Abstract
The paper presents a study, which describes the current governance model of the electricity sector in Lithuania. Electricity and energy production and distribution is highly regulated worldwide. This is also true in Lithuania, where the electricity sector is highly politically prominent, and policy is highly centralized. There are geopolitical concerns towards Russia, which is an important supplier of electricity, and Lithuania’s grid is highly integrated with that of Russia. In addition, Lithuania is a small country dominated by a small number of large state-owned producers and has no regional administrations. Lithuania rhetorically has adopted increased citizen participation as a strategic policy goal. The study investigates how far the rhetorics are followed up by policy planning, implementation, and development of new governance modes. The authors base the study on interviews with 19 experts and regulation analysis. The study found that regulation process is transparent, but this causes lower public interest and consequently lower citizen participation. Existing stakeholder involvement at the policy level is highly arbitrary and favorable to large electricity producers. As production is set to decentralize, this has the potential to overburden the regulatory system and cause conflict between different producers.
Highlights
Electricity supply directly influences the quality of life for all; it is a fundamental economic activity, which is a prerequisite for most other activities in modern societies
Electricity and energy production and distribution is highly regulated worldwide. This is true in Lithuania, where the electricity sector is highly politically prominent, and policy is highly centralized
There are geopolitical concerns towards Russia, which is an important supplier of electricity, and Lithuania’s grid is highly integrated with that of Russia
Summary
Electricity supply directly influences the quality of life for all; it is a fundamental economic activity, which is a prerequisite for most other activities in modern societies. United Nations “Agenda 21” explicitly states that public authorities must fully cooperate and consult with residents, take into account their needs and traditions, including them in the management of natural resources of the country and similar programs (Nefas, 2016) This statement directly affects all energy source extraction, energy production and distribution. Highly centralized political decision-making and political prominence of energy policy in national politics has on multiple occasions led to questions being raised whether electricity sector is governed in the public’s interest This aim of this article is to present a study detailing how formal orientation towards citizen participation is expressed and how these outcomes relate to the structure of the electricity sector, and to discuss what challenges are likely to occur in the near future as structural changes in the sector accelerate. The article contains four sections: (i) a discussion on theoretical assumption on the benefits of citizen participation and factors encouraging that participation, (ii) an overview of the empirical study design, and analyses of (iii) how the current structure of the electricity sector impacts citizen participation, and (iv) what governance challenges currently developing structural changes will pose in the near future
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