REPUBLIC OF LITHUANIA LAW ON ENERGY FROM RENEWABLE SOURCES 2011 May 12 No XI-1375 (As last amended on 17 January 2013 – No XII-169) Vilnius CHAPTER ONE GENERAL PROVISIONS Article 1. Purpose, Aim and Tasks of the Law 1. This Law shall 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 renewable sources and their relations with controlling authorities. 2. The aim of this Law shall be to ensure sustainable development of the use of renewable energy sources, promote further development and introduction of innovative technologies and consumption of generated energy, taking particular account of the international commitments of the Republic of Lithuania, the objectives of environmental protection, sparing use of fossil energy sources, reduction of dependence on fossil energy sources and energy import and other objectives of the state energy policy, subject to evaluation of the requirements of security and reliability of energy supply, also taking account of the principles of ensuring of the protection of consumer rights to and legitimate interests in the availability, suitability and adequacy of renewable energy resources. 3. This Law shall establish a common system of promotion of the consumption of energy from renewable sources in the Republic of Lithuania. 4. The key task of this Law shall be to ensure that in 2020 the share of energy from renewable sources accounts for at least 23 per cent as compared with the country’s gross final energy consumption level and that this share is further increased by employing, to this end, the latest and most efficient technologies of use of renewable energy resources and promoting the efficient consumption of energy. 5. The tasks of this Law in specific energy sectors in 2020 shall be: 1) to increase the share of energy from renewable sources in all modes of transport at least up to 10 per cent as compared with the final energy consumption in the transport sector; 2) to increase the share of electricity generated from renewable sources not less than up to 20 per cent as compared with the country’s gross final consumption of energy; 3) to increase the share of district heat produced from renewal energy sources in the heat balance at least up to 60 per cent, and to increase the share of renewable energy sources in households in the balance of energy sources used for heating at least up to 80 per cent. 6. The provisions of this Law shall implement the legal acts of the European Union listed in the Annex to this Law. Article 2. Definitions 1. Aerothermal energy means energy stored in the form of heat in the ambient air. 2. Energy from renewable sources means energy from renewable non-fossil sources: wind, solar, aerothermal, geothermal, hydrothermal and ocean energy, hydropower, biomass, biogases, including landfill gas and sewage treatment plant gas, also other renewable non-fossil sources whose use is technologically feasible currently or will be feasible in the future. 3. Renewable energy installation (hereinafter: ‘installation’) means an installation producing electricity and/or heat and/or solid biofuel and/or liquid biofuel from renewable energy sources. 4. Guarantee of origin of renewable energy resources (hereinafter: ‘guarantee of origin’) means an electronic document which has the sole function of providing proof to a final customer that a given share or quantity of energy was produced from renewable sources. 5. Pilot project of the use of renewable energy sources (hereinafter: ‘pilot project’) means a project of the use of renewable energy sources prepared in accordance with the procedure and under the terms and conditions specified by the Government of the Republic of Lithuania and including studies of applicability of new technologies or pilot installations, also enhancement or major improvement of the operational efficiency of the existing technologies. 6. Support measure for the use of renewable sources to produce energy (hereinafter: ‘support measure’) means a measure or method specified in this Law and other legal acts promoting the use of renewable sources for the production of energy. 7. Gross final consumption of energy means consumption of energy products supplied to industry, transport, households, the services sector (including public services), agriculture, forestry and fisheries for the purpose of production of energy, including consumption of electricity and heat consumed by the energy sector for the production of electricity and heat and electricity and heat losses in the course of distribution and transmission. 8. Biofuels for transport means liquid or gaseous fuel for transport produced from biomass. 9. Biogas means gas produced from biomass. 10. Biofuels means gaseous, liquid and solid flammable products for energy purposes, produced from biomass. 11. Biomass means the biodegradable fraction of products, waste and residues (including vegetal and animal substances) from biological origin from agriculture, forestry and related industries, including fisheries and aquaculture, as well as the biodegradable fraction of industrial and municipal waste. 12. Bio lubricants and bio oils means the lubricants and oils produced from vegetable or animal fats. 13. Supply of district heating or district cooling means the delivery and sales to consumers of thermal energy in the form of steam, hot water or chilled liquids, from a central source of production. 14. Power plant means an energy facility managed by the electricity producer by the right of ownership or another right and intended for the production of electricity or electricity and heat by co-generation from renewable sources and consisting of one or more technologically interconnected installations for electricity production connected to electricity grids.   15. Installed capacity of a power plant means the aggregate of all active capacities of a power plant. 16. Preliminary design conditions for connection of a power plant to energy grids (hereinafter: ‘preliminary connection conditions’) means preliminary design conditions issued to the generator of energy from renewable sources specifying mandatory requirements for construction, reconstruction and/or development of energy grids when connecting a power plant of the generator to the grids managed by the energy grid operator or providing other services specified in legal acts. 17. Design conditions for connection of a power plant to energy grids (hereinafter: ‘connection conditions’) means technical specifications specifying mandatory requirements for construction, reconstruction and/or development of energy grids when connecting a power plant of the generator of energy from renewable sources to the grids managed by the energy grid operator or providing other services specified in legal acts. 18. Electromobile means a vehicle wherein energy for mechanical movement is supplied solely from an electric storage battery. 19. Protocol of intentions regarding connection of electricity installations to electricity grids (hereinafter: ‘protocol of intentions’) means an agreement between the electricity grid operator and the generator of electricity from renewable sources whereby, inter alia, the generator undertakes to prepare its electricity installations for connection to electricity grids within the specified time limit, and the electricity grid operator – to connect the electricity installations of this generator to the electricity grids managed by it within the specified time limit. 