Resource-efficiency in Europe and Lithuania: status quo and the road towards September 2013

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Resource-efficiency in Europe and Lithuania: status quo and the road towards 2020 3 September 2013 Žydrūnė JUODKIENĖ Energy vice-minister, Lithuania

Outline I. Importance of resource-efficiency to energy and EU energy policy II. Lithuanian Presidency priorities in energy and the main strategic objectives of the energy sector of Lithuania III. Achievements in the context of 20/20/20 targets: a. Energy efficiency b. Renewable energy sources(res) Conclusions 2

I. Importance of resource-efficiency to energy and EU energy policy Energy is a crucial aspect of resource efficiency; at the same time, resource efficiency helps in achieving EU s energy policy as it: strengthens energy security; enhances competition; promotes smart, sustainable and inclusive growth. 3

II. Lithuanian Presidency priorities in energy Lithuanian Presidency priorities are: Completion of the EU internal energy market; Strengthening of the external dimension of the EU energy policy. Resource-efficient Europe is in line with the energy priorities of the Lithuanian Presidency, as well as with the main strategic objectives of the energy sector of Lithuania. 4

II. The main strategic objectives of the energy sector of Lithuania Integrate into the EU internal energy market Increase the share of renewable energy sources (RES) in the primary energy balance Increase energy efficiency Diversify fuels for energy production, especially in the district heating sector 5

III. Achievements in the context of 20/20/20 targets: The Energy Efficiency directive 2012/27/EC

Energy savings set by the energy efficiency directive (1) I. The biggest potential for energy savings renovation of old public and multi-apartment buildings: -over11.000,or 30 %,of all multi-apartment buildings need to be modernized; - 40-50 percent lower heating demand; -demand side management measures: reduction of heat consumption by up to 15-20 %.

Energy savings set by the energy efficiency directive (2) II. Renovation of district heating networks : -Present situation 16,1% losses, target 12%; 40 Heat loss in network (%) 35 30 32,3 % 25 20 22,5 19,6 16,7 16,1 15 10 5 0 1996 2002 2005 2008 2012 8

Energy efficiency obligation scheme Currently, energy efficiency obligation schemes are being set in Lithuania. Heat, electricity and natural gas distributors will be designated as obligated parties to achieve a cumulative end-use energy savings. Challenges to implementation: - sources of financing; - energy efficiency obligation scheme and alternative policy measure; - measures and sectors to be prioritized. 9

III. Achievements in the context of 20/20/20 targets: Renewable energy sources 60,0% 50,0% 49,0% 40,0% 30,0% 40,0% 38,0% 34,0% 31,0% 30,0% 25,0%25,0% 24,0%23,0% 23,0% 20,0% 10,0% 20,0% 18,0% 18,0% 17,0%16,0%16,0% 15,0%15,0% 14,0%14,0%13,0%13,0%13,0%13,0%11,0% 10,0% 0,0%

Current situation of RES and 2020 targets in Lithuania in % 10

Percentage share of citizens served by district heating 100% 90% 92% 80% 70% 60% 50% 40% 38% 61,07% 54% 50% 64% 67% 41% 36% 48% 30% 20% 10% 21% 17% 10% 7,4% 12% 5% 15% 5% 1,00% 19% 15% EU average: 12.4% 4% 1% 3% 0% Source: EuroHeat&Power 11

The fuel structure for heat production in district heating sector Other fuel Fuel oil 1,7% 2,8% Natural gas 68,2% RES 27,2% -Woodand woodwaste- 213674 t.o.eor(95,0 proc.) -Straw - 2175 t.o.eor(1,0 proc.) -Biogas - 1001 t.o.e or(0,4 proc.) - Geothermal- 8078 t.o.e or(3,6 proc.) Fuel structure, 2012 Fuel structure (the goal of 2020)

Consumption and resources of biomass in Lithuania Biomass Biofuel annual anual resources in Lithuania ~2000 2020 In DH For heat and electricity production ~720 ~1500 0 500 1000 1500 2000 2500 ktoe/year 13

Biomass resources are not infinite efficiency is key!!

The development of biomass and municipal waste utilization in Lithuania will let: -Increase the country's energy security (reducing the country's dependence on imported fossil fuels) - Create an additional 10 thousand new jobs; -Reduce CO 2 emissions from 2 millions to 0.6 millions tons per year; -Improve the balance of import/export; - Develop equally of the country regions; - Stabilize the heat prices to consumers 15 16

Conclusions Resource-efficient Europe is in line with the energy priorities of the Lithuanian Presidency, as well as with the main strategic objectives of the energy sector of Lithuania Energy efficiency should be improved at all stages of the energy chain: generation, transformation, distribution and final consumption We need to incorporate energy efficiency in our daily life to consume less and do more with less energy. The safest and most environmentally friendly energy saved energy Natural resources are not infinite efficiency is key!

Thank you for attention! Resource-efficiency in Europe and Lithuania:status quo and the road towards 2020 3 September 2013 Žydrūnė JUODKIENĖ Energy vice-minister, Lithuania