Lithuania to Build 10 Gas-Backed Power Plants in €880 Million Grid Overhaul as Security Fears Override Climate Goals

VILNIUS — Lithuania announced on Tuesday, 10 November 2026, that it will build 10 new power plants costing about €880 million (around $988 million) and divide its electricity network into seven self-sufficient grid zones, in an overhaul driven by fears of sabotage, cyberattacks and extreme weather. The plants, built by private investors, will most likely run on natural gas, the head of the country's grid operator told Reuters — a choice that sits uneasily alongside Lithuania's goal of climate neutrality by 2050.

Litgrid's plan would turn one of Europe's most centralised grids into a patchwork of "energy islands" modelled on Ukraine's wartime electricity system, so unaffected regions could keep the lights on even if power is cut elsewhere.

Illustration: A modern gas-fired power plant and transmission lines in Lithuania — the flexible generation Litgrid says the country needs in emergencies.

What Happened

Litgrid announced the project on Tuesday, presenting a concept for what it calls isolated operation services for the Lithuanian electricity system. Under the plan, the country will be divided into seven electricity system regions — the "energy islands" — each able to operate independently on a temporary basis if the main 330-kilovolt transmission network becomes unavailable. The seven islands cover Vilnius, Kaunas, Klaipėda–Mažeikiai, Panevėžys–Šiauliai, Alytus, Jurbarkas and Utena, defined around the transmission network and its principal grid nodes.

Building the islands will require 10 new power plants with a combined capacity of 800 megawatts — each sized at 50 to 100 megawatts and sited near key transmission nodes. Private investors are to build them, free to sell power into the market while receiving separate payments from Litgrid for emergency standby capacity. The private sector is expected to invest approximately €880 million.

The new plants must meet demanding conditions: start within 30 minutes, offer flexible amounts of power, and run for two weeks without interruption in an emergency — requirements that, according to Litgrid chief executive Andrius Šemeškevičius, rule out renewables. Gas is "the obvious technology" for the new plants, he told Reuters, although the tenders will not call for a specific technology. "It's the most mature technology, easily available... investors are not willing to experiment on large scale," he said. "But again, it is up to the market to decide."

The auctions will be technology-neutral, Litgrid said, allowing for hydrogen, biomethane or liquid fuels as well as gas. But the practical demands — rapid start-up, flexible output and continuous generation for weeks — point firmly towards gas, which is intended to cover periods of little wind or sun that in northern Europe can last for days or even weeks. "You need to cover those hours, days, sometimes weeks," Šemeškevičius said. "You cannot provide energy for a week from a battery."

The threats are explicit. Sabotage, cyberattacks or extreme weather could push Lithuania's centralised grid into a prolonged blackout if key nodes are taken out, Šemeškevičius said. "You see the increasing threats, geopolitical threats... We have two unfriendly neighbours. We are surrounded by them," he told Reuters, referring to Russia and Belarus. "You always think, what will we do if our network is attacked and we are not able to stop the cyberattack?" In isolated operation, power would be allocated by priority — emergency services and hospitals first, then households, businesses last — with households getting at least eight hours a day in a worst-case scenario, according to reporting of the plan, and a 24-hour supply possible with enough sunshine and wind.

Background

Lithuania's energy system has been remade since Russia's full-scale invasion of Ukraine, and the new plan is the next stage of that transformation. In February 2025, Lithuania, Estonia and Latvia permanently disconnected from the Russia-controlled IPS/UPS grid and, after an isolated-operation test, synchronised with the continental European grid — a project in which €1.6 billion, mainly from European funds, had been invested. European Commission President Ursula von der Leyen, in Vilnius for the occasion, called it a historic day that freed the European Union from "threats and blackmail".

But synchronisation solved only part of the problem. It ended dependence on a grid controlled from Moscow, yet left Lithuania with a centralised system in which damage to a few key nodes could still darken the whole country. Ukraine's experience has shown what that means: Russia has repeatedly targeted Ukraine's power plants and substations, and Kyiv has kept electricity flowing in part by running its system as a patchwork of semi-independent zones. Litgrid said it developed the energy islands model taking Ukraine's experience into account.