20. Point of connection of electricity facilities to electricity grids (hereinafter: ‘connection point’) means a point precisely indicated within electricity grids at which the installations of the user of electricity grids are connected to the electricity transmission and/or distribution grid infrastructures. The location of the connection point shall be specified in a statement of ownership boundaries and, unless stipulated otherwise, shall coincide with the boundary between the property of the electricity grid operator and the user thereof as specified in this statement. The electricity grid installations located at the connection point shall be managed by the right of ownership or on other lawful grounds by the electricity grid operator. 21. Energy grids means all interconnected installations used for transmission and distribution of energy and/or energy sources: electricity transmission and/or distribution grid infrastructures, heating or cooling transmission grids, gas transmission and/or distribution systems. 22. Energy grid operator means the operator of electricity transmission systems and/or electricity distribution grids, heating or cooling transmission grids, gas transmission and/or distribution systems. 23. Low-energy building means a building whose energy performance as specified under normative technical construction documents is very high. Energy from renewable sources, including energy produced from renewable sources on the spot or nearby, must account for the major share of required energy whose consumption is close to zero or is very low. 24. Capacity of energy installations means the capability of electricity, heating or cooling installations to achieve a certain power under normal operating conditions, irrespective of time limitations or short-term deviations. 25. Generator of energy from renewable sources (hereinafter: ‘generator’) means a person operating a renewable energy installation, holding an appropriate authorisation to pursue this activity or intending to develop production of energy from renewable energy sources. 26. Expenses of connection of installations of the generator of energy from renewable sources to energy grids (hereinafter: ‘connection expenses’) means investment required for connection of installations of the generator of energy from renewable sources to the grids managed by the operator of energy grids. 27. Fixed rate of electricity from renewable sources (hereinafter: ‘fixed rate’) means the income guaranteed to the generator, in accordance with the procedure and under the terms and conditions laid down by this Law, for a unit of electricity from renewable sources generated and supplied to electricity grids. 28. Geothermal energy means energy stored in the form of heat beneath the surface of solid earth. 29. Hybrid vehicle means a vehicle wherein energy for mechanical movement is supplied from two or more sources of accumulated energy located in the vehicle: consumed fuel and electricity storage unit (battery, condenser). 30. Hydropower means energy of standing and/or flowing water used for generation of electricity. 31. Hydrothermal energy means energy stored in the form of heat in surface water. 32. Rest energy means energy released in the course of a technological process and not used in this process. 33. Maximum capacity of generating sources allowed to be connected means the largest technical amount of capacities of a system (grid) to which the producer's power plant is to be connected, as held by the transmission system operator and/or the distribution grid operator 34. Mineral fuels means liquid or gaseous fuels for transport produced from natural fossil raw materials or mineral waste. 35. National targets means national overall or interim targets calculated in accordance with the procedure laid down by this Law and indicating the share of energy from renewable sources as compared with gross final consumption of energy over the specified period. 36. Statement of ownership boundaries means a statement signed by the generator of energy from renewable sources and the energy grid operator stipulating the boundary of ownership between the grids of the user of energy grids and the grids managed by the energy grid operator. 37. Support scheme means the body of support measures that promotes the use of energy from renewable sources by reducing the costs of using renewable energy sources, increasing the price at which energy from renewable sources can be sold, imposing the obligation to use renewable energy sources or consume energy from renewable sources, also other instruments promoting the use of renewable energy sources for production of energy and/or consumption of energy from these sources. 38. Excess electricity means electricity which is produced by power plants within the electricity grid of electricity consumers using renewable energy sources for electricity generation, is supplied to electricity grids and is left after consumption of electricity for own needs and the needs of the economy.  39. Security of discharge of obligations means a financial guarantee or a financial assurance as specified in the Law of the Republic of Lithuania on Financial Institutions. 40. Solar heat energy means solar radiation energy transformed into heat in solar collectors. 41. Solar light energy means electricity directly generated from solar light. 42. Bioliquids means liquid fuel for energy purposes other than for transport, including electricity and heating and/or cooling, produced from biomass.  43. Statistical transfer of energy means a transfer of an amount of energy from renewable sources calculated according to official national statistics to another Member State or receipt of the specified amount of energy from another Member State. 44. Heat pump means an installation transforming aerothermal, geothermal or hydrothermal energy into heat used for building heating and/or preparation of hot water. 45. Foreign state means a non-Member State of the European Union or a state not belonging to the European Economic Area. 46. Member State means a Member State of the European Union and/or a state of the European Economic Area. 47. Wind power means air movement energy used for generation of energy. 48. Services meeting public interest means the binding commitments assigned to enterprises in the cases specified by law with a view to implementing the strategic goals of state energy, economic and/or environment protection policy in the renewable energy sector and defending legitimate public interests. 