financial Institutions. Official Gazette, 2002, no. 91-3891.
• 34. Schmalensee, Richard. “Evaluating Policies to Increase Electricity Generation from Renewable Energy.” Review Environmental Economy and Policy Vol. 6, No. 1 (2012): 45-64.
• 35. Szabó, Sandor, and Arnulf Jäger-Waldau. “More competition: Threat or chance for financing renewable electricity?” Energy Policy Vol. 36, No. 4 (2008): 1436-1447.[Crossref][WoS]
• 36. The National Energy Complex Development Plan. Official Gazette, 1994, no. 30-545.
• 37. Toke, David. “Renewable financial support systems and cost-effectiveness.” Journal of Cleaner Production Vol. 15, No. 3 (2007): 280-287.
• 38. Vasaravičius, Darius. “The analyses of the usages and perspectives of renewable energy sources in Lithuania.” Science - Future of Lithuania Vol. 3, No. 1 (2011): 73-77.

Identifiers

DOI

10.2478/bjlp-2014-0003