The investment environment for renewable energy development in lithuania: The electricity sector

Saule Milčiuviene, Julius Paškevicius

Research output: Contribution to journalArticle


The article analyzes the investment environment in renewable electricity generation capacities, evaluating the credibility of long term renewable energy targets, the stability of promotion schemes and the impartiality of national administrative procedure. The article explores two main questions: (i) are the EU and Lithuanian energy policy targets and promotion schemes credible enough to convince private investors to put their money in renewable energy development; (ii) does national administrative procedure put a disproportional burden on renewable energy investors or on certain group of investors? The assessment of the investment environment includes a large number of criteria, but we analyze three of them: the stability of long term strategy; the attractiveness of promotion measures; and the simplicity and transparency of administrative procedure. Two further criteria are investigated: the stability of targets in renewable energy and the stability of promotional measures. The greatest uncertainty for investors occurs because of constantly changing support schemes of renewable energy sources-schemes that are not harmonized among the member States. At the national level the main driver in the development of small generators is the feed-in tariff. However, the high feed-in tariff does not always guarantee the smooth development of small scale generators of renewable energy.

Original languageEnglish
Pages (from-to)29-48
Number of pages20
JournalBaltic Journal of Law and Politics
Issue number1
Publication statusPublished - Jun 1 2014
Externally publishedYes



  • Administrative procedure
  • Long term targets
  • National precedures
  • Promotion schemes
  • Renewable energy

ASJC Scopus subject areas

  • Law
  • Sociology and Political Science

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