49. Other concepts used in this Law shall be interpreted as they are defined in the Law of the Republic of Lithuania on Documents and Archives, the Law on Energy, the Law on Electricity, the Law on Natural Gas, the Law on Heat Sector, the Law on Construction, the Law on Water and the Law on Land. Article 3. Promotion of Development of the Use of Renewable Energy Sources 1. The use of renewable energy sources shall be promoted in accordance with the procedure and under the terms and conditions specified by this Law and other legal acts. 2. The use of renewable energy sources shall be promoted by applying the specified support scheme consisting of one or several support measures. The following shall be considered as support measures: 1) fixed rate; 2) purchase of energy from renewable sources; 3) reimbursement of the costs of connection of renewable energy installations to energy grids or systems; 4) reservation of the capacity and transfer capability or other relevant technical parameters of energy grids or systems for connection of renewable energy installations; 5) priority of transmission of energy from renewable sources; 6) release of electricity generators from responsibility for balancing of generated electricity and/or reservation of electricity generation capacities during the promotion period; 7) support for production and processing of agricultural commodities, namely, raw materials for the production of biofuels, biofuels for transport, bio lubricants and bio oils; 8) the requirements in relation to mandatory use of renewable energy sources for energy production and/or mandatory consumption of energy from renewable sources, also the requirements for the use of biofuels for transport; 9) support of investments in renewable energy technologies; 10) other privileges established by laws. 3. A decision on release of electricity generators from responsibility for balancing of generated electricity and/or reservation of electricity generation capacities after the promotion period shall be taken by the Government of the Republic of Lithuania (hereinafter: ‘Government’) using the available infrastructure and installations for this purpose in relation to all producers. 4. The procedure for and the conditions of application of support measures shall be established by the Government in compliance with the requirements of this Law to the extent that they are not regulated by this Law and/or other laws. 5. The Government may, under its resolution, grant the status of a pilot project to development of environment-friendly technologies using renewable energy sources for production of energy. CHAPTER TWO MANAGEMENT OF ACTIVITIES IN THE RENEWABLE ENERGY SECTOR Article 4. Institutions within the Sphere of Management of the Renewable Energy Sector The renewable energy sector shall, in accordance with the procedure laid down by this Law, be subject to regulation and control of compliance with this Law and implementing legislation by: 1) The Government or an institution authorised by it; 2) the Ministry of Energy; 3) the Ministry of Environment; 4) the Ministry of Transport and Communications; 5) the Ministry of Education and Science; 6) the Ministry of Economy; 7) the Ministry of Agriculture; 8) the National Control Commission for Prices and Energy; 9) municipalities. Article 5. Remit of the Government 1. The Government shall: 1) ensure implementation of the tasks set out in Article 1(4) and (5) of this Law; 2) approve, in compliance with this Law and other legal acts, the National Programme for the Development of the Use of Renewable Energy Sources; 3) approve the Inter-institutional Action Plan of the National Programme for the Development of the Use of Renewable Energy Sources; 4) establish the procedure for using the funds of the National Programme for the Development of the Use of Renewable Energy Sources; 5) approve a procedure for developing power plants, transmission and distribution grids, smart grids and electricity storage infrastructure provided for in Article 13(4) of this Law; 6) establish the procedure for controlling compliance of biofuels for transport and bioliquids with sustainability criteria, also the procedure for certifying biofuels for transport and bioliquids fulfilling sustainability criteria; 7) establish and approve total supported capacities meeting the requirements indicated in Article 13(3) of this Law and the auction regions referred to in Article 20(3); 8) establish the procedure for concluding agreements on statistical transfers between the Republic of Lithuania and other Member States, also the procedure for implementing joint projects between the Member States and third countries; 9) perform other functions set out in this Law. 2. The Government or an institution authorised by the Government shall: 1) approve the programmes for promotion of the use of renewable energy sources in compliance with objective and non-discriminatory principles; 2) approve the National Action Plan for the Development of the Use of Energy from Renewable Sources; 3) establish to municipalities minimum mandatory targets for the use of energy from renewable sources and co-ordinate draft action plans of municipalities for the development of the use of energy from renewable sources; 4) establish the procedure for providing services meeting public interest; 5) draft and adopt a procedure for issuing authorisations for the use of the territorial sea of the Republic of Lithuania, the exclusive economic zone of the Republic of Lithuania in the Baltic Sea and the coastal strip for construction and operation of power plants taking account of the general requirements for promotion of the electricity generation from renewable sources and acting in compliance with objective and non-discriminatory principles; 6) establish the procedure for issuing, transferring and cancelling guarantees of origin; 7) approve the National Special Plan for the Use of the Biodegradable Fraction of Industrial and Municipal Waste Suitable for Energy Production; 8) establish a procedure for using natural gas transmission and distribution systems when transmitting and distributing gas produced from renewable energy sources; 9) determine the allowable or mandatory share of biofuels for transport blended in fuels for transport produced from mineral fuels for transport; 10) establish the procedure for using confiscated alcohol products for production of biofuels for transport; 11) establish mandatory environmental criteria for the vehicles purchased by state institutions, agencies and enterprises; 12) prepare the measures promoting the use of energy from all types of renewable sources in buildings and energy efficiency relating to gross production of energy and/or low-energy buildings, also co-ordinate and supervise implementation of these measures; 13) establish the procedure for implementing the requirements for using renewable energy sources in buildings and implementing these requirements; 14) approve a list of positions and occupations of the workers referred to in Article 45(1) of this Law, determine the qualification requirements for these workers, approve a list of the workers constructing and operating renewable energy facilities and installations who are subject to certification and establish the procedure for certifying them; 15) establish the procedure for certifying the fitters of installations for production of energy from renewable sources; 16) establish the procedure for collecting information on the use of biofuels and submitting it to the European Commission; 17) perform other functions set out in this Law. Article 6. Remit of the Ministry of Energy The Ministry of Energy shall: 1) in accordance with the procedure and under the conditions established by legal acts and within its remit, co-ordinate the implementation of measures developing and promoting the production and use of flammable gaseous products (biogas), forest and timber waste, straws, other types of combustibles of biological origin (agricultural waste and plants used for energy production), also the use of aerothermal, geothermal, hydrothermal energy, hydropower, solar heat energy and solar light energy, wind power for energy production, conduct monitoring of implementation