Electricity prices - Lithuania

Lithuanian Electricity Market Overview

Primary Electricity Sources in Lithuania

Lithuania’s electricity comes from a mix of domestic generation and imports, with a growing emphasis on sustainable sources. Wind power has become the largest domestic source – in 2023 it comprised roughly 42% of Lithuania’s electricity generation. Hydropower (mainly from rivers and pumped storage) contributes around 17%. Other renewables like solar energy have surged from virtually nothing two decades ago to over 800 MW of capacity by 2022, now supplying a little over one-tenth of the country’s electricity consumption. Biomass and other biofuels add a smaller share (a few percent). Thanks to these developments, almost half of Lithuania’s consumed electricity in 2024 was generated from low-carbon or renewable sources.

Despite the rise in green energy, Lithuania remains a net importer of electricity. After the closure of the Ignalina nuclear plant in 2009, domestic generation dropped significantly. By 2019, Lithuania was producing only ~3.6 TWh of electricity while consuming ~11.4 TWh, forcing it to import the majority of its power. Even in 2024, about 42% of the country’s electricity needs were met through imports via interconnections with neighbors. These imports help ensure supply but can raise energy security concerns. Notably, since May 2022 Lithuania has ceased buying electricity from Russia, instead relying on exchanges with EU markets (Nord Pool) and new links like NordBalt (to Sweden) and LitPol Link (to Poland).

In terms of environmental impact, Lithuania is striving to cut fossil fuels. Fossil-fueled generation (mostly gas-fired power from plants like the Elektrėnai complex) now makes up roughly 15–17% of electricity supply, and the goal is to reduce this further. The government’s long-term strategy targets 70% renewable electricity by 2030 and 100% by 2045, moving toward climate neutrality. Major projects – such as onshore and offshore wind farms and expanded solar parks – are underway to reach these goals.

How End-User Electricity Prices Are Formed

For Lithuanian consumers, the electricity bill is composed of multiple components, separated into an unregulated part (the energy supply price) and a state-regulated part. In practical terms, this means:

• Energy Supply Price (Unregulated): This is the base price for the electricity itself, set by your chosen independent supplier in a competitive market. It can be a fixed rate or a rate that varies with the market. The government does not regulate this portion. If you have a fixed-price plan, the rate per kWh stays constant for the contract period; if it’s a variable or dynamic plan, the rate fluctuates with the electricity market (as explained later).

• Network & System Costs (Regulated): These are the delivery fees for transmitting and distributing electricity to your home. They include charges by Litgrid (the transmission system operator) and ESO – Energijos skirstymo operatorius (the distribution operator) for maintaining the high-voltage grid and local lines. This portion is regulated by the state regulator (VERT) and is the same no matter which supplier you use. It often consists of a fixed monthly charge plus a per-kWh distribution tariff. Public service obligations (such as subsidies for renewable energy or cogeneration, often referred to as VIAP in Lithuania) are also part of the regulated costs and are included in the network tariff. In total, these network and public obligation fees typically make up over half of the final electricity price.

• Taxes: The main tax on electricity for households is VAT (value-added tax), which is 21% in Lithuania (applied to the sum of energy + delivery charges). During 2022–2023, the government temporarily compensated part of the price due to high energy costs, but as of 2025 such support is being phased out. There is also a small excise tax on electricity, but for most household consumers the impact is minimal. (In response to the 2022 energy crisis, VAT on heating and certain fuels was cut, but electricity VAT remained at the standard rate.). All prices that suppliers quote to household customers are typically shown with VAT included (denoted as “su PVM”) for transparency.

