About this report

Government action plays a pivotal role in ensuring secure and sustainable energy transitions. Energy policy is critical not just for the energy sector but also for meeting environmental, economic and social goals. Governments need to respond to their country’s specific needs, adapt to regional contexts and help address global challenges. In this context, the International Energy Agency (IEA) conducts Energy Policy Reviews to support governments in developing more impactful energy and climate policies.

This Energy Policy Review was prepared in partnership between the Government of Lithuania and the IEA. It draws on the IEA’s extensive knowledge and the inputs of expert peers from IEA Member countries to assess Lithuania’s most pressing energy sector challenges and provide recommendations on how to address them, backed by international best practices. The report also highlights areas where Lithuania’s leadership can serve as an example in promoting secure and clean energy transitions. It also promotes the exchange of best practices among countries to foster learning, build consensus and strengthen political will for a sustainable and affordable energy future.

PublishedJuly 2025

LicenceCC BY 4.0

Press release

ShareCite

Online table of contents

• 
  

   

  
  
  

  1.0

  
  Executive summary
  
  

  Read online

  
  


• 
  

   

  
  
  

  2.0

  
  Infographic
  
  

  Read online

  
  

Key recommendations

1. 
   

   1Implement the National Energy Independence Strategy in incremental steps, prioritising actions with clear benefits at low risks.

   
   


2. 
   

   2Boost energy performance in buildings, particularly multi-apartment buildings, by removing barriers to deep renovations.

   
   


3. 
   

   3Enhance the efficiency and diversification of district heating supply by enabling necessary infrastructure investments.

   
   


4. 
   

   4Ensure a predictable long-term planning framework to attract cost-efficient investments in new electricity generation.

   
   


5. 
   

   5Provide incentives for proactive grid expansion and effective use of existing grid capacity.

   
   


6. 
   

   6Increase flexibility in the electricity system by unlocking the potential for demand-side response from new consumption.

   
   


7. 
   

   7Reform the net-metering system to incentivise self-consumption that provides flexibility and grid services.

   
   


8. 
   

   8Strengthen the role for environmental taxation to drive efficiency gains and emissions reductions in the transport sector.

   
   


9. 
   

   9Push modal shift to improve transport system efficiency in both rural and urban areas.

   
   


10. 
    

    10Accelerate electromobility through targeted action on lead segments in the road transport sector.