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Lithuania moves to revive renewables growth with sweeping reforms

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Lithuania moves to revive renewables growth with sweeping reforms

The the Lithuanian Parliament (Seimas) has adopted a comprehensive package of legislative amendments prepared by the Ministry of Energy to stimulate renewable energy investment, reduce regulatory barriers and strengthen Lithuania’s energy security.

The amendments to the Law on Energy, the Law on Electricity and the Law on Energy from Renewable Sources respond to changing market conditions and a significant slowdown in new renewable energy projects.

The government said the amendments introduce more flexible conditions for ongoing energy projects, enabling developers to adapt their investments to evolving market circumstances. Developers holding valid permits will be able to extend project development timelines by up to 48 months and change the nature of their planned investments, including switching between electricity generation, energy storage and electricity consumption projects.

This flexibility will be available for a limited period, with developers given one year to decide on their projects’ future. Those choosing to postpone or modify projects will be required to provide an additional bank guarantee. To ease financial pressures, the performance guarantee payable to network operators will be halved, from €50 ($56.3)/kW to €25/kW. Additional administrative simplifications will further reduce barriers to project implementation.

The reforms also remove permitting requirements for renewable energy communities and citizen energy communities developing installations of up to 100 kW under the so-called prosumer park model. From 1 November 2026, these communities will no longer need permits to develop generation capacity or produce electricity.

The legislation also revises the distribution of renewable energy generation levy payments to residents near power plants.


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