Putting these pieces together, the final price per kWh you pay is essentially (Energy price + distribution + other regulated fees + taxes). For example, Ignitis (the largest supplier) explains that the total price consists of the supplier’s part (unregulated) and the regulated part; when you lock in a fixed-rate contract, you are fixing only the supplier’s part, while the regulated tariffs may be adjusted annually by authorities. In practice, this means all suppliers face the same underlying network costs and market wholesale prices. Indeed, experts have noted that, apart from temporary promotions, there are only small differences (a few euros per month) in final bills between the major suppliers for a given consumption level. Competition mainly comes through different pricing plans, contract lengths, and perks rather than large price gaps.

Dynamic Electricity Tariffs: How They Work

Dynamic electricity tariffs (also called variable-price plans) are pricing plans where the cost of electricity fluctuates in step with the real-time market price. Instead of paying a fixed rate per kWh, customers on a dynamic tariff pay a rate that changes every hour (or another interval, e.g. daily or monthly) based on the prices in the electricity exchange (Nord Pool for Lithuania’s region). In simple terms, the price follows the wholesale market: when market prices spike, the tariff rises; when market prices drop (for example, on a windy night with abundant wind power), the tariff falls accordingly.

In Lithuania, dynamic tariffs became more prominent with the liberalization of the residential electricity market (2021–2023) and the rollout of smart meters. By definition, a dynamic price contract means the price is tied to an exchange index and updates at least every hour in line with Nord Pool’s day-ahead market. Nord Pool is the Nordic-Baltic power exchange where generators and suppliers trade electricity for each hour of the next day. Lithuania joined this common market in 2012, integrating its pricing zone with Scandinavia and the Baltics. Thus, under a dynamic tariff, each hour’s price for Lithuanian consumers is usually the Nord Pool Lithuania zone price for that hour, plus a small supplier markup. Customers can even see tomorrow’s hourly prices published daily by Nord Pool, allowing them to plan usage.

To have a dynamic tariff, a consumer must have a smart electricity meter that records consumption hour-by-hour and reports it remotely. Lithuanian regulators note that dynamic plans are available only to those with smart meters, since the billing needs to align each hour’s consumption with that hour’s price. By 2025, smart meter rollout is well underway – hundreds of thousands of households have them – enabling more people to choose such plans. EU legislation also supports this: since 2024, the EU Electricity Directive entitles all consumers with smart meters to access a dynamic pricing contract from large suppliers. In Lithuania, the largest providers indeed offer these options, often marketed as “exchange price” or “Nord Pool price” plans.

How are dynamic rates calculated? The formula is straightforward: Hourly Nord Pool Price + Supplier’s Fee + Regulated Charges + VAT. The supplier’s fee usually includes a fixed markup per kWh (to cover the supplier’s margin and costs) and sometimes a fixed monthly charge. The regulated distribution charges and taxes are added as with any plan. For instance, Ignitis’s hourly plan description states that the energy price each hour is taken from the Nord Pool exchange (Lithuanian zone) for that hour, then 21% VAT is applied, and on top of that are added the supplier’s service fee and the state-regulated network tariffs. In Ignitis’s case, the supplier fee for a dynamic plan in 2024 was quoted as €0.119 per kWh on top of the exchange price, plus a monthly admin fee of around €1.36. Other suppliers have similar structures with slight variations – some may charge a lower per-kWh margin but a higher monthly fee, or vice versa.

Legal regulation: Dynamic tariffs for households in Lithuania are offered under the same consumer protection rules as other electricity contracts, with some additional transparency requirements. The regulator (VERT) requires suppliers to clearly inform customers about the risks and benefits of variable pricing – for example, that bills will rise when market prices rise – and allows customers to switch plans or suppliers with minimal hassle if they are unhappy. Thanks to EU rules, any supplier with over 200,000 customers must provide at least one dynamic price offer. In practice, all three major Lithuanian suppliers do so. VERT has even built a price comparison tool where consumers can compare dynamic plans by looking at each provider’s markup (since the underlying Nord Pool price is the same for everyone). Additionally, since July 2023, the comparison calculator includes a “what-if” tool to simulate monthly bills under different future price scenarios, helping users understand how a dynamic tariff might perform if exchange prices rise or fall.

