Country profiles: Lithuania

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Cuntry prfiles: Lithuania Last updated: 27/04/2015 1 Implementatin f Tracking Systems 1.

1 Cuntry prfiles: Lithuania Last updated: 27/04/ Implementatin f Tracking Systems 1.1 Electricity Disclsure Electricity disclsure is implemented thrugh Law N XI-1375 f 2011 f the Republic f Lithuania n Energy frm Renewable Surces with the amendments intrduced in 2013 by the Law n. XII-169. This laws transpse the directive 2009/28/EC, 2009/72/EC and 2009/73/EC t natinal law and establishes the legal framewrk fr administratin, regulatin and cntrl ver the Lithuanian renewable energy sectr. Articles f the Law prvide: An energy supplier shall, in accrdance with the prcedure prescribed in the legislatin and within its remit, prvide its final custmers with infrmatin n the share r the amunt f energy frm renewable surces in the energy supplied by the supplier. This share r amunt f supplied energy shall be calculated n the basis f the amunt f energy frm renewable energy surces fr which a guarantee f rigin has been issued Disclsure Figures N disclsure figures available Envirnmental Infrmatin Infrmatin n CO2 emissins and radiactive waste shuld be disclsed in Lithuania Suppliers Fuel-Mix Calculatins N infrmatin was fund n the fuel mix calculatins carried ut in Lithuania Acceptance f GOs In terms f acceptance and recgnitin f GO the Lithuanian law stipulates: The Republic f Lithuania shall recgnise guarantees f rigin issued by ther Member States exclusively as prf f the elements referred t in Article 28(1) and in paragraph 7 f Article 29 f the RES Law. The Republic f Lithuania may refuse t recgnise a guarantee f rigin nly when it has wellfunded dubts abut its accuracy, reliability r veracity. A decisin n a guarantee f rigin issued by anther Member State shall be adpted by an the cmpetent bdy r institutin authrised t it. The Gvernment r an institutin authrised by it shall ntify the Eurpean Cmmissin f a refusal t recgnise the guarantee f rigin issued by anther Member State and its justificatin. Nevertheless n infrmatin n criteria used fr this assessment is available. 1.2 Guarantees f Origin fr Electricity frm Renewable Energy Surces and High- Efficient Cgeneratin Rules fr the issue f guarantees f rigin fr electricity frm renewable energy surces were apprved by Order N f Minister f Ecnmy n Octber (Valstybes zinis, N , ), (Rules n issue f guarantees f rigin). Amendments t this law were intrduced thrugh the new RES Law n the purpses, issuance, transfer and use f the GO. 1

2 In Lithuania and thrugh the intrductin f the new RES Law GO are issued fr RES-E, RES-H/C and RES-CHP. Within this law, GO are issued: With a view t prviding prf t final cnsumers abut the share f energy, as supplied by the energy supplier, r the amunt which is prduced frm energy frm renewable surces, a unit f electricity prduced frm renewable energy surces and supplied t electricity grids and heat prduced frm renewable energy surces and supplied t the heat supply system shall be issued a guarantee f rigin. GO are prvided t pwer generating cmpanies which are registered in the Database f Certificates f Origin. Fr that a cmpany must submit the request, permit t generate pwer and /r permit t expand pwer-generating capacities. The issuing bdy is the transmissin system peratr, which was at the time f the writing f the legislatin Liettuvs Energija AB, but currently is Litgrid AB. The issuing bdy was appinted t its task thrugh the implementatin f Order N The guarantee f rigin system is fully peratinal, but nt based n EECS. Frm the transmissin system peratr task has been carried ut by cmpany Litgrid. The central registry fr guarantees f rigin was previusly publicly available at Lietuvs Energija 2, but the current registry can be fund at Litgrid s site 3. Statistical infrmatin abut the vlumes 4 and infrmatin abut issuance f RE-GO and CHP-GO 5 are available. Statistics are in Lithuanian and fr kwh f electricity prductin, althugh with the new law they shuld be issued fr each MWh RES-GO and H/C-GO System In terms f GO the Lithuanian law sets: the standard unit f GOs is 1 MWh as ppsed t the previus 1 kwh. the rules n cancellatin are specified s that a GO is cancelled nce it is used. the rle f GOs: demnstrating t the end user that the cnsumed electricity is derived frm renewable surces. GOs are issued in electrnic frm fr electricity, heating r cling. the use f a guarantee f rigin must take place within 12 mnths f prductin f the crrespnding unit f energy. A guarantee f rigin nt used within the specified perid shall be cancelled. Mrever the Law defines that a GO shall specify: the energy type: electricity, heating r cling; the energy surce frm which the energy was prduced and the start and end dates f prductin; the identity, lcatin, type and capacity f the installatin where the energy was prduced; whether and t what extent the installatin has benefited frm investment supprt, whether and t what extent the unit f energy has benefited in any ther way frm a natinal supprt scheme, and the type f supprt scheme and/r supprt measure; the date n which the installatin became peratinal; the date and cuntry f issue and a unique identificatin number GOs are by law clearly distinguished frm renewable energy targets and target flexibility mechanisms. Financially supprted renewable prductin is nt entitled t receive GO. The infrmatin prvided by prducers is checked by the State Energy Inspectrate under the Ministry f Energy. The infrmatin is checked in the curse f scheduled checks as well as at the request f the institutin administering the GO /7

