Use of the grid

Updated: 01.10.2017

Author: Jurga Tallat-Kelpšaitė

There is a priority purchase obligation for heat produced from renewable energy sources. Heat suppliers are obliged to purchase all renewable heat generated by independent heat producers that is cheaper than the heat produced by the heat supplier himself and which meets requirements for security of supply as well as quality and environmental specifications, unless the supply of the renewable heat by independent heat producers exceeds heat demand of consumers. If heat from renewables is produced by two or more independent producers, priority is given to the one whose selling price is lowest (Chapter IV Art. 25 Law on Energy from Renewable Sources). Independent heat producers shall supply their heat to the heat transmission network in accordance with the technical conditions set by the heat supplier. Moreover, they have to follow the instructions of the transmission network dispatcher (Chapter IV Item 18 Resolution No. O3-74/2013).


Process flow

Heat from independent heat suppliers is purchased according to the purchase and sale agreement signed between the independent heat producer and the heat supplier. When entering into such an agreement, the independent heat producer is obliged to submit to the heat supplier findings of the State Energy Inspectorate, stating that the renewable heat generation device complies with the applicable technical and operational requirements (Chapter II Item 8 Resolution No. O3-74/2013). In order to secure a reliable operation of the heat supply system, the independent heat producer is responsible for the adequate technical condition of his RES-H facilities (Chapter II Item 5.2 Resolution No. O3-74/2013). The independent heat producer has to cover actual balancing costs incurred by the heat supplier if he:


  • fails to supply the agreed amount of heat or the supplied heat fails to meet quality requirements set in the Resolution No. O3-74/2013 (Chapter II Item 5.3 Resolution No. O3-74/2013)
  • supplies a greater amount of heat than agreed (Chapter II Item 5.4 Resolution No. O3-74/2013)

Priority to renewable energy

  • Priority to renewable energy
  • Non-discrimination

There is a priority purchase obligation for heat produced from renewable energy sources (Chapter IV Art. 25 Item 1 Law on Energy from Renewable Sources). In addition, heat suppliers cannot discriminate independent heat producers when operating, maintaining, managing and developing the heat transmission networks. Heat suppliers cannot establish any discriminatory conditions for the purchase of heat generated by independent producers, groundless reduce the amount of purchased heat or consumer demand, or cause additional connection costs to be covered by the independent heat producers (Chapter VII Item 33 Resolution No. O3-74/2013).


As long as an independent heat producer complies with all the requirements, the transmission and purchase of heat generated by this producer may be terminated or suspended only in order to protect public interests during heat network maintenance work. In case of the planned maintenance (repair) work the RES-H facilities of the independent heat producer may be disconnected for the period of up to one month. The independent heat producer has to be informed about the planned curtailment no later than 20 calendar days in advance. In case of emergency, the heat supplier can disconnect the independent heat producer immediately after notification but only for the period of emergency (Chapter VI Item 25 Resolution No. O3-74/2013).

Distribution of costs


The generation and purchase of heat produced from renewable sources is a public service obligation and therefore the costs are passed on to the heat consumers via the heat price (Chapter II Art. 4 Items 1, 3 Law on Heat Sector).


Further information