| Abstract [eng] |
Electricity is an exceptionally inelastic, strategically important commodity. The production and transmission of electricity are highly technologically sophisticated processes, while the uninterrupted supply of electricity is a public good guaranteed by the state and the cost of failure is enormous. The COVID-19 pandemic had a significant economic, social, and political impact on Lithuania and the countries around the globe. The Lithuanian electricity sector is seeking for a rapid transformation to meet its international obligations and effectively meet the needs of Lithuanian society, but the demand and supply shocks caused by the COVID-19 pandemic have had a strong impact on the sector's operations and electricity prices. Changes in commodity markets, large supply and demand shocks have fundamentally changed the status quo of the electricity sector – in 2020 the sector was hit by historic demand shocks, when in December 2021, a record wholesale price of electricity in the Lithuanian market was recorded. |
