Energy production in Lithuania has long depended on imported oil, natural gas, and coal. After World War II (1939–45), Lithuania had no capacity to generate electricity. By the late 1980s, there were seven electricity-generating facilities, including one hydroelectric and one nuclear power station. In 2000, net electricity generation was 11.3 billion kWh, of which 20.2% came from fossil fuels, 3.1% from hydropower, and 76.7% from nuclear energy. In the same year, consumption of electricity totaled 6.9 million kWh. Total installed capacity at the beginning of 2001 was 5.8 million kW. With power production substantially exceeding consumption, Lithuania exports electricity to Latvia, Russia, and Belarus, although shipments to Belarus have been interrupted due to payment problems. The Ignalina nuclear plant has twin 1,300 MW Chernobyl-type reactors, which produced 70% of the country's electricity in 2000.
Lithuania had 12 million barrels of proven oil reserves in 2002, but potential onshore and offshore reserves could be much greater. Oil production in 2000 was 4,200 barrels per day, with consumption of 60,000 barrels per day, so Lithuania imports the bulk of its oil, mostly from Russia. Lithuania is also a net natural gas importer, with consumption of 2.6 billion cu m (29 billion cu ft) in 2000. Russia's Gazprom is a major source of the country's gas imports. In 1995, the Lithuanian government began authorizing the partial privatization of enterprises in the energy sector, including Lithuania Gas, the Ignalia nuclear plant, the Mazheikiai oil refinery, and the Fatotiekis (Pipeline) company.