LITHUANIAN RENEWABLE ENERGY
AUCTION SYSTEM
Dovilė ALMANYTĖ Ministry of Energy
Renewable energy unit January 2019
RES IN THE NATIONAL ENERGY STRATEGY
2020 2030
3 TWh
5 TWh
7 TWh
2025
30% 38% 45%
Most of RES energy by 2030 - wind 53% and solar 23%
▪ Gradual integration into the market
▪ Lowest burden for consumers
▪ Compettive support allocation PRINCIPLES:
RENEWABLE ELECTRICITY PRODUCTION
Technology Target in the LAW
Installed capacity
Production
2017 Target by 2020-2025
WIND 500 MW 533 MW 1358 GWh (55,8%)
Production:
2,4 TWh → 5 TWh Capacity:
854MW→1300-1700MW
SOLAR PV 10* MW 88** MW 68 GWh (2,8%) HYDRO 128 MW 128 MW 574 GWh (23,6%)
BIOGAS
105 MW 105 MW 360 GWh (14,8%) SOLID BIOFUEL
2,4 TWh
854 MW TOTAL:
*power plants up to 30 kW not included
** power plants up to 30 kW included
RES ELECTRICITY SUPPORT DESIGN
▪ Technology neutrality, all capacities
▪ Market premium
▪ Compettive support allocation - auctions
▪ 12 years support
▪ Balancing responsibility for producers (up to 500 kW)
▪ Producers pays 100% connection costs
▪ Fixed amount of supported energy – fine for no delivery
▪ Winning criteria – lowest offered premium
▪ Selling into market or bilateral agreements - no mandatory purchace
▪ Security of discharge of obligations fee
▪ Only new installations
▪ Decommissioning MAIN FEATURES:
SUPPORT MECHANISM AND PAYMENTS
Determined for each auction and applied for all support period.
Determined for each auction - indicates future electricity market price, used to determine the maximum premium
Maximum premium Reference price
Ceiling price
Cannot be higher than difference between the ceiling and reference prices.
Payments - depending on the day- ahead market price in the spot:
• Full premium won in the auction
• Part of the premium
• No premium at all
REQUIREMENTS TO ENTER THE AUCTION
Not in a process of bankruptcy or liquidation
Paid taxes and social insurance fees
Not criminal or have previous conviction
No permits or connection conditions previously issued
Confirmation to bare balancing responsibility if >=500 kW
Confirmation about new installations
Paid auction fee
MAIN REQUIREMENTS FOR THE COMPANY:
REQUIREMENTS TO ENTER THE AUCTION
Letter of intent with grid operator
Paid obligations fee – 15 EUR/kW
Spatial planning decrees – decision by the
municipality administration
Preconditions of connection
Request to sign letter of intentions
Signing letter of intentions
Submitting obligation fee
Participation in the auction or request of
development permit
30 c. days
10 c. days
30 c. days
RESPONSIBILITY TO DELIVER
▪ Fixed supported amount- set in auction
▪ Production evaluated on a 3-year average
▪ 20% allowed deviation
▪ Technical issues and force major excluded
Example:
Auction winner amount per year 300 GWh.
Amount per 3 years 900 GWh.
Allowed deviation 20% =180 GWh.
Penalty 20 GWh x winning premium
KWh KWh KWh
1y 2y 3y
Case 1 Case 2
3 year average, GWh 800 700
Deviation, GWh 100 200
Deviation 11% 22%
180 days
90 days
3+1 years
AVERAGE PROJECT TIMELINE
Letter of intentions, security fee
Auction announcement
Auction winner Permits First kWh
Permits:
1) To develop capacities- 3 years+ 1 year extension 2) To produce electricity
NEXT STEPS. FIRST AUCTION
300 GWh VOLUME:
ANNOUNCEMENT: 2019.09.02
Auction date
2019.06.01 ANNOUNCEMENT:
Reference price Ceiling price
1
3
2019.05.01 METODOLOGIES:
Reference price Ceiling price
2
NEXT AUCTIONS- SCHEDULE
October 2019 3 year schedule to be adopted by the Government by
Period : 2020-2022
Content: quantity, budget, dates
700 GWh?
700 GWh?
700 GWh?
2022 2021 2020
VISION:
THANK YOU!
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