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Lithuania Powers Ahead: Renewables, Storage, and Grid Upgrades Transform Energy Future


In October 2025, Lithuania continued to make significant strides in its energy transition, focusing on expanding renewable generation, energy storage, and grid resilience. The country has been actively developing large-scale battery energy storage systems, with projects such as the 291 MW installations at Kelmė, Mažeikiai, and Kruonis, alongside private initiatives like the 70 MW project in Šalčininkai. These developments are designed to enhance grid flexibility, integrate more renewables, and attract investment confidence.

Regional cooperation has also been a priority. Lithuania, together with Poland, Estonia, and Latvia, launched a €382 million project to strengthen critical electricity infrastructure, particularly to protect against aerial threats and improve transmission network reliability. In parallel, the Lithuanian transmission system operator, Litgrid, initiated a public consultation to expand the LitPol Link interconnection with Poland, aiming to boost electricity trade and enable higher renewable integration. This interconnection is expected to grow substantially by 2027 and reach up to 1,200 MW with the future Harmony Link.

Smaller-scale storage projects are also being encouraged. KN Energies secured funding for a lithium-iron-phosphate storage system at the Subačius terminal, supported by the EU’s Recovery & Resilience Facility. Commercial deployment of storage is advancing as well, exemplified by Lithuania’s first commercial battery energy storage system in Alytus, which has begun providing balancing services to the grid through advanced AI optimisation.

The government has reinforced its leadership to support these initiatives, appointing deputy ministers and advisors to focus on renewables, hydrogen, storage, grid flexibility, and consumer protection. Infrastructure upgrades continue across the country, including reconstruction of 110 kV transmission lines in Panevėžys and northern Lithuania, with portions being replaced underground to improve reliability and reduce visual impact. In addition, a €45 million funding call has been launched to support high-capacity electricity storage systems, targeting a total capacity of 1.5 GW by 2028.

Despite these developments, the system faces operational challenges. Low solar and wind generation combined with maintenance and interconnection constraints led to significant power price spikes in mid-October, highlighting the importance of storage and transmission improvements. Meanwhile, Lithuania is also advancing in hydrogen production, with a new facility at the Port of Klaipėda designed to supply hydrogen for logistics and heavy transport, in collaboration with industry partners.

Large-scale renewable projects continue to attract investment, as seen with the financing of the 314 MW Kelmė wind farm, which is part of Lithuania’s strategy to reach 4–5 GW of green generation by 2030. Looking further ahead, the country is exploring a return to nuclear energy through small modular reactors and fast reactor technology, aiming to integrate nuclear into a system dominated by renewables while enhancing energy security. Overall, October 2025 reflects Lithuania’s multi-faceted approach to its energy transition, combining storage, grid reinforcement, renewable expansion, hydrogen development, and policy reform to secure a resilient and sustainable energy future.