thereof and ensure state supervision and control; 2) draft a procedure for development of power plants, transmission and distribution grids,  smart grids and electricity storage infrastructure provided for in Article 13(4) of this Law; 3) draft the National Action Plan for the Development of the Use of Energy from Renewable Sources; 4) issue authorisations for development of capacities of electricity production from renewable energy sources; 5) issue certificates for capacities of production of electricity, heat and/or cooling, gas from renewable energy sources, also for operation of renewable energy installations in the transport sector; 6) draft and approve technical rules establishing the basic requirements for technical construction and operation to be applicable when connecting electricity from renewable energy sources to electricity grids; 7) draft and approve the technical rules establishing the basic requirements for technical construction and operation to be applicable when connecting gas from renewable energy sources to natural gas networks; 8) establish the procedure for calculating national targets; 9) approve rules for trade in biofuels, biofuels for transport, biogas, bio lubricants and bio oils; 10) determine, in co-operation with the Ministry of Environment and the Ministry of Transport and Communications, binding quality requirements for biofuels for transport; 11) organise exchange of practices in the field of use of renewable energy sources between state and municipal institutions, agencies, enterprises, organisations, private entities and make best practices public; 12) approve the Rules for Issuing Authorisations in the Electricity Sector drafted in co-operation with the Ministry of Environment and the Ministry of Agriculture; 13) perform other functions established by this Law and other laws or assigned by the Government. Article 7. Remit of the Ministry of Environment The Ministry of Environment shall: 1) establish normative standards of pollution for installations using biofuels or biofuels for transport; 2) develop and approve the methods of estimation of the amount of methane emissions to the atmosphere; 3) determine the environmental conditions of use of biofuels for transport and bioliquids; 4) establish the rules for calculating the effect of greenhouse gas emitted in the process of production and use of biofuels for transport, bioliquids and their fossil fuel comparators; 5) assess the potential of use of the biodegradable part of forest and municipal waste which may be used to produce biofuels; 6) in accordance with the procedure and under the conditions laid down by legal acts and within its remit, co-ordinate together with the Ministry of Energy the implementation of measures promoting the use of sustainable hydro power for energy production, conduct monitoring of implementation thereof and ensure state supervision and control; 7) develop and approve the methods of separation of the biodegradable fraction of industrial and municipal waste taking account of the renewable share of energy produced from industrial and municipal waste; 8) develop and publish, in co-operation with the Ministry of Energy, recommendations for designers, architects and other professionals concerning integration of renewable energy technologies, high energy-efficiency technologies and district heating and/or cooling supply systems when planning, designing, building and renovating (modernising) public, industrial or residential areas; 9) perform other functions established by this Law and other laws or assigned by the Government. Article 8. Remit of the Ministry of Transport and Communications The Ministry of Transport and Communications shall: 1) co-ordinate, in accordance with the procedure and under the conditions laid down by legal acts and within its remit, the implementation of the measures of development and promotion of the use of biofuels in transport, also the initiatives of the use of vehicles powered by renewable energy sources, electromobiles and hybrid vehicles, conduct monitoring of implementation thereof and ensure state supervision and control; 2) establish a list of products to be considered as biofuels for transport; 3) develop and approve the methods of estimation of the impact of the period of vehicles’ operation on the energy sector and the environment; 4) perform other functions established by this Law and other laws or assigned by the Government. Article 9. Remit of the Ministry of Economy The Ministry of Economy shall: 1) estimate the potential of waste and products generated in the course of production and other economic activities, with the exception of the potential of agricultural branches and industries related to processing of agricultural products and waste from which biofuels are produced; 2) perform other functions established by this Law and other laws or assigned by the Government. Article 10. Remit of the Ministry of Agriculture Remit of the Ministry of Agriculture 1) co-ordinate, in accordance with the procedure and under the conditions laid down by legal acts and within its remit, the implementation of measures of development and promotion of the production of combustible liquid and gaseous products from biomass, conduct monitoring of implementation thereof and ensure state supervision and control; 2) co-ordinate, in accordance with the procedure and under the conditions laid down by legal acts and within its remit, the implementation of measures of promotion of the growth of plants intended for production of biofuels, biofuels for transport, bio lubricants and bio oils, conduct monitoring of implementation thereof and ensure state supervision and control; 3) develop programmes for support of producers of agricultural products used for energy production and submit them for approval to the Government; 4) estimate the potential of agricultural branches and industries related to processing of agricultural products and waste from which biofuels are produced; 5) perform other functions established by this Law and other laws or assigned by the Government. Article 11. Remit of the National Control Commission for Prices and Energy The National Control Commission for Prices and Energy shall: 1) approve the methods of determination of the maximum permitted fixed rates; 2) approve maximum permitted fixed rates, determine the differentiated amounts thereof and control application thereof; 3) establish preferential rates for electricity used for the operation of heat pumps (with accounting of electricity supplied to the compressor); 4) approve the costs of optimisation, development and reconstruction of energy grids and the additional costs of the operator of energy grids related to development of the use of renewable energy sources; 5) coordinate the Procedure for Using Electricity Grids indicated in Article 14(7) of this Law; 6) examine the complaints indicated in Article 64(1) of this Law; 7) approve technological, financial and managerial capacities of renewable energy enterprises and a procedure for evaluation thereof; 8) approve the model form of a protocol of intentions; 9) establish a procedure for and conditions of purchase of heating from independent producers of heating; 10) set the feed-in price for gas from renewable energy sources to the natural gas system; 11) supervise and control authorisation of biogas producers for connection of their