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Challenges and options for development of the Lithuanian energy sector

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This paper describes recent changes in the Lithuanian economy and the energy sector. It presents a methodology of energy planning in Lithuania, and describes the main principles of energy demand forecasting based application of econometric models and the simulation MAED model. It also presents a short description of the optimisation MESSAGE model and options for the development of the Lithuanian energy sector. Measures that should be implemented in the Lithuanian energy sector seeking to mitigate the negative consequences of the closure of the Ignalina NPP in 2009 are discussed.

Keywords: economic development, energy supply, energy consumption, energy demand forecasting, Lithuania, optimisation, MESSAGE model, Central and Eastern Europe, CEE countries, energy planning, econometric modelling, simulation

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