"Lithuania is among the EU's leaders in terms of progress in renewable energy. Together with Luxembourg, today we show how to jointly pursue the EU's common renewable energy targets," Energy Minister Žygimantas Vaičiūnas said in a press release.
"Today we turned what was a theoretical possibility before now into a practical instrument of bilateral success," he said.
Under the deal, Lithuania will transfer a part of its surplus to Luxembourg between 2018 and 2020 and will be paid at least 10 million euros by 2021 at the latest. The Baltic country will invest the proceeds in new renewable energy projects and research.
The EU has set a target of at least 20 percent of energy consumption from renewable sources by 2020. Lithuania reached the target back in 2014. The share of renewable energy in the country currently amounts to 26 percent and is expected to rise to 30 percent in 2020.
The bloc's legislation allows member states that exceed the target to make arrangements for the statistical transfer of an amount of renewable energy to member states that cannot meet their national targets due to their geographical location or limited natural resources.