Another energy island success story

CEO Simon Coulson shares his thoughts on Lithuania's solar cap, using Ireland as a success story

Published:
October 28, 2022

Just two connections to other electrical systems and a third is planned; a hydroelectric power plant built in the 1970s, a "zeppelin sky" and natural gas turbines. No, it's not Lithuania, it's Ireland, only a good decade ago. Today, this energy island has already achieved a staggering 75% share of renewable electricity generation sources in the transmission grid and has even greater ambitions. So why doesn't Lithuania learn from the Irish?

In July, Lithuania introduced a 2 GW total capacity limit for commercial solar power projects. The main argument is that the chaotic development of production capacities that are more difficult to predict can harm the stability of the transmission network.

Indeed, perhaps certain unfinished domestic administrative works of Lithuania could have led to the fact that part of the solar parks that have reserved network power are speculative. I have no doubt that Lithuania will be able to sift the wheat from the chaff in this matter. However, a much more surprising part of the argument for stopping solar power is the concern about the impact of renewables on grid stability.

Aura Power decided to invest in Lithuania due to the favourable legal, administrative, climatic and technical conditions for the development of solar energy. A strong electricity transmission network has been developed in Lithuania to serve the nuclear power plant. The country has the Kruonis hydro-accumulation power plant, an excellent tool for grid balancing. Let's add a lot of non-forested land, sufficient solar radiation, low local production and an even smaller share of renewable sources in it, the goals of the EU and Lithuania's own green economy, and we have one of the most promising markets for the development of solar energy.

Today, Lithuania is very reminiscent of Ireland's situation a good decade ago. Ireland was also (and still is) an energy island with two sea links to the island of Great Britain. A decade ago, about half of Ireland's electricity generation was gas, and the country's only hydro-storage power station, Turlough Hill, is practically Kruonis' annual, only three times less powerful. Only unlike in Lithuania, renewable electricity sources already make up 75% of Ireland's transmission network, the country already has almost 5 GW of wind power plants on land, the same amount of offshore wind is planned, and solar and energy storage projects are being built. The Irish are therefore certain to reach the target of 95% renewable electricity by 2030. purpose. Being in even worse circumstances than Lithuania, that is, without synchronization with the electricity markets of other countries.

A key reason for Ireland's renewable energy success is smart, high-accuracy generation forecasting and demand response management. A decade ago, Ireland was also worried about whether the island's grid would be able to handle weather-dependent electricity generation. However, the state managed to reorient itself from a few large electricity producers to hundreds of small ones, and extremely high accuracy weather or consumption forecasts and medium and large consumers with smart devices that allow to limit electricity consumption as needed or, if possible, supply to the grid, contribute to the stability of the network.

Therefore, with one of the smallest domestic electricity generation capacities in the entire EU, a negative electricity import balance and one of the highest electricity prices on the stock exchange, Lithuania should today, more than ever, abandon restrictions on renewable electricity production, rely on good practices and change attitudes.

Of course, in Ireland too, this transformation presented many technical challenges, but the Irish simply did not look back and looked for opportunities - smart technology, accurate forecasting, user engagement, aggregators and more. Ireland has historically been an importer of electricity, but by consistently increasing the share of renewable sources, the country has been an exporter since 2016.

British Ambassador Brian Olley spoke about the fact that Lithuania can become an electricity exporter again this summer in Dūkšte, presenting to the community the largest British capital investment in Lithuania - A 375 MW solar power plant with an investment of €300 million. To many residents, this sounded too ambitious, but the example of Ireland shows that it is realistic. You just need to look wider and look for opportunities, not limit them.

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