6. Legislation       Both the National Solar Program and one of the main directions of the National Energy Efficiency Program, namely utilization of local and renewable energy sources (RES) could be implemented successfully only if they receive, as in other countries, the Government's assistance. One of the important ways of assistance is in the sphere of the existing legal framework which needs further revision and improvement in order to enhance and speed up utilization of renewable energy resources. By now a lot has been done in this sphere, however new initiatives are needed to promote enhanced utilization of both local and renewable energy sources in the national energy sector.      Energy policy and strategy, including issues of RES, are identified in the Law on Energy, the National Energy Strategy approved by the Seimas and the National Energy Efficiency Program approved by the Government.      Main objectives of the National Energy Policy indicated in the Law on Energy: Promotion of both producers and consumers to effectively use local, secondary and renewable energy sources. Reduction of impact on environment      With regard to recommendations of the EU and Global Solar Program (UNESCO), the National Energy Strategy should be more detailed in defining main means and deadlines in the sphere of RES development.      With regard to importance of RES utilization on national level, the initiative expressed by members of the Seimas to establish on constant basis the Commission for RES utilization development should be supported.      The Law on Energy indicates that the Ministry of Economy is responsible for utilization of RES and implementation of state programs. The Energy Agency at the Ministry of Economy is the main executive institution responsible for development, revision and coordination of implementation of the National Energy Efficiency Program. While implementing the Law on Energy, the Government established the Energy Conservation Fund responsible for funding projects of energy conservation and RES utilization. However, the Fund is not functioning as the initial contribution indicated in the Law on Energy hasn't been transferred.      The Government commissioned ministries, departments, other governmental services, companies and enterprises to produce, supply and consume energy resources and to define directions for development and restructuring of national economy following provisions of the National Energy Efficiency Program. Managers of the state institutions are directly responsible for implementation of the Program in the sphere of their competence. The Ministry of Environment is responsible for natural resources protection and the Ministry of Education and training is responsible for training programs on all the levels, funding and planing of research. The Ministry of Finances must be responsible for investments for RES promotion through privileged taxes, etc. Therefore, activity and functions of all the above mentioned institutions and bodies in the sphere of their competence in RES utilization sector must be analyzed and revised with regard to changing circumstances and requirements.      With a view to promoting construction of independent power producing equipment utilizing RES and increasing their effectiveness, the Minister of Economy issued Decree establishing that "Lietuvos energija" while drawing power purchasing agreements with RES utilizing suppliers (small hydrous and wind farms) must establish power purchase contract prices that equal to power tariffs valid for appropriate power grids the suppliers are connected to. This provision must also be valid for power produced while utilizing other kinds of RES.      In order to enhance science research in the sphere of RES utilization for power and heat production first of all it is necessary: To develop the existing legal framework with special focus on changes in legislation on tax policy in order to: Use part of the taxes for imported fuel (customs duty, green taxes, excise, etc.) for promotion or RES utilization and expand production of equipment to utilize RES; To keep prices for local energy resources on the same level, to reduce taxes for natural resources, VAT, profits taxes, etc. To create preconditions to attract and use both foreign and local private capital for RES utilization To identify and establish quotas for energy production while utilizing local and renewable energy sources. To ensure that local authorities and town (district) Municipalities pay necessary attention for utilization of local and RES and also allocate resources for development and implementation of programs for effective energy procurement of towns (districts) while utilizing local and RES. To promote and develop construction of demo sites of RES utilization while finding and ensuring their funding and compile, generalize and disseminate experience of their construction and operation.

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