installations to the natural gas system, application of connection premiums and transparency of feeding-in of biogas; 12) prepare and approve the regulations of total supported capacities distribution auctions; 13) declare and organise total supported capacities distribution auctions; 14) perform other functions set out in this Law. Article 12. Remit of Municipalities Municipalities shall: 1) prepare and, subject to co-ordination with the Government or an institution authorised by it, approve and implement action plans for the development of the use of energy from renewable sources; 2) aim at the use of renewable energy sources for production of heat energy when organising provision of heat energy within the territory of a municipality; 3) develop and approve municipal programmes for funding the development of the use of renewable energy sources and a procedure for using the funds thereof; 4) aim at the use, in public transport, of the vehicles powered by energy from renewable sources, electromobiles and hybrid vehicles; 5) create the infrastructure required for development of the use of the vehicles powered by energy from renewable sources and electricity; 6) develop and implement information and awareness raising measures, provide consultations and prepare training programmes concerning the practical possibilities and benefit of the development and use of renewable energy sources; 7) perform other functions set out in this Law. CHAPTER THREE PROMOTION, PLANNING AND DEVELOPMENT OF PRODUCTION OF ELECTRICITY FROM RENEWABLE ENERGY SOURCES. CONNECTION OF POWER PLANTS TO ELECTRICITY GRIDS Article 13. Development of the Use of Renewable Energy Sources for Electricity Production 1. 1. Development of the use of renewable energy sources for electricity production shall be among the strategic goals of state energy policy. 2. The use of renewable energy sources for electricity production shall be promoted in accordance with the procedure and under the terms and conditions specified by this Law and other legal acts. 3. The tasks of this Law in the electricity sector until 2020 shall be: 1) to increase the total installed capacity of the wind power plants connected to electricity grids up to 500 MW. Upon reaching the installed capacity of 500 MW for the wind power plants, the Government shall draw up and approve a procedure for further development of wind power plants, transmission and distribution grid infrastructures, smart grids and electricity storage infrastructure taking account of commitments of the Republic of Lithuania regarding environmental pollution reduction, ensuring of secure and reliable energy supply and protection of consumer rights and legitimate interests; 2) to increase the total installed capacity of solar light energy plants connected to electricity grids up to 10 MW, excluding small power plants whose installed capacity does not exceed 30 kW and which have been issued authorisations for development of capacities of electricity production under applications filed until 31 December 2012. Upon reaching the installed capacity of 10 MW for the solar light energy plants, the Government shall draw up and approve a procedure for further development of solar light energy plants taking account of commitments of the Republic of Lithuania regarding environmental pollution reduction, ensuring of secure and reliable energy supply and protection of consumer rights and legitimate interests; 3) to increase the total installed capacity of the hydro power plants connected to electricity grids up to 14 MW; 4) to increase the total installed capacity of the power plans running on biofuels and connected to electricity grids up to 355 MW. 4. Upon exceeding the total installed capacity for power plants indicated in paragraph 3 of this Article, the Government shall, not later than by 1 January 2015, approve a procedure for further development of power plants, transmission and distribution grid infrastructures, smart grids and electricity storage infrastructure taking account of commitments of the Republic of Lithuania regarding environmental pollution reduction, ensuring of secure and reliable energy supply and protection of consumer rights and legitimate interests. 5. The total installed capacity of power plants shall be the aggregate amount of total installed capacities assigned to the power plants which are, in accordance with the procedure and under the terms specified in Article 20 of this Law, subject to measures promoting the use of renewable energy sources for electricity production, where such installed capacities are referred to in the valid authorisations for development of electricity production from renewable energy sources issued prior to the entry into force of this Law and subsequently in accordance with the procedure laid down by legal acts and in authorisations for electricity production and connection conditions issued to power plants not subject to, in accordance with the procedure laid down by Article 16(4) of this Law, an authorisation for development of electricity production from renewable energy sources.  When the total installed capacity assigned to power plants reaches the amounts of installed capacity referred to in paragraph 3 of this Article, allocation of total supported capacities in the manner provided for by this Law and secondary legislation and the receipt of applications for connection of the power plants referred to in Article 16(4) of this Law to electricity grids shall be suspended until the installed capacities referred to in paragraph 3 of this Article are increased or total supported capacities become available, where no new power plants are erected during a period indicated in authorisations for development of electricity production from renewable energy sources.  The Ministry of Energy shall publish and regularly update information on assigned total installed capacities and available total supported capacities. Article 14. CONNECTION OF POWER PLANTS TO ELECTRICITY GRIDS 1. The electricity grid operator must, not later than within 18 months or within a time period during which the producer undertakes to erect a power plant, where this period exceeds 18 months, connect by the right of priority the producer’s power plant to the electricity grids managed by the electricity grid operator at the connection point conforming to the required voltage level and is located within the shortest distance from the producer’s power plant, unless other electricity grids are technologically and economically more suitable for the connection point of the producer’s power plant. The mentioned right of priority in connecting the producer’s power plant to electricity grids shall be ensured against connection of electricity installations of other electricity producers using non-renewable energy sources to the electricity grids. The period of connection to electricity grids shall be counted from the signature of a services contract on connection of a power plant to electricity grids between the producer and the electricity grid operator. The moment of connection of a power plant to electricity grids shall be connection of the power plant for the carrying out of technological tests within the electricity grids (for starting-up and adjustment works). The electricity grid operator shall, acting in compliance with regulatory requirements, draw up and publish the standard terms and conditions of the services contract on connection of the power plant to electricity grids, which shall be non-discriminatory in respect of all producers and take account of specific requirements for separate groups of producers. 