Lithuania has very limited energy resources of its own. The main source of electricity production in Lithuania is Ignalina NPP. Over the last five years, it has generated 80–85% of the total electricity production. The anticipated closure of this nuclear power plant in 2010 will decrease the diversification of fuel supply and there is no huge potential for renewable energy use in Lithuania. Only biofuel, hydro and wind power can be considered as potential renewable energy sources in Lithuania.
The share of renewable energy sources in the Lithuanian primary energy supply is the lowest among the three Baltic states (Estonia, Latvia and Lithuania), though the trends of development are positive. The Lithuanian national energy strategy adopted in 2002 sets the strategic priorities of Lithuanian energy sector development. One of the main strategic priorities is striving to achieve a share of renewable energy sources in primary energy supply of12% by 2010. The strategy of development of the sector of indigenous renewable and waste energy resources states that in 2000, the share in the overall primary energy balance of indigenous, renewable and waste energy resources (indigenous crude oil excluded) amounted to about 9% in Lithuania. The target is to ensure that approximately 2 million tons of oil equivalent of the above resources are used per year by 2010.