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.

Extended project timeline

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.

Energy communities

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. Allocations will be based on each eligible individual’s declared place of residence rather than on a household basis.

The revised mechanism will apply to funds collected for 2026, funds returned in 2027 and unused balances from previous periods. The levy is financed by renewable electricity producers according to their electricity output.

Faster grid connection

Furthermore, the Lithuanian government has allowed large-scale investors to access equipment reserves maintained by electricity network operators, helping facilitate faster grid connections.

The amendments also require electricity and gas transmission and distribution operators to maintain reserves of critical equipment and materials needed to restore supply following accidents, technical failures or deliberate physical interference.

Both measures took effect on Nov. 1.

In addition, improvements to the regulatory framework for direct electricity lines will provide greater flexibility for large electricity consumers and producers, supporting new industrial and energy investments.

Cybersecurity

The legislative package also strengthens Lithuania’s implementation of EU energy legislation by introducing penalties for violations of methane emission reduction requirements and restrictions on Russian gas imports.

It also clarifies institutional responsibilities for implementing EU cybersecurity requirements concerning cross-border electricity flows.

The National Energy Regulatory Council, the Lithuanian Energy Agency and the National Cyber Security Centre will have clearly defined roles, strengthening coordination, regulatory oversight and the protection of critical energy infrastructure.

Lithuania first announced plans to tighten its cybersecurity laws in November 2024 by passing legislation that blocked Chinese manufacturers from remotely accessing the country’s solar, storage and wind facilities. In May, the country allowed its grid operators to disconnect solar power plants that are not compliant with cybersecurity measures in force.