Feasibility study of Lithuanian industry participation in the value chain of wind energy components (VEGRAND)

 

Project no.: P-REP-21-16

Project description:

The use of renewable energy sources for electricity generation is crucial to reducing carbon emissions. Among renewable energy capacities, wind energy plays a dominant role in the European Union, influencing technological cost reductions and public incentive schemes. In turn, the deployment of wind energy has brought significant socio-economic and environmental benefits in terms of reducing CO2 emissions, avoiding fossil fuels and creating jobs. (Rohe, 2020).

Despite the benefits that are already being gained from the use of wind energy, these opportunities for energy deployment and wider applications are relevant. In Lithuania, the possibilities of using wind energy are quite high. Compared to the European Union market, it is important to assess the possibilities of Lithuanian producers to join the EU wind energy components value chain. The research envisaged in the activities of this project will help to identify Lithuanian producers who have technical capabilities (or will have technical capabilities after certain investments) and can join the EU wind energy components value chain, assess their competitiveness, existing research base, opportunities and prospects for scientific and industrial cooperation. The study prepared under this project should answer a number of questions, including “how can Lithuania become a successful partner in the EU wind energy value chain?” and “what steps and consistency should be taken to achieve Lithuania’s successful integration and further participation in the EU wind energy in the value chain of energy components?”.

Project funding:

Research Council of Lithuania (RCL), Need-driven Research Projects


Project results:

The development of renewable and sustainable energy technologies promotes intensive, efficient, environmentally friendly and sophisticated value creation. In this way, the aim is to minimize the number of value-added transactions and maximize value creation. The value chain model of the wind energy industry allows for a comprehensive analysis of the factors forming the value chain of wind energy components (VEKVG), to determine the overall value creation process.

In order to achieve ambitious goals in the fight against climate change and to create significant economic benefits for the citizens of the European Union (EU), it is important to carry out the production of renewable energy components in Europe itself, and at the same time in Lithuania. In Lithuania, it is proposed to include wind production and energy storage technologies in the EU strategic value chain. A stable and strong industrial sector and research and development efforts are needed for the EU to become a leader in the development of renewable energy technologies.

This Project has developed the concept of the Wind Energy Value Chain (LWG) by showing the location of the Wind Energy Value Chain (LWG) in it. The tendencies and prospects of wind energy development in Lithuania and Europe are also analyzed. An analysis of wind energy component (VEC) production technologies and VEK demand has been performed. The LECVs used in European countries, their structure and features are reviewed. The structure of Lithuanian LECV was identified, its peculiarities and the current state of Lithuanian LECV was analyzed after applying the set of business structure survey indicators. Applying the methods of index analysis, research of competitiveness factors, PEST (Political, Economic, Social and Technological Factors) analysis and survey, the business and competitive environment of Lithuanian companies was examined – its favorability for industrial enterprises in the participation of LECECs. The economic activities of the industry that could form the Lithuanian VEKVG in the future have been singled out, indicating the VEKVs that could be produced in the country, as well as the conditions of participation in the VEKVG on the example of companies have been reviewed. Prospects for the development of VEKVG in political and socio-economic contexts until 2030 are analyzed. The possibilities of Lithuanian business, science and industry to join the VEKVG in Europe have also been fully analyzed. The most promising areas of scientific and industrial cooperation have been identified, cooperation strategies and a preliminary action plan for the successful integration of Lithuanian industry into the IECV have been prepared. During the implementation of the project, it was determined that research and experimental development could increase the opportunities for the country’s industry to participate in LECV and thus create preconditions for new investments and job creation. There are a lot of unresolved issues in the field of low-power wind farms. Considering that there are many restrictions on the construction of high-power wind turbines, it can be stated that the construction of low-power wind turbines will become much wider in the future. Therefore, research to address the problems of low-power wind farms has a very high potential.

Period of project implementation: 2021-02-02 - 2021-07-31

Project coordinator: Kaunas University of Technology

Project partners: Lithuanian Energy Institute, Vytautas Magnus University

Head:
Egidijus Dragašius

Duration:
2021 - 2021

Department:
Department of Production Engineering, Faculty of Mechanical Engineering and Design