Royal Danish Embassy, Vilnius Vilma Jarasiuniene, Senior Commercial Adviser Phone:

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1 Royal Danish Embassy, Vilnius Vilma Jarasiuniene, Senior Commercial Adviser Phone: viljar@um.dk

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9 Labour cost are over 6 times lower, than the EU average Minimum gross monthly salary is 290 EUR (from year 2013) Average gross salary is 615 EUR per month and minimum hourly wage is 1.76 EUR Average gross monthly salary in PRIVATE sector including individual enterprises is 590 EUR In 2013 monthly salary has increase by 1.7%.

10 Average Gross Salaries EUR, 2013 Q

11 The current average minimum monthly wage 1000 LTL EUR 2160 DKK The state social insurance basic pension 360 LTL EUR DKK The insured income of the current year (2014) Minimum unemployment social insurance benefit 1488 LTL EUR DKK 350 LTL EUR 756 DKK Maximum unemployment social insurance benefit 650 LTL EUR 1404 DKK

12 Employment relations in Lithuania are basically regulated by the Labour Code, which is effective from the 1 st of January, Working age, amount of salaries are regulated by the Social security Law. Basic amount, used for the calculation of payments during sick days, maternity/paternity leave and pensions are defined and announced by the Government of Lithuania yearly. All social benefits are covered by the State Sickness payments, maternity/paternity leave Pensions (can be partly private)

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15 National Energy Independence Development of Transport Infrastructure (engineering and quality of services) Development of Knowledge Society Modern information and communication technologies based on newest R&D Source: Lithuania: National Reform Programme.

16 Lithuania imports the main resources of fuel and energy: oil, natural gas and coals. Oil is also produced in Lithuania; yet its amount is insignificant and comprises only around 1% of the whole amount of imported oil. Energy security and energy independence are the strategic priorities of the government and the energy sector is particularly important to the Lithuanian economy. Strategic energy reforms in the electricity and gas sectors are being successfully implemented, together with a gradual shift towards more efficient energy production and greater use of renewable energy. Current share of renewable energy sources (RES) in the final energy consumption is 20%. Majority of energy from renewable energy sources is currently being produced from biomass. European Parliament and Council Directive 2009/28/EC on the promotion of the use of energy from renewable sources sets a mandatory national overall target for the share of energy from renewable sources in the gross final consumption of energy in The target for Lithuania is 23% of RES in the gross final consumption of energy in 2020 (including 10% of renewable energy in transport).

17 . The major objective of the renewed National Energy Independence Strategy is to ensure energy independence for Lithuania by This will be ensured by breaking Lithuania s energy isolation (alternative ways to import energy resources will be established) and by securing sufficient and competitive internal capacities for electricity production. Strategic Initiatives till 2020 to increase the share of renewable energy sources in the final energy consumption In electricity sector. The state will aim for not less than 20% of electricity to be generaqted from RES, mainly comminig from biomass CHP plants and wind power plants. In order to reach this goal by 2020, there will be installed wind power energy plants generating of 500 KW capacity, biomass CHP plants of at least 355 MW, hydro electricf plants of 141 KW and solar energy of 10 MW capacity. In heating sector. In 2020 renewable energy sources will cover no less than 60 % of district heating sector, mainly by unlocking the biomass potential. In this regard, it is very important to ensure the availability of sufficient biomass resources at competitive prices. Infrastructure for wood biomass collection will be developed, proper management of flows of wood products will be ensured and the use of straw substantially increased. In transport sector. Renewable energy sources will account for no less than 10 % of fuel energy consumption. Strategic initiatives till 2050 to aim for higher sustainability for the energy sector preliminary through increasing the share of RES in final consumption.

18 Main tasks (part of the National Energy Strategy) re energy and heat sectors: Increase efficiency of energy consumption renovation of buildings (households and public) with reduction of heat consumption by 30-40% by 2020 (in comparison to the level of 2009) EUR 2.2 billion should be invested Significant increase part of renewable energy sources in energy production by 2020 Target 60% of heat production from renewable 23% of renewables in the final energy consumption (current level 15%) Save energy and heat, via Upgrade of the old energy and heat transmission system and grid (renovation outdated transmission grid, replacing old boilers, building CHP plants) by 2020 Saving around 3 TWh EUR 0.4 billion to be invested to replace 75% of old grid.

