Regulatory Sandbox for the Energy Sector

In order to facilitate and promote the development of energy innovation and technologies, the Ministry of Energy has drafted amendments to the Republic of Lithuania Law on Energy whereby a regulatory sandbox for the testing of energy innovation will be created.

The amendments to the Energy Law establish the main principles and criteria for such regulatory sandbox and the rights and obligations of participants in this regulatory approach.

The new legal environment will enable energy innovators to carry out live testing of new products and business solutions. These activities will be supervised by the National Energy Regulatory Council which will also provide consulting.

At present an innovator seeking to test a pilot innovative product or service in the energy area needs a permit. Obtaining such a permit requires lots of time and effort; sometimes live testing is not possible at all.

Another benefit of the regulatory sandbox for innovation in the energy sector – the Ministry of Energy and other relevant institutions will be able to effectively eliminate or mitigate any deficiencies in the energy regulation that will be revealed during such activities.