Additional Priority scores for CAP farm projects that foresee investments in solar power plants

About this good practice
Problem and context: The Lithuanian agricultural sector faces challenges related to rising energy prices and the effects of climate change. Traditional energy sources in rural areas are not only expensive, but also reduce sustainability. To reduce energy costs and promote organic farming, a practice has been introduced whereby farmers who invest in solar power plants under their CAP farm investment projects are given priority points. This practice not only encourages the introduction of renewable energy sources, but also contributes to the sustainable development of agriculture in Lithuania.
Achievement and implementation of goals: Practice is implemented under Lithuanian 2023-2027 Agriculture Strategic plan to fulfill Lithuania's obligations under the European Green Course and the European Union's Climate Strategy. In addition, it contributes to climate change mitigation goals and the renewal of the agricultural sector.
Important participants and users: The main participants were the Ministry of Agriculture of Lithuania, National (CAP) Paying Agency, independent consultants and the community of farmers themselves. These entities provided both financial support and practical assistance needed for the implementation of solar power projects. The beneficiaries were farmers, who were helped by this practice to reduce energy costs and contribute to the country's sustainability goals.
Expert opinion
Resources needed
Policy changes were required to prioritize photovoltaic (PV) systems in CAP farm investment projects evaluation process. Additional financial and advisory resources were also allocated.
Evidence of success
More than 1,000 solar power plants in agriculture have been installed in Lithuania, the total capacity is more than 80 MW. This made it possible to reduce farmers' energy costs, the share of renewable energy in agriculture increased to 17%. After implementing this practice, farmers saved over 5 million EUR per year for energy bills.
Also, these projects contributed to Lithuania's obligations to reduce CO2 emissions with the goals of the European Green Deal and the climate change strategy.
Potential for learning or transfer
This practice is a successful example of how it is possible to combine the modernization of the agricultural sector and the achievement of environmental goals through the introduction of renewable energy sources. Lithuania has already shared this experience with other EU countries, such as Latvia and Estonia, which have implemented similar initiatives based on Lithuania's example and adapting them to their regional conditions. Similar practices can easily be adopted in other countries, but different legislation and the characteristics of the energy sector should be taken into account.
Key success factors are a clear funding structure, strong public-private cooperation and well-prepared advisory services for farmers.
Further information
Documents
Strateginis_planas 2023-2027.pdf
Priority scores detailed.docx
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
National Paying Agency under the Ministry of Agriculture of the Republic of Lithuania
