RECs and CECs
In Lithuania, a new law on renewable energy has been approved which allows the establishment of renewable energy communities (Republic of Lithuania 2020). Members of energy communities include residents, municipal institutions, and small and medium-sized businesses. At least five members or shareholders have to be natural persons with voting right. Natural persons also have to hold at least 51% of all votes and have to live in the municipality of the production plant or a neighbouring municipality. A member or shareholder cannot have more than 20% of the votes in another energy producing company. If a REC is founded by already existing legal persons, the above mentioned preconditions have to be met by at least 51% of the members of these legal bodies.
Renewable energy communities will be able to design and manage power plants, and to produce, consume, store, and sell the generated energy. The new law fosters the establishment of renewable energy communities by introducing a beneficial framework simplifying the purchase and sale agreements. In addition, prosumers with an independent electricity supplier will be reimbursed for excess energy. RES
producers within RECs will further be exempt from the obligation to have a license as an independent electricity supplier and will be compensated if there is an interruption in electricity transmission for more than 336 hours in two years. Moreover, the spatial planning process is simplified for renewable energy
plants below 500 kW (Ministry of Energy of the Republic of Lithuania 2020).
Source: Frieden et al., 2020