2. The electricity grid operator must connect the producer’s power plant to electricity grids also in the case when such connection is possible only upon upgrading the electricity grids, optimising them, expanding the electricity grids, increasing the capacity of the electricity grids or reconstructing them otherwise. In this case, the producer’s power plant must be connected to the electricity grids within the reasonable time limit agreed upon by the parties upon assessing the need for upgrading or development of the electricity grids, to the extent that this is reasonably necessary for connection of the power plant. 3. The time limits for connection of a power plant to electricity grids as referred to in paragraphs 1 and 2 of this Article may be extended in the cases when the electricity grid operator is unable, within the specified time limits, to connect the producer’s power plant for technological tests within the electricity grids due to a delay in respect of works in the part of the producer’s electricity grids or for other reasons beyond the control of the electricity grid operator. In each specific case, the time limit for connection of a power plant to electricity grids may not be extended for a period exceeding six months. The period of connection of the power plant to electricity grids shall be extended subject to agreement between the electricity grid operator and the producer in accordance with the procedure laid down by a services contract on connection of the power plant to electricity grids. 4. The connection point for the producer’s power plant shall be selected and specified in connection conditions by the electricity grid operator to whose electricity grids the producer’s power plant is to be connected according to the producer’s application and upon assessing the technological and economic criteria for selection of the connection point in compliance with the Procedure for Using Electricity Grids referred to in paragraph 7 of this Article. 5. The procedure shall have the right to select another connection point for a power plant which would be technologically and economically suitable taking into account the electricity grid’s capacity and the power plant’s installed capacity as indicated by the electricity grid operator. Conformity of the connection point selected by the producer with the specified technological and economic criteria in each case shall be assessed by the electricity grid operator. If connection of the power plant at the connection point proposed by the producer results in increase of connection costs, the increased connection costs shall be covered in accordance with the procedure laid down by Article 21(6) of this Law. 6. The electricity grid operator shall have the right to assign, at its own discretion, another connection point for a power plant disregarding the connection point selected by the producer, as indicated in paragraph 5 of this Article. The additional costs incurred as a result of such assignment shall be covered in accordance with the procedure laid down in Article 21(7) of this Law. 7. The electricity grid operator shall draft, under the terms and conditions specified by the National Control Commission for Prices and Energy, and, upon co-ordination with the National Control Commission for Prices and Energy, publish the Procedure for Using Electricity Grids. The procedure for using electricity grids shall be based on objective, transparent and non-discriminatory principles and due account should be taken of the benefit and costs relating to connection of producers’ power plants to the electricity grids. 8. The electricity grid operator must, not later than within 30 calendar days from submission of the producer’s application to issue preliminary design conditions, provide the producer with the entire information on the actions which the producer must undertake the purpose of connection of its power plant to electricity grids and on tentative time limits for completion of works of electricity grid expansion and, where necessary, must carry out the actions referred to in Article 18 of this Law. At the request of the producer, the electricity grid operator must present a comprehensive estimate of the costs associated with the connection of the power plant to electricity grids, a reasonable and precise timetable for receiving and processing the requests for connection of the power plant to the electricity grids, and a reasonable indicative timetable for the proposed connection of the power plant to the electricity grids. In all cases, the electricity grid operator and the producer shall exchange the entire technical and other information required for connection of the producer’s power plant to electricity grids. Preliminary design conditions must conform to the Procedure for Using Electricity Grids indicated in paragraph 7 of this Article. Preliminary design conditions may not include requirements other than those required to ensure the reliability, safety and quality of operation of the electricity facility and the electricity system. Preliminary design conditions shall be published on the Internet website of the electricity grid operator. 9. The producer shall have the right to submit a complaint in accordance with the procedure laid down in Article 64 of this Law to the National Control Commission for Prices and Energy concerning the preliminary design conditions referred to in paragraph 8 of this Article and issued by the electricity grid operator. Where the National Control Commission for Prices and Energy establishes, having regard to the conclusions of the State Energy Inspectorate under the Ministry of Energy, that preliminary design conditions do not conform to the Procedure for Using Electricity Grids, the electricity grid operator must, within a period not exceeding 30 calendar days, submit new preliminary design conditions. 10. The producer planning to increase the capacity of electricity production from renewable energy sources shall, upon receipt of preliminary design conditions, draw up and submit an application to the electricity grid operator for signature of a protocol of intentions. 