Advantages and considerations: Dynamic tariffs allow active consumers to save money by shifting usage to cheaper periods. For example, running appliances at night or charging an electric car when there is surplus wind can lower your costs. Over the long term, analyses suggest a household could save around 10–15% on energy costs compared to a fixed plan, provided they adapt their consumption habits. Moreover, this pricing promotes renewable energy use – when renewables produce a lot (windy or sunny hours), prices drop and consumers benefit, indirectly supporting green generation. In fact, some suppliers source 100% green electricity for their dynamic plans (purchasing Guarantees of Origin so that all the energy is from renewable sources). However, dynamic pricing also means exposure to price spikes. In times of grid strain (e.g. a cold evening with little wind), Nord Pool prices can jump very high for a few hours, and a dynamic tariff customer will see that reflected in their bill. Therefore, these plans are generally recommended only for those who track electricity prices and have flexibility in usage. The good news is that modern tools make tracking easier – for example, suppliers provide smartphone apps with hourly price graphs and even automation (one can connect smart home devices to respond to price signals). We discuss specific tools in the next section. Overall, dynamic tariffs are growing in popularity in Lithuania as more people get smart meters and seek to optimize their electricity costs in an eco-friendly way.

Major Electricity Providers and Dynamic Tariff Options

Electricity retail in Lithuania has been liberalized, meaning consumers can choose from several independent suppliers. As of 2025, three major providers dominate the household market: Ignitis, Elektrum Lietuva, and Enefit. These three serve the bulk of residential customers and each offers a range of plans including fixed and dynamic pricing. In the past, there were up to six active suppliers (smaller players included names like Perlas Energija, Inregnum, EGTO Energija, and a local utility Birštono Elektra). However, some of the new entrants faced difficulties during the 2022 price crisis – for example, one supplier (Perlas Energija) attempted to switch its customers from fixed to exchange-linked pricing mid-contract due to soaring costs, which led to loss of customer trust and that company’s exit from the market. As a result, the market consolidated, and by 2023 the three largest companies accounted for about 84–87% of the household supply market. These incumbents are financially robust and offer similar price levels, so consumers mostly compare them based on contract terms, service quality, and added features.

Below is a comparison of the major providers in Lithuania that offer dynamic electricity tariffs, highlighting how each one structures its pricing and services for those plans:

Note: All the above providers are licensed by VERT and have to adhere to consumer protection rules. The “regulated part” of the price (distribution, etc.) is identical regardless of supplier. The differences lie in the supplier’s part – e.g. whether they charge a monthly fee or a per-kWh margin, and what value that is. For dynamic (exchange) plans, one convenient way to compare is by looking at the supplier’s markup. As of mid-2023, Ignitis and Enefit were known for very low exchange plan markups (Ignitis about 0.0–0.1 ¢/kWh plus a fee; Enefit 0 ¢ with fee), while Elektrum’s “Pažangus” had a slightly higher effective margin (since it had no fee) but still competitive. These differences typically amount to only a few euros in the monthly bill for an average household. Consumers can use the VERT price calculator to see which plan might yield the cheapest estimate for their usage profile.

Finally, beyond price, consider customer service and tools. Dynamic tariffs work best if you are engaged with your energy usage. Suppliers like Ignitis, Elektrum, and Enefit all provide historical usage data and tips. Ignitis’s EnergySmart app, for example, not only shows prices but also allows you to schedule EV charging when electricity is cheapest. Elektrum’s automation features let tech-savvy users connect smart plugs or thermostats to react to price signals. Such innovations are making dynamic pricing more accessible to the general public, ensuring that even as the market and prices fluctuate, consumers have the information and tools to take control of their electricity costs in Lithuania’s evolving energy landscape.

Peak and Off-Peak Hours

Lithuania 2024 – Average Hourly Wholesale Electricity Price (Nord Pool)