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19.06.2020

Amendments establishing the electricity capacity assurance mechanism adopted

The current legal regulation does not provide for the possibility for storage and / or regulatory load equipment to contribute towards ensuring the adequacy of the Lithuanian electricity system, and the mechanisms established in the legal framework do not encourage the emergence of new electricity generation and storage equipment.

In view of this, the Lithuanian Parliament (Seimas) adopted amendments earlier this month establishing a possibility for the electricity capacity assurance mechanism.

The capacity assurance mechanism will be implemented through technology-neutral energy auctions. This means that not only electricity generation facilities will be able to participate in the auctions, but also energy storage facilities, facilities operated by independent electricity demand aggregators. The auctions will be open not only to existing electricity generation facilities, but also to future power generation sources, which should be installed by 2025.

The new facilities are planned to replace technologically obsolete, inefficient and non-compliant facilities. It would also contribute to climate change mitigation goals.

The capacity assurance mechanism will also be open to other EU Member States whose electricity system is connected to the Lithuanian electricity system, a natural or legal person, other organization or their unit operating existing capacity facilities in the Member State.

Article prepared by: Robert Juodka and Jaroslav Pavlovskij.


In 2020, Project & Energy team was noted and ranked by legal direcotory LEGAL500

Robert Juodka heads up the team at Primus Derling, which handles transactions and regulatory matters for domestic and regional clients in the energy and natural resources arena. In 2019, Juodka advised Honeywell on a product safety issue concerning an industrial gas valve. Tomas Venckus is active in infrastructure and energy projects. Senior associate Jaroslav Pavlovskij is also recommended.

Key clients: Honeywell, SBA Group / Mebelain, Enefit, Yokogawa,Eesti Energia

Work highlights:

  • Successfully represented Yokogawa in court litigation, which was centred on a public procurement dispute with Amber Grid, the national Lithuanian gas transmission system operator.
  • Acting for Rafako on the construction of a CHP power plant in Vilnius.
  • Assisted Enefit with the preparation of a template Energy Savings Agreement (B2B) and advised on related regulatory matters