Energy conservation policy in Lithuania: experiences and problems

At present, Lithuania is facing many fundamental transformations in the energy sector and in the whole economy. The rational and efficient use of all energy carriers in all stages of the energy sector is a permanent objective of the Lithuanian energy policy. Energy conservation can be understood as improved energy efficiency and as a new additional energy source. In particular, large energy saving potential exists in the demand side because consumers over decades were accustomed to cheap energy. However, changes require considerable investments in all sectors of economy and it is impossible to do it under circumstances of a general economic crisis without help from the international community and banking systems. The paper describes the current situation in the Lithuanian energy sector, and provides an analysis of the main problems in the energy conservation policy as well as tendencies of energy demand (by branches of the economy and by energy carriers) and energy intensity. The paper aims to analyse the essential implications of energy efficiency in transition from a centrally planned to a free market economy.