11. The electricity grid operator must, within 30 calendar days from submission of an application referred in paragraph 10 of this Article and filed by the producer planning to increase the capacity of electricity production from renewable energy sources, sign a protocol of intentions with the producer. The protocol of intentions must: 1) indicate the capacity of the power plant planned to be built by the producer and the types of the renewable energy sources used; 2) include the time limit within which the producer undertakes to build the power plant, complete related works in its part of electricity grids and submit required documents for the issuance of a statement (certificate) on verification of the technical condition of electricity installations by the State Energy Inspectorate under the Ministry of Energy (for starting-up and adjustment works); 3) include the producer’s commitment to draw up, within the time limit proposed by it from signature of the protocol of intentions, and submit to the electricity grid operator for co-ordination a technical design of equipment and connection of the power plant to existing electricity grids (hereinafter: ‘technical design’), where such is mandatory; 4) include the electricity grid operator’s commitment to draw up a draft services contract on connection of the power plant to electricity grids within a period not exceeding four months from submission of a technical design agreed upon with the electricity grid operator or within a period not exceeding two months from signature of a protocol of intentions, where such a technical design is not mandatory for the power plant to be built, to draw up a draft services contract of connection of the power plant to the electricity grids; 5) include the producer’s commitment to sign the contract within one month from submission by the electricity grid operator a draft services contract on connection of the power plant to electricity grids, an appropriate technical project agreed upon, or design conditions issued by the electricity grid operator, where the technical project is not mandatory for the power plant to be built; 6) include the producer’s commitment to cover, within one month from completion of the services contract on the power plant’s connection to electricity grids, the costs of the power plant’s connection in the amount specified in Article 21(3) of this Law; 7) include the electricity grid operator’s commitment to connect the power plant to electricity grids and ensure reliable transmission and distribution of electricity produced at the plant within a time limit which may not exceed the time limits laid down in paragraphs 1 and 2 of this Article; 8) indicate the amount of security for discharge of the producer’s obligations, the terms and conditions of and the procedure for presenting and using it; 9) contain the documents evidencing the validity of a detailed plan permitting construction of a power plant of the capacity and type specified in the producer’s application, where such a document is required under the law when planning to build the power plant. 12. The model form of a protocol of intentions shall be approved by the National Control Commission for Prices and Energy. 13. Upon signing a protocol of intentions, the producer must, not later than 15 calendar days prior to the auction indicated in Article 20(3) of this Law, submit to the electricity grid operator a security for the discharge of the producer’s obligations in the amount specified in Article 15(1) of this Law and warranting to the grid operator the discharge of the producer’s obligations concerning introduction of new capacities of electricity production from renewable energy sources or increase of the existing capacities. 14. The time limit specified in point 2 of paragraph 11 of this Article shall be extended in the following cases: 1) as a result of actions of the State, actions of third parties or due to force majeure; 2) at the request of the producer, upon presentation of the additional security for charge of its obligations referred to in Article 15(1) of this Law; 3) in the cases specified by the services contract on connection of the power plant to electricity grids and other legal acts. 15. The electricity grid operator shall sign the services contract on connection of the power plant to electricity grids after the producer signs a protocol of intentions and presents therein, in accordance with the established procedure, a security for the discharge of the producer’s obligations and an authorisation for development of capacities of electricity production from renewable energy sources. 16. Repealed as of 1 February 2013. 17. The electricity grid operator shall, on a monthly basis, provide to the Ministry of Energy and the National Control Commission for Prices and Energy information on the progress of implementation of power plant construction projects and compliance with the terms of protocols of intentions. 18. The procedure for and terms and conditions of connection of the power plants using renewable energy sources to electricity grids shall be regulated by the legal acts implementing this Law to the extent that this Law does not establish otherwise. Article 15. Commitments of the Producer 1. The producer planning to increase the capacities of electricity production from renewable energy sources shall provide the electricity grid operator with a security for discharge of its commitments warranting to the electricity grid operator the producer’s commitments concerning increase of the capacities of electricity production from renewable energy sources. The amount of the security for discharge of the producer’s commitments shall be calculated by multiplying the amount of the power plant’s capacities to be installed (in kW) by LTL 50 for 1 kW. In order to extend the period of validity of an authorisation for increase of the capacities of electricity production from renewable energy sources as stipulated in Article 16(8) of this Law, the amount of the security for discharge of the producer’s obligations shall be increased by the amount calculated by multiplying the amount of the power plant’s capacities to be installed (in kW) by LTL 50 for 1kW and the duration of the period for which the validity of this authorisation is to be extended expressed in years. 2. Where the producer does not win the auction indicated in Article 20(3) of this Law or the power plant is recognised as fit for use in accordance with the procedure laid down by legal acts, the electricity grid operator shall waive its rights under the security for discharge of the producer’s commitments and shall return it to the producer or to the person who has issued the security for discharge of the producer’s commitments or shall give a written notice of the waiver to the person who has issued the security for discharge of the producer’s commitments. After construction of the power plant is completed, and a permission to produce electricity is issued, the security for discharge of the producer’s commitments shall be returned in accordance with the procedure laid down by legal acts. 3. Where the producer fails to discharge or inappropriately discharges the commitments specified in the protocol of intentions and/or the services contract on a power plant’s connection to electricity grids, the electricity grid operator shall have the right to avail of the security for discharge of the producer’s commitments submitted by the producer, with the exception of the cases when such commitments are not discharged or discharged inappropriately due to the circumstances which the producer could not control and reasonably foresee at the moment of conclusion of the protocol of intentions and/or the services contract on the power plant’s connection to electricity grids and was not able to prevent the rise of these circumstances or consequences thereof, also due to other circumstances specified by law, in the absence of the producer’s fault. 4. The funds received by the electricity grid operator under the security for discharge of the producer’s commitments may be used solely for development of electricity grids necessary to connect renewable energy installations. Article 16. Issuance of Authorisations for Development of Capacities of Electricity Production from Renewable Energy Sources 1. Existing capacities of electricity production from renewable energy sources may be developed or new capacities of electricity production from renewable energy sources at a new facility may be installed only upon obtaining of an authorisation for development of capacities of electricity production from renewable energy sources. 