The new push continues defensive work already under way. Reuters reported that Lithuania has been covering key energy infrastructure with concrete and planning for a fortified key substation near Russia, as part of efforts against drone attacks. Energy Minister Lukas Savickas called the energy islands model one of Lithuania's most important energy resilience projects. "Energy security is not only about protecting infrastructure, but also about maintaining operations when part of that infrastructure has already been damaged or is temporarily unavailable," he said.

At the same time, the plan cuts across Lithuania's climate commitments. The 2024 energy strategy called for becoming climate-neutral by 2050 and growing renewables capacity to 10.3 gigawatts by 2030. Wind and solar capacity has grown rapidly, but the announcement is an admission that renewables alone cannot guarantee security of supply. "It is reality that renewables in our region cannot fulfil all the demand," Šemeškevičius said. Across northern Europe, long windless and sunless periods, known as dunkelflaute, can stretch for days or weeks — too long for batteries to bridge. One reassurance for climate watchers: he said national gas consumption would probably not change significantly, because the new units would replace older, less efficient gas-fired plants.

Illustration: Lithuania's planned seven "energy islands" would let each region of the country keep operating independently if the main transmission network fails.

Why It Matters

The Lithuanian decision matters well beyond its borders, because it makes explicit a trade-off European governments have so far preferred to leave implicit: when energy security and climate ambition collide, security is winning. Lithuania is a small country of fewer than three million people on the front line of the confrontation between NATO and Russia, bordering both Russia and its ally Belarus. Other exposed governments may reach the same conclusion.

For the climate movement, it is a reminder that the renewable transition still has a reliability gap no country has fully solved. But a power system must work on the worst day of the year, not the average one — and the worst Baltic days are cold, dark and windless, when heating demand is highest. Until long-duration storage or another dispatchable clean technology becomes cheap and available at scale, governments that cannot tolerate blackouts will keep reaching for gas turbines, which start quickly and run for weeks on end.

For Lithuania's neighbours, the plan is a test case in a new kind of resilience thinking. Estonia and Latvia share the same history and exposure to Russian pressure. The concept borrows directly from Ukraine's wartime improvisation, but Lithuania is the first country to adopt it as a deliberate, peacetime design principle backed by hundreds of millions of euros. If it works, it could become a template for other small, exposed states.

There are also hard questions about cost and fairness. Litgrid estimates the new services will add 0.67 euro cents per kilowatt-hour to the transmission tariff after 2033, a cost that will ultimately fall on consumers, though the operator argues the plants will also help lower price peaks and average wholesale prices. And the emergency priority system — hospitals first, households second, businesses last — is a deliberate social choice that will be tested in public debate, along with where the new plants will be built. Local communities may object to plants near their homes.

Finally, the plan matters for what it says about the durability of Europe's break with Russian energy. The Baltic states spent years and billions escaping a grid controlled from Moscow. But the plan recognises that political independence is not physical resilience: a grid synchronised with Europe can still be knocked out by a single attack, a cyber intrusion or a severe storm. Seven islands that can each stand alone would make the Baltic break with Russia irreversible in practice, not just in law.

Illustration: Wind turbines and solar panels in northern Europe — renewables that, Litgrid says, cannot alone cover demand during long windless, sunless periods.

What Happens Next

The immediate next step is legislative. The model can only proceed once planned changes to Lithuanian law and regulation are approved, and Litgrid has opened a public consultation running until 10 December 2026. A public presentation for market participants is scheduled for 25 November, and an updated concept is expected in mid-January. Subject to approval, the first auctions are expected in 2027.

Winning bidders will have five years to build their plants and must then provide isolated operation services for a further 15 years. The full model is expected to be operational by 2033, but the first results should come sooner: Lithuania aims to have the first four islands — Vilnius, Kaunas, Panevėžys–Šiauliai and Klaipėda — running as early as 2028, by upgrading existing plants to enhance their emergency capability, even if not yet at full capacity.