3 1.2.2 CHP-GO System The legislative framewrk fr CHP-GO is in place 6 and it is in line with the requirements f the CHP directive. CHP-GO are issued by Litgrid and the database fr CHP-GOs has been peratinal since May The same database is used as fr RES-GO and H/C-GO EECS N EECS dmain exists GO Statistics Statistics f the issued GO are available in Lithuanian at: N statistics f cancellatins, exprts r imprts culd be fund. 1.3 RES-E Supprt Schemes A detailed list f supprt schemes can be fund in Article 3 f the new law. Main supprt mechanisms are FIT, purchase bligatin and investment supprt. GOs cannt be issued fr financially supprted prductin. 2 Prpsals fr Imprvement f the Tracking System The fllwing prpsals are made in accrdance with the RE-DISS Best Practice Recmmendatins 7 (BPR), which have been agreed by the Participating Dmains f the RE-DISS Prject. 2.1 Prpsals regarding general regulatin n tracking systems Disclsure shuld be mre detailed and EECS GO implemented. 2.2 Prpsals regarding Disclsure BPR [17]: Besides GO, nly Reliable Tracking Systems (which may include cntract based tracking) and the Residual Mix shuld be available fr usage fr disclsure. N ther tracking mechanisms shuld be accepted. BPR [19]: Lithuania shuld clarify whether and under which cnditins the use f GOs by end cnsumers is allwed. Such GO use shuld nt be based n ex-dmain cancellatins perfrmed in ther cuntries. If cnsumers are allwed t use GOs themselves, a crrectin shuld be implemented in the disclsure scheme which cmpensates fr any duble disclsure f energy cnsumed. BPR [23,24]: (Other) Reliable Tracking Systems (RTS) shuld be defined where apprpriate based n criteria f added value, reliability and transparency. BPR [25-28]: A residual mix shuld be intrduced in rder t accunt fr untracked cnsumptin and it shuld be calculated accrding t the RE-DISS methdlgy, fllwing the RE-DISS schedule fr RM calculatins. Lithuania shuld cperate with the RE-DISS prject in the calculatin f the Eurpean Residual Mix Versin 2.2, August /7

4 BPR [29, 30, 32]: It is imprtant t regulate cntract based tracking clearly since this is much used. BPR [34, 35]: Cancellatins f GO relating t prductin perids in a given year X which take place until 31 March f year X+1 shuld cunt fr disclsure in year X. Later cancellatins shuld cunt fr disclsure in year X+1. This wuld als require revisin f the timeline which currently applies within the cuntry. 2.3 Prpsals regarding RE-GO and CHP-GO BPR [1a, 1b, 2]: The metered prductin perids fr purpses f issuing GO shuld nt be lnger than a calendar mnth. BPR [1b]: Metered prductin perids fr issuing GOs shuld nt run acrss the start and end f disclsure perids. Lnger intervals up t ne year are acceptable fr very small plants, fr example. BPR [2]:If pssible, issuing f GOs shuld be dne DIRECTLY after the end f each prductin perid. BPR [3b]: GOs that have reached this lifetime shuld be cllected int the Residual Mix BPR [4]: An extensin t this lifetime can be granted if a GO culd nt be issued fr mre than [six] mnths after the end f the prductin perid fr reasns which were nt fully under the cntrl f the plant peratr. In this case, the lifetime f the GO might be extended t [six] mnths after issuing f the GO. BPR [5a, 5b]: Cancellatins f GO relating t prductin perids in a given year X which take place until a given deadline in year X+1 shuld cunt fr disclsure in year X. Later cancellatins shuld cunt fr disclsure in year X+1. (In case that disclsure perids differ frm the calendar year (see item [31]), the deadline shuld be defined accrdingly. Deadline is set n 31 March X+1. BPR [6]: The same allcatin rule shuld apply fr expired GO (see item [3]): The date f expiry thus determines the disclsure perid fr which infrmatin frm expired GO will be used. BPR [7]: The implementatin f GO in all cuntries in Eurpe shuld be based n the Eurpean Energy Certificate System (EECS) perated by the Assciatin f Issuing Bdies (AIB). In case that natinal GO systems are established utside the EECS, then EECS shuld at least be used fr transfers between registries. BPR [7a]: The GO system shuld be established accrding t EECS. BPR [7b]: The AIB Hub fr internatinal transfers shuld be used. BPR [8]: Reliable linkages shuld be established with cuntries which are nt EECS members. BPR [9a]: Market participants f the respective dmain shuld be prvided the pssibility t exprt their GOs and thus participate in the Eurpean internal market fr electricity. BPR [9b]: S-called ex-dmain cancellatins f GO, where a GO is cancelled in ne registry and a prf f cancellatin is then transferred t anther cuntry in rder t be used there fr disclsure purpses, shuld nly be used if there is n pssibility fr a secure electrnic transfer and if there is an agreement n such ex-dmain cancellatins between the cmpetent bdies invlved. Statistical infrmatin n all ex-dmain cancellatins shuld be made available in rder t supprt Residual Mix calculatins. BPR [10.2]: Verificatin mechanisms shuld be implemented fr nging cntrl f registered data (e.g.re-audits, randm checks, etc). BPR [10.3]: Crrect accunting f RES share f cmbustin plants shuld be assured by adequate measures such as thse recmmended by the EECS Rules (cf part N5.3.2). BPR [10.4]: The cmpetent bdy can crrect errrs in GOs it has issued befre they are exprted, and is the nly ne with this cmpetence. 4/7