2. Authorisations for development of capacities of electricity production from renewable energy sources shall be issued by the Ministry of Energy in accordance with the procedure laid down by legal acts. 3. Authorisations for development of electricity production from solar light energy in the Curonian Spit and wind energy in the territorial sea of the Republic of Lithuania and the exclusive economic zone of the Republic of Lithuania in the Baltic Sea shall be issued through competition in accordance with the procedure laid down by the Government or an institution authorised by it having regard to general requirements for promotion of electricity production from renewable energy sources and in compliance with objective and non-discriminatory principles. 4. Authorisations for development of electricity production from renewable energy sources shall be issued to producers intending to develop the power plants, with the exception of reservoir-type hydropower plants whose installed capacity does not exceed 350 kW and does not exceed the installed permissible capacity at the connection point of distribution grid infrastructures, and in respect of biogas power plants built at animal husbandry, poultry farming enterprises, landfills and wastewater treatment enterprises – up to 1.2 MW of the installed capacity, in accordance with the simplified procedure according to the Rules for Issuing Authorisations for Activities in the Electricity Sector approved by the Minister of Energy and in compliance with objective and non-discriminatory principles. Version of paragraph 4 after 1 March 2013: 4. An authorisation for development of electricity production capacities shall not be required, where the producer plans to develop electricity production capacities whose installed capacity does not exceed 10 kW and to use them to produce electricity for own needs and for economic needs. The producer planning to develop electricity production capacities whose installed capacity does not exceed 10 kW and to use them to produce electricity solely for its own needs and for economic needs must give a notice thereto to the grid operator in accordance with the procedure established by the Government or an institution authorised by it. 5. An authorisation for development of capacities of electricity production from renewable energy sources shall be issued to the producer planning to develop the capacities of electricity production from renewable energy sources only upon submission of the following documents: 1) an application for the issuance of an authorisation for development of capacities of electricity production from renewable energy sources; 2) the protocol of intentions concerning connection of the power plant to electricity grids signed by the electricity grid operator as provided for in Article 14(11) of this Law, if the producer’s power plant will be connected to electricity grids, and the protocol of intentions is obligatory under this Law; 3) documents of a land plot whereon the power plant is to be constructed or the capacity of the existing power plant of the producer are to be increased confirming the right of the producer to manage and use the land plot by the right of ownership or on other grounds specified by law. Where the producer manages the land plot by the right of joint ownership or on a ground other than ownership, the producer shall submit also the consent of the co-owners or owner of the land plot to construction of the power plant on the land plot and operation of the plant for a period of at least 20 years. In the case when installations for production of electricity are planned to be erected on a building or a part of the structure thereof, the producer shall submit only the consent of co-owners or owner of the building for construction and operation of a power plant, and the requirement to manage and use a land plot by the right of ownership or on other statutory grounds shall not apply; 4) a conclusion of the selection procedure on environmental impact assessment of the proposed economic activity or a decision on the admissibility of the proposed economic activity from the point of view of environmental impact, where environmental impact assessment must be performed under the Law of the Republic of Lithuania on Environmental Impact Assessment of the Proposed Economic Activity; 5) a decision of the selection procedure on public health impact assessment (with the exception of the cases when the power plant’s capacity does not exceed 30 kW, and the solar light power plant’s capacity does not exceed 250 kW); 6) a confirmation of the fixed rate for total supported capacities won at an auction, with the exception of the cases when the fixed rate does not apply to the power plants. 6. The Ministry of Energy must, within 30 calendar days from the receipt of the required documents, issue to the producer an authorisation for development of capacities of electricity production from renewable energy sources or provide a substantiated written refusal to issue the authorisation. If not all data or documents are submitted, the time limit shall be counted from the submission of all data or documents. 7. It shall be allowed to refuse the issuance of authorisations for development of capacities of electricity production from renewable energy sources only where the producer fails to submit at least one of the documents referred to in paragraph 5 of this Article or where provided data are incorrect. 8. An authorisation for development of capacities of electricity production from renewable energy sources shall be valid until the commencement of operation of the power plant provided for in the protocol of intentions concerning connection of the power plant to electricity grids, but in no case longer than for 24 months. The authorisation may be extended for a period not exceeding six months where design works have been completed and at least 50 per cent of project development works have been carried out and where the producer provides an additional security for discharge of the producer’s commitments in accordance with Article 15(1) of this Law. The authorisation may be extended for an additional period not exceeding six months where the producer provides sufficient evidence that a delay in the carrying out of the planned works has been caused by actions of the State, actions of third parties or force majeure, also other circumstances which the producer’s was unable to control or otherwise manage. Article 17. Access to the Grid and Transmission of Electricity by Electricity Grids 1. The electricity grid operator must ensure the producer's priority access to the grid, transmit and/or distribute at transparent and non-discriminatory rates the entire amount of electricity offered by the producer and produced from renewable energy sources. The mentioned right of priority access to the grid, transmission and/or distribution of electricity shall be ensured to the producer against electricity produced by other electricity producers using non-renewable energy sources. 2. Where the electricity grid operator ensuring access to the grid is not a transmission system operator, the obligation to ensure priority ac …