Whether the timetable holds depends on several things: the legislative process, which must define the auctions, standby payments and technical standards; investor appetite, with private companies asked to commit roughly €880 million to plants whose main purpose is to stand ready for emergencies that may never come; and local acceptance, with communities near proposed sites likely to scrutinise the plans closely.

Litgrid has not yet said exactly where each plant will be sited, beyond the broad island regions, nor published the detailed technical requirements for bidders. The consultation results, due after 10 December, will show how much pushback the plan faces from environmental groups, local residents and the renewables industry. And the first auction, expected in 2027, will reveal whether investors really do choose gas — as Šemeškevičius expects. For now, Lithuania has made its choice clear: a grid that can survive an attack matters more, in its grid operator's judgement, than the purity of its climate record.

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FAQ

Why is Lithuania building gas power plants if it wants to be climate-neutral by 2050?

Lithuania's 2024 energy strategy still targets climate neutrality by 2050 and 10.3 gigawatts of renewables by 2030. But Litgrid says renewables in the region cannot cover all demand alone, especially during long windless and sunless periods. The new plants are emergency backup that can start within 30 minutes and run for two weeks without interruption — a job batteries and renewables cannot currently do. Litgrid also says gas consumption will probably not change significantly, because the new units will replace older, less efficient gas-fired plants.

What are Lithuania's "energy islands"?

The energy islands are seven regions — Vilnius, Kaunas, Klaipėda–Mažeikiai, Panevėžys–Šiauliai, Alytus, Jurbarkas and Utena — able to operate independently on a temporary basis if the main 330-kilovolt transmission network becomes unavailable, for example after sabotage, a cyberattack or a natural disaster. The concept is modelled on Ukraine's wartime electricity system. Ten new plants totalling 800 megawatts, plus upgrades to existing plants, will make the islands work.

When will the new power plants be built?

Subject to legislative approval, the first auctions are expected in 2027. Winning companies will have five years to build their plants and must then provide isolated operation services for 15 years. The full model should be operational by 2033, but the first four islands — Vilnius, Kaunas, Panevėžys–Šiauliai and Klaipėda — could be running as early as 2028, using upgraded existing plants. A public consultation runs until 10 December 2026.

Will the new plants increase Lithuania's gas consumption?

Probably not significantly, according to Litgrid chief executive Andrius Šemeškevičius, who told Reuters that national gas consumption would likely stay broadly flat because the new units would replace older, less efficient gas-fired plants. Gas is "the obvious technology", but the tenders will be technology-neutral, so hydrogen, biomethane or liquid fuels could also be used.

What happens to households if Lithuania's grid is attacked?

In isolated operation, power would be allocated by priority: emergency services and hospitals first, then households, with businesses last. According to reporting of the plan, households would get electricity for at least eight hours a day in a worst-case scenario, and a 24-hour supply would be possible with enough sunshine and wind. The aim is that no region is left entirely without power, even if the main transmission network is knocked out.

Sources

• Reuters — "Security fears push Lithuania toward gas-backed power despite climate goals" (10 November 2026): https://www.reuters.com/business/energy/security-fears-push-lithuania-toward-gas-backed-power-despite-climate-goals-2026-11-10/
• Reuters — "Lithuania to build 10 new power plants, boost grid resilience against sabotage" (10 November 2026): https://www.reuters.com/business/energy/lithuania-build-10-new-power-plants-boost-grid-resilience-against-sabotage-2026-11-10/
• Litgrid — "Litgrid unveils energy islands model: separate parts of Lithuania's grid will be able to operate independently during major disruptions" (10 November 2026): https://www.litgrid.eu/en/news/litgrid-unveils-energy-islands-model-separate-parts-of-lithuanias-grid-will-be-able-to-operate-independently-during-major-disruptions
• Europe Says (reporting on LRT) — "Lithuania plans ten new power plants to enhance grid resilience" (10 November 2026): https://www.europesays.com/3365802/
• Energynomics — "Baltic countries permanently disconnected from Russia's electricity grid yesterday" (10 February 2025): https://www.energynomics.ro/en/baltic-countries-permanently-disconnected-from-russias-electricity-grid-yesterday/