Policies and energy consumption-driven trends facilitating development of the value chain for wind energy component manufacturing in Lithuania

Abstract

The paper is aimed at analysing policies and energy consumption related trends motivating the development of the value chain for wind energy component (WEC) manufacturing in Lithuania. A comparative literature review and statistical data (2000–2022) analysis were employed for the purpose. The policy overview revealed that investment, climate and energy policy, and related measures establish the preconditions for the entry of manufacturing enterprises into the value chain for WEC as they are creating the demand for domestic and foreign WEC. The results of statistical data analysis showed that from 2009 through 2019, the annual rate of primary energy consumption (PEC) decreased by an average of 0.5% per year, and in 2020 as much as 8.5% due to the COVID-19 lockdown in the European Union (EU). Though the EU countries are still dominated by fossil fuels and related carbon dioxide (CO2) emissions are high (2.8 Gt in 2022), over the last decade, the use of renewable energy sources (RES) was growing rapidly, with a tenfold increase in solar energy and a threefold increase in wind energy consumption. As a clean energy technology, wind power plants (PPs) have the highest CO2 emission reduction potential per MW; also, wind energy is among the cheapest sources of electricity production. Since the EU is a worldwide leader in installations of wind energy capacity and technology deployment, it provides a solid basis for further development. Currently, most of the off-shore plants are operating in the North Sea, but with the new wind parks in the Baltic, Black and Mediterranean seas as well as in the Atlantic Ocean, wind energy could meet more than 80% of electricity demand in Europe. The implementation of wind energy projects requires development of WEC manufacturing activities in EU countries.