External costs of electricity generation options in Lithuania

•The external costs of electricity - the most important environmental criteria shaping decisions within the power sector.•The best suited electricity generation technologies in Lithuania are hydro and wind having the lowest external costs.•The assessment of external costs provided that future energy policy in Lithuania should be oriented towards the renewables.

This article deals with external cost of electricity generation in Lithuania. The external costs of electricity generation are the most important environmental criteria shaping decisions within the electricity system. External costs of electricity generation were calculated based on ExternE methodology for Lithuania during EU (European Union) Framework 6 project Cost Assessment for Sustainable Energy Systems (CASES). The article presents the methodology and results of external costs of electricity generation in Lithuania. The assessment of external costs provided that future energy policy should be oriented towards the renewable energy generation technologies having the lowest external costs. External costs for electricity generation technologies were analysed in terms of external costs categories, electricity generation technologies life cycle stages and time frame 2010–2030.