5 BPR [11a]: The GO system shuld be extended beynd RES & cgeneratin t all types f electricity generatin, which shuld all be handled in ne registry. BPR [11b]: GOs shuld be issued fr all electricity prductin, unless an RTS applies fr that prductin, e.g. fr the disclsure f supprted electricity. BPR [11c]: Cmpetent bdies shuld cnsider t make the use f GOs mandatry fr all electricity supplied t final cnsumers. BPR [13.5]: An exprted GO shuld be marked as remved frm the exprting registry. BPR [13.7]: Registries shuld be audited n a regular basis BPR [15b]: GO shuld "ideally" cmbine the functinalities f a RES-GO and a CHP-GO. BPR [16]: In the medium t lnger term, GO shuld be the nly tracking certificate used. Any ther tracking systems f a similar purpse and functin as GO shuld be clsely crdinated with GO and eventually cnverted t GO. 2.4 Prpsals regarding Acceptance f GO Regarding acceptance f GO the fllwing shuld be cnsidered: Within the rules set by the respective Directives, Lithuania shuld cnsider establishing their criteria fr the acceptance f imprted GO fr purpses f disclsure: These criteria shuld address imprts at least frm all EU member states, ther members f the Eurpean Ecnmic Area (EEA) and Switzerland. The parties t the Energy Cmmunity Treaty shuld be cnsidered as well, as sn as GO imprts frm these cuntries becme relevant. The criteria shuld specify the electrnic interfaces, specifying data frmat and cntents f GO t be imprted, which the respective cuntry accepts fr imprts f GO (such as the EECS Hub and any ther interfaces accepted). Cnditins fr the recgnitin f GO frm ther cuntries shuld be that they were issued based n Art. 15 f Directive 2009/28/EC r cmpatible natinal legislatin, and that they meet the explicit requirements set in Art. 15, e.g. regarding the infrmatin cntent f the GO. The recgnitin f GO frm ther cuntries shuld be rejected in case that these cuntries have nt implemented an electricity disclsure system. The recgnitin f GO frm ther cuntries shuld be rejected in case that the cunty which has issued the GO r the cuntry which is exprting the GO have nt implemented adequate measures which effectively avid duble cunting f the attributes represented by the GO. Such adequate measures shuld ensure the exclusivity f the GO fr representing the attributes f the underlying electricity generatin, implement clear rules fr disclsure, establish a prper Residual Mix r equivalent measures, and ensure their actual use. Furthermre, the adequate measures shuld ensure that attributes f exprted GO are subtracted frm the Residual Mix f the exprting cuntry and cannt be used fr disclsure at any time in the issuing r the exprting cuntry by explicit mechanisms, unless the GO is re-imprted and cancelled there. Regarding acceptance f GO the fllwing BPR shuld be implemented: BPR [20a]: Lithuania shuld chse ne f the tw fllwing ptins and apply it cnsistently fr all freign GO : Rejectin f GOs nly relates t the cancellatin f GOs and subsequent use fr disclsure purpses in the respective cuntry and shuld nt restrict the transfers f GOs between the registry f the cnsidered cuntry and the registries f their cuntries. This means that the decisin abut the recgnitin f a GO shuld nt hinder its imprt int the cnsidered cuntry. Rejectin f GOs implies blcking their imprt t the natinal registry. 5/7

