Sign In
Published: 8/30/2019. Updated: 9/4/2019

Technologically neutral auction of electricity of renewable sources


IMPORTANT. Auctions to promote the development of renewable energy are being launched (click here for more information)

Legal Acts
Law on amendments of Art. 1, 2, 3, 5, 11, 13, 14, 17, 20, 201, 21, addition of Art. 631 and void of Art 15 of Law on Energetics of Renewable Saurces No. XI-375 (available in Lithuanian here)
Methodology on electricity market price and reference price setting, adopted by decision No. O3E-152, 24 May 2019 (available in Lithuanian here)
Methodology on maximum price of electricity, produced of renewable saurses, adopted by decision No. O3E-139, 20 May 2019 (available in Lithuanian here)
Examplary form of intent protocol of connection of electricity equipment to the electricity network, adopted by decision Nr. O3-163, 1 July, 2011 (new version adopted 26 April, 2019) (available in Lithuanian here)
Description of the rules of producers of electricity use of AB „Litgrid“ transmission network, adopted by decision No. O3E-197, 12 June, 2019 (available in Lithuanian here)
Regulation of auction of incentive quota of electricity production of renewable sources, adopted by decision Nr. O3-229, 29 July, 2011 (new version adopted 2 August, 2019) (available in Lithuanian here)
Maximum price of electricity of renewable sources​Reference price
48,93 Eur/MWh45,07 Eur/MWh
​September 2, 2019 starts the first technologically neutral auction of electricity of renewable sources. The provided quota to be distributed is 0,3 TWh.
​The maximum price and reference price are used to calculate the maximum price premium to the market price.
The maximum price is calculated as costs, necessary to produce 1 MWh electricity of renewable sources, using the most efficient technologies (in 2019 the solar and wind technologies were evaluated). Reference price is calculated as weighted average of 3 years market price, i.e. price, that person reasonably expects to get selling electricity  of renewable sources at the pool.
The maximum premium, for which is announced the auction, is calculated as difference between maximum price and reference price. The participant of Auction provide the offers for wished price premium (it can be equal or less then maximum price premium). The winner is defined by the lowest offer, price premium is given for 12 years.
​Concrete value depends on the market (pool) prices, but in any case it cannot exceed maximum price. I.e. of the market prices exceeds set maximum price, the price premium is not paid, as persons costs are covered by market price.
Example of incentive scheme: maximum price, reference price and price premium

EN_schema.jpg

Scheme of winner determination

The common scheme shows common principles of winner determination. The process can differ in different situations. Detailed processes can be find in the annexes to common scheme (schemes are available only in Lithuanian). The examples in the annexes must be read not as the continuation of common scheme, but as entire process from the beginning (offers) to the end (determination of winner or (and) undistributed quota).

More information is available in Lithuanian.