Capacity Mechanism

A capacity mechanism is a measure designed to ensure the adequacy and reliability of the power system, to encourage investment in the emergence of new capacities, and further operation or development of existing capacities. Such mechanism allows creating a transparent, technologically neutral and competition-based system through which the state promotes the capacities necessary to ensure a reliable electricity supply in the country.

The development and implementation of the capacity mechanism is particularly important in implementing the objectives of the Lithuanian National Energy Independence Strategy related to the development of power generation from renewable energy sources, increasing local power generation within the country and reduction of electricity imports and smooth synchronisation of the Lithuanian power system with the continental European power system.