Municipalities unite to reduce energy poverty
Remote solar power plants (associative photo)
Municipalities in Lithuania are increasingly using the opportunity to establish energy communities initiated by the Ministry of Energy, which help reduce energy poverty, strengthen energy independence, and reduce public sector electricity costs.
To this end, 192.64 million euros of state budget and other public funds have been allocated, with the financing measure administered by ILTE. The funds are used to finance the construction of solar and/or wind power plants or the acquisition of already built power plants. Once projects are implemented, at least 20% of the plant's capacity must be allocated to residents of the municipality receiving social support, and the remainder is used to meet the electricity needs of municipal institutions and enterprises.
"The improvements to the conditions of this measure in September 2025 had a concrete effect – we are now seeing increased interest from municipalities. Energy communities are now becoming an instrument of social responsibility and a financially rational solution, allowing municipalities to create and manage energy resources themselves. The more such projects are implemented, the stronger Lithuania's energy independence will be," said Žygimantas Vaičiūnas, Acting Minister of Energy.
Municipal communities are offered a particularly attractive financing model – a grant of up to 50% of the project value and a concessionary loan with a fixed interest rate of up to 2% for the entire 15-year period. In addition, future communities can receive free advisory and technical assistance in preparing to participate in the measure: developing applications, business plans, procurement documents, obtaining permits, or finding suitable sites for power plant projects.
The call for applications was announced on April 9, 2024. The initially sluggish interest from municipalities was replaced by clearly greater interest after the conditions of the measure were adjusted in November 2025. At that time, the mandatory share of the power plant allocated to socially vulnerable residents was reduced from 30% to 20%, and the loan interest rate was reduced from 3% to 2%.
Currently, 14 municipalities have established future communities meeting the measure's requirements. Two municipalities – the Rokiškis district and the city of Šiauliai – have already received funding and are implementing projects. A total of 19.55 million euros is being invested in these projects, and once implemented, they will create 24.8 MW of renewable energy generation capacity.
Another municipality – the Vilnius district – has submitted an application for investments in a 15 MW solar power plant.
Meanwhile, technical assistance is already being provided to the municipalities of Tauragė, Biržai, Ignalina, Visaginas, Kupiškis, Jonava, Druskininkai, Kaunas district, and Švenčionys – business plans and investment applications are being prepared. Other municipalities are actively assessing needs, preparing documents for council decisions, and considering establishing communities.
It is forecasted that solar and wind power plants managed by energy communities established by municipalities will be built and begin delivering real benefits to residents and the public sector in 2027 and later.
These investments will not only contribute to Lithuania's energy independence goals but also help municipalities become more energy self-sufficient, reduce electricity costs, and ensure greater support for residents experiencing energy poverty.
Ministry of Energy info.
