VMG Group companies already generate half of their required electricity

Volatile energy prices and geopolitical challenges are fundamentally reshaping Lithuania’s industrial landscape. The perception of energy as a standard and predictable cost item is over. In an effort to control production costs and maintain competitiveness, businesses are investing heavily in renewable energy sources and greater energy independence. The sector is entering a new technological phase in which energy storage systems, artificial intelligence, process digitalisation, and CO₂ capture technologies will play an increasingly important role.

Why generation alone is no longer enough
According to data from Litgrid, Lithuania currently ranks second in Europe after Denmark in terms of the share of electricity generated by wind power and sixth in solar power generation. In recent months, Lithuania has regularly produced most of the electricity it consumes, and in some weeks domestic generation has even exceeded national demand.

However, growing generation capacity is no longer, by itself, a guarantee of lower energy costs. This is also evident to the country’s largest industrial consumers. For example, companies within VMG Group currently generate around 50–55% of their required electricity themselves, yet the group is already planning its next stage of development—energy storage and grid balancing solutions.
Energy expert Martynas Nagevičius says that today’s main challenge lies in the economics of renewable energy itself.

According to him, the more solar and wind power plants enter the market, the lower electricity prices become during the hours when these facilities generate the most energy. As a result, businesses today must think not only about generation but also about how energy is used and stored.

“The paradox is that the more green energy there is in the market, the lower prices become precisely when your power plant is generating the most,” says M. Nagevičius.

Businesses are moving from energy consumption to energy management
While the government addresses systemic energy issues, a number of Lithuanian industrial companies are already actively investing in their own energy infrastructure, including solar and wind farms, biomass boiler plants, heat recovery systems, and energy storage solutions.
According to Petras Leknius, CEO of VMG Energy, the group’s immediate objective is to increase its electricity self-sufficiency to 70–80%. Meanwhile, most of the group’s thermal energy demand is already covered by its own generation.

“Renewable energy allows us to significantly reduce dependence on the market. However, solar and wind generation alone cannot guarantee a completely stable energy supply,” says Petras Leknius.
At the same time, the group has already begun preparing for the next stage—energy storage and grid balancing solutions. It is currently developing a 15 MW / 30 MWh battery storage project that will provide balancing services to the energy system in the future.

The group is also consistently reducing its energy consumption. Over the past five years, natural gas consumption across VMG Group companies has fallen from 5.5 million cubic metres to 0.5 million cubic metres per year, representing a reduction of approximately 90%.

The next stage: artificial intelligence and CO₂ capture
Industry is already preparing for another phase of transformation involving the integration of artificial intelligence, the digitalisation of manufacturing processes, and CO₂ capture technologies.

VMG Group is actively assessing opportunities to implement CO₂ capture solutions in the future, particularly given that a significant share of its thermal energy is generated from biomass.

“We have already significantly reduced our use of fossil fuels and the emissions associated with them. Therefore, at the next stage, we are increasingly focusing on biogenic CO₂ emissions and their management. We see CO₂ capture technologies as one of the long-term directions that could contribute to further reducing our emissions footprint and achieving climate goals,” says CEO of VMG Energy.