6 BPR [20b]: The chice f ne r the ther ptin shuld be transparent fr all market parties and clearly cmmunicated. BPR [21] Within the rules set by the respective Directives Eurpean cuntries shuld cnsider their criteria fr the acceptance f imprted GOs fr purpses f disclsure. These criteria shuld address imprts at least frm all EU member states, ther members f the Eurpean Ecnmic Area (EEA) and Switzerland. The parties t the Energy Cmmunity Treaty shuld be cnsidered as well, as sn as GO imprts frm these cuntries becme relevant. The criteria shuld specify the electrnic interfaces, specifying data frmat and cntents f GOs t be imprted, which the respective cuntry accepts fr imprts f GOs (such as the EECS Hub and any ther interfaces accepted). Cnditins fr the recgnitin f GOs frm ther cuntries shuld be that they were issued based n Art. 15 f Directive 2009/28/EC r cmpatible natinal legislatin, and that they meet the explicit requirements set in Art. 15, fr example, regarding the infrmatin cntent f the GOs. The recgnitin f GOs frm ther cuntries shuld be rejected if these cuntries have nt implemented an electricity disclsure system. The recgnitin f GOs frm ther cuntries shuld be rejected if the cuntry which has issued the GOs r the cuntry which is exprting the GOs have nt implemented apprpriate measures which effectively avid duble cunting f the attributes represented by the GOs. Such apprpriate measures shuld ensure the exclusivity f the GOs fr representing the attributes f the underlying electricity generatin, implement clear rules fr disclsure, establish a prper Residual Mix r equivalent measures, and ensure their actual use. Furthermre, the apprpriate measures shuld ensure that attributes f exprted GOs are subtracted frm the Residual Mix f the exprting cuntry and cannt be used fr disclsure at any time in the issuing r the exprting cuntry explicit mechanisms, unless the GOs are re-imprted and cancelled there 2.5 Further prpsals regarding Disclsure BPR [39b]: Suppliers ffering tw r mre prducts which are differentiated regarding the rigin f the energy shuld be required t give prduct-related disclsure infrmatin t all their custmers, including thse which are buying the default prduct f the supplier. BPR [40]: There shuld be clear rules fr the claims which suppliers f e.g. green pwer can make twards their cnsumers. There shuld be rules hw the additinalyty f such prducts can be measured (the effect which the prduct has n actually reducing the envirnmental impact f pwer generatin), and suppliers shuld be required t prvide t cnsumers the rating f each prduct based n these rules. BPR [41]: Claims made by suppliers and cnsumers f green r ther lw-carbn energy relating t carbn emissins r carbn reductins shuld als be regulated clearly. These regulatins shuld avid duble cunting f lw-carbn energy in such claims. A decisin needs t be taken whether such claims shuld adequately reflect whether the energy purchased was additinal r nt. 6/7

7 2.6 Matrix f disclsure related prblems and cuntry-specific prpsals Prblem Pssible duble cunting in different explicit tracking instruments Duble cunting f attributes in implicit tracking mechanisms Duble cunting within individual supplier's prtfli Lss f disclsure infrmatin Intransparency fr cnsumers Leakage f attributes and/r arbitrage Unintended market barriers Cuntry-specific prpsal BPRs: [7], [7a], [7b], [8], [9a], [9b], [10.2], [10.3], [10.4], [11a], [11b], [11c], [13.5], [13.7], [16], [17], [23], [24], [29], [30], [32] BPRs: [5a], [5b], [6], [9a], [9b], [11a], [11b], [11c], [13.5], [13.7], [21], [23], [24], [25], [26a], [26b], [27], [28], [29], [30], [32] BPRs: [39b] BPRs: [3b], [11a], [11b], [11c], [13.5], [13.7], [15b], [19] BPRs: [11a], [11b], [11c], [13.5], [13.7], [23], [39b], [40], [41] BPRs: [1a], [1b], [2], [5a], [5b], [6], [9a], [9b], [13.5], [13.7], [19], [28], [34], [35] BPRs: [4], [7], [7a], [7b], [8], [9a], [9b], [20a], [20b] Disclaimer: The sle respnsibility fr the cntent f this dcument lies with the authrs. It des nt necessarily reflect the pinin f the Eurpean Unin. Neither the EACI nr the Eurpean Cmmissin is respnsible fr any use that may be made f the infrmatin cntained therein. Nte: This Cuntry Prfile expresses the interpretatin f the RE-DISS prject team f the qualitative data cllected frm the respective Cmpetent Bdies f the dmain and/r ther surces. 7/7

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