19 In Lithuania biomass (firewood and wood waste) has traditionally been used for heat production in private households; 574 ktoe were consumed in The amount of biomass used grew to 180 ktoe during the same year compared to the 116 ktoe consumed in 2005 in district heating, as the technology had reached 75% of all Lithuanian residential buildings. A geothermal heat plant supplies the district heating grid of the city of Klaipeda. Renewable heat production RES technology Investment costs (mln. Eur) Biomass 1700 (390 MW) 6083 (1425 MW) 724 CHP 441 (80 MW) 2741 (600 MW) 408 Boilers 1259 (310 MW) 2342 (525 MW) 70 Boilers (support needed) (300 MW) 116 Waste 0 (0 MW) 340 (60 MW) 145 Source: Ministry of Energy of the Republic of Lithuania

20 There is no direct renewable heating (RES-H) support. The generation of RES-H is supported by investment subsidies and is exempt from pollution taxes. Subsidies and soft loans are provided from the Lithuanian Climate Change Programme and EU structural funds. Investment support from EU structural funds related to renewable energy deployment is dedicated to heat production projects using biomass. The following activities are supported: - modernisation of boiler-houses that supply heat to district heating systems by changing the used fossil fuel type to biomass - modernisation of Combined Heat Plants (CHP) that supply heat to district heating systems by changing the used fossil fuel type to biomass - building of new boiler houses using renewable energy - building of new CHP plants using renewable energy.

21 Renovation of multi-family buildings Lithuanians spend 13.3% of their income for heating of 50 m2 (to compare in Nordic countries that takes - 1.5%). National (long term) plan: To refurbish apartment block buildings After renovation, average energy savings have to reach around 50% per single building State support program JESSICA, established with target: 1000 multifamily buildings-blocks to be renovated by 2015 After renovation each block should save 125 MWh a year EUR 290,000 are the estimated costs to renovate 1 apartment block (60 apartments, each approx. 50 sq. m.). Leading municipalities have already initiated the process of renovation using the support funds in coverage from the money saved for heating. combination with mechanism of loans

22 Lithuania for period will receive bln. Eur of European Union support in total. In general the EU funds will be used in several main directions: - over 7.3 bln. Eur for cohesion support (including infrastructure, energy and environment projects) bln. Eur for rural development bln. Eur for decommissioning of Ignalina Nuclear PP mln. Eur will be allocated to energy sector, Including million EUR to support of RES. Please see the following slide.

23 Source: Ministry of Energy of the Republic of Lithuania

24 Part of the EU funds will be used for a specific projects, including: 400 mln. Eur to renewables in central heating systems and electricity production (this is under the responsibility of the Ministry of Energy) 420 mln. Eur to improve energy efficiency in residential and public buildings (responsible 2 ministries: Ministry of Environment and Ministry of Economy) 25 mln. Eur to energy efficiency measures in industrial production systems (this is under the responsibility of the Ministry of Economy) 86 mln. Eur to development of sustainable transport.

25 .Over 600 companies operate in the food processing industry in Lithuania The most developed food processing subsectors are Milk Meat Grain processing. Other well-established sectors are brewing, fish processing, canned vegetables, fruits and confectionery.

26 Workforce of over 36,000 employees Extensive application of modern technologies Rapid growth of innovative companies Stringent quality and environmental standards, in compliance with EU regulations Approximately 50% of dairy production is exported to other EU countries Lithuanian beer was awarded at the European Beer Star Awards, World Beer Cup and World Beer Championship

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28 STRUCTURE OF SALES OF FOOD PRODUCTS AND BEVERAGES

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30 Lithuanian dairy industry processed about 1,65 mill. tons milk per year. About half of milk, processed into various milk products, is exported. The main producible product is cheese. Export of cheese composes 50 % of all export of dairy products. Approximately 20 companies in Lithuania are engaged in producing milk products. The biggest producers are (94% of Lithuanian market): AB Rokiškio sūris AB Pieno žvaigždės AB Žemaitijos pienas AB Vilkyškių pieninė UAB Marijampolės pieno konservai

31 Since 2004 the number of Lithuanian meat sector factories has fallen by half. Before the accession into EU and after the accession, meat sector factories have made investments from Structural Funds, which amounted to about 44 million euro. Therefore, although the actual number of factories has fallen, but due to the investments, production capacity has grown considerably and currently there are about 40 % untapped capacities.

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