Table 6 Overview of legislations and financial instruments for energy sector formation and boosting of forest biomass usage in energy production in Lithuania

Renewable Energy 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 energy sources (RES) and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC [19]. The directive established an overall policy for the production and promotion of energy from RES in the EU. It required the EU to fulfil at least 20% of its total energy needs with renewables by 2020—to be achieved through the attainment of individual national targets. All EU countries must also ensure that at least 10% of their transport fuels come from RES by 2020.

National overall target for the share of energy from RES in gross final consumption of energy in 2020 for Lithuania is 23%.

Renewable Energy Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from RES [20]. The directive aimed at keeping the EU a global leader in renewables and helping the EU to meet its emissions reduction commitments under the Paris Agreement. The new directive establishes a new binding renewable energy target for the EU for 2030 of at least 32%, with a clause for a possible upwards revision by 2023.

Most of the other new elements in the new directive need to be transposed into national law by Member States by 30 June 2021.

In Lithuania, the overall objective for renewables is 45% for 2030, described as renewables share in the final energy consumption—45%, in central heating sector—90%, in transport sector—15%, in the final electricity consumption—45% and renewables share in electricity generation—70%.

The main energy sector development policy is described in the National Energy Independence Strategy [13], which has been approved by Resolution No XI-2133 of the Seimas (Parliament) of the Republic of Lithuania of 26 June 2012 and amended in the year 2018. The main goal of this Strategy is to ensure Lithuania’s energy independence before the year 2020 by strengthening Lithuanian’s energy security and competitiveness. The purpose of the National Energy Independence Strategy is to define the main objectives of the Lithuanian state in the energy sector and to set national targets for the implementation of strategic initiatives until 2020, as well as to lay down guidelines for the development of Lithuania’s energy sector until 2030 and until 2050. The implementation of the Strategy is coordinated by the Ministry of Energy and specified in the Strategy Action Plan.

Lithuania’s energy independence before the year 2020 by strengthening Lithuanian’s energy security and competitiveness.

The Law on Energy of the Republic of Lithuania [24]. This Law establish the main aims of energy activities in the Republic of Lithuania as well as the legal basis of state management, regulation, supervision and control of the energy sector, the general criteria, conditions of and requirements for public relations, and the main areas of state energy policy.

Secure and reliable energy supply. Balanced and sustainable developed the energy sector. Reduced the negative impact of energy activities on the environment. Promoted the use of indigenous and renewable energy sources.

The Law on the Heat Sector of the Republic of Lithuania [26]. This Law shall regulate State management of the heat sector, the activities of the heat sector entities, their relations with heat consumers, their interrelationship and responsibility. Objectives of the Law: (1) to ensure reliable and high-quality supply of heat to heat consumers at minimum costs; (2) to ensure by law effective competition in heat sector; (3) to defend the rights and legitimate interests of heat consumers; (4) to increase the efficiency of heat production, transfer and consumption; (5) when producing heat, to increase the use of indigenous fuel, biofuel and renewable energy resources; (6) to reduce the negative impact of the heat sector on the environment.

Ensured reliable and high quality supply of heat to heat consumers at minimum costs, effective competition in heat sector. Increased the use of indigenous fuel, bio fuel and renewable energy resources. Reduced the negative impact of the heat sector on the environment.

The National Strategy for the Development of Renewable Energy Sources [23], as approved by Resolution No 789 of the Government of the Republic of Lithuania of 21 June 2010 approving the National Strategy for the Development of Renewable Energy Sources. The main objective: by increasing the share of renewable energy resources in the country’s energy balance, to meet energy needs in the electricity, heating and transport sectors to an optimal extent using domestic resources, to phase out imported polluting fossil fuels, and thus to enhance energy security and energy independence and to contribute to international efforts in reducing greenhouse gas emissions. The 2010–2015 Plan of implementing measures for the National Strategy for the Development of Renewable Energy Sources, as approved by Order No 1-180 of the Minister for Energy of the Republic of Lithuania of 23 June 2010 approving the Plan of implementing measures for the National Strategy for the Development of Renewable Energy Sources.

Increased use of RES. The share of RES in the country's gross final consumption of energy would reach at least 23% in 2020.

Law on Energy from Renewable Sources of the Republic of Lithuania [25]. This law establish the legal basis for state administration, regulation, supervision and control of the renewable energy sector of the Republic of Lithuania and organisation of activities in the renewable energy sector, also stipulate the state regulation and supervision of operations of energy grid operators, producers of energy from RES and their relations with controlling authorities. The objective of this law is to ensure the coherent development of energy use from RES, to promote further development and the introduction of new technologies, and the consumption of energy produced, in particular with regard to the international commitments of the Republic of Lithuania, the objectives of environmental protection, saving of fossil energy sources, reduction of reliance on fossil sources of energy and energy import and other State energy policy objectives, taking into consideration energy security and reliability requirements and the principles of the protection of consumer rights and lawful interests in the accessibility, adequacy and sufficiency of RES.

Increased use of RES. The share of RES in the country's gross final consumption of energy would reach at least 23% in 2020 and this share would be further increased.

National Forestry Sector Development Programme 2012–2020 [27]. The purpose of the Programme is to implement the long-term forestry strategy of Lithuania that would be consistent with the policy of other related areas, based on the traditions of the country and the requirements of European Union legal norms, international conventions, resolutions, agreements and programmes, and determine the objectives and tasks for the development of the forestry sector for the period until 2020. One of the tasks of Programme is to balance the volume of thinnings, sanitary and final fellings of forests, and increase the volume of non-merchantable timber and forest felling residues used for biofuel production. One of the target values of the programme is that volume of forest felling residues and non-merchantable timber used for biofuel production will be increase and 500,000 m³ will be produced in 2020.

The 2007–2013 and 2014–2020 Lithuanian Rural Development Programmes [28]. Measures included in the 2007–2013 Lithuanian Rural Development Programme promote the use of RES. Aid intensity varies from 40 to 65% of eligible project costs. The 2014–2020 Lithuanian Rural Development Programme, as approved by Decision No C (2015) 842 of the European Commission of 13 February 2015. One of the activities supported under Measure ‘Modernisation of agricultural holdings’ of the Lithuanian Rural Development Programme for 2007–2013 is the planting of short rotation coppice. Aid to the planting of short rotation coppice may not exceed 434€ per hectare. The aid intensity is up to 50%. Aid for the activity area ‘Planting of short rotation coppice’ may be applied for by natural and legal persons lawfully managing agricultural land.

Measures included in the 2014–2020 Lithuanian Rural Development Programme promote the use of felling waste and biogas. Aid intensity varies from 40 to 65% of eligible project costs.

Investments in forestry technologies (measure of the 2014–2020 Lithuanian Rural Development Programme) facilitating the supply and use of RES, by-products, wastes, residues and other non-food raw material, for the purposes of the bioeconomy.

Support for investments in agricultural holdings. Activities supported under the measure: (1) production of biogas at a livestock farm from farm waste. Biogas and heat and power produced can be used only for the needs of the holding; (2) cultivation of short rotation coppice.

Development of the use of RES.