The European Bank for Reconstruction and Development obliged to prepare a study of the market demand for energy efficiency projects in the public sector of Lithuania (hereinafter – the study). This study analysed the market of services of energy services companies (hereinafter - ESCOs) in Lithuania: it estimated the potential of energy saving in segments of public buildings and street lighting as well as the private sector's ability to provide ESCO services, it determined the greatest barriers to the development of the ESCO market, and provided possible solutions to overcome those barriers. The report consists of four sections. The first section provides the evaluation of energy efficiency services market: it overviews the fund of public buildings and street lighting equipment, renovation programmes implemented in recent years, analyses the possible renovation scenarios, assesses the readiness of the private sector and the ability to take the ESCO projects and potential funding mechanisms. The main obstacles to be overcome in order to encourage the development of the ESCO market in Lithuania are specified in the second chapter. Proposals on how to remove these obstacles are provided in the third section. Calculations showing how the development of the ESCO market will affect the economy of Lithuania are provided in the fourth section.