The six-month Lithuanian presidency of the EU is coming to an end. Energy has featured prominently, with dossiers such as state aid reform, the 2030 policy framework, infrastructure and projects of common European interest, and the guidance package on public intervention. One of the last events in Vilnius addressed energy from various angles, and portrayed challenges and progress for a region which gained independence only 21 years ago.
Increasing integration with the Nordic markets, but also among the Baltic states themselves was the good news that came across in the presentations by industry and by government officials from all three countries. Cooperation in the region had to be built up, but is standard routine today. In energy matters changes have been radical, especially for Lithuania, which closed its Ignalina nuclear power plant in 2009 and suddenly switched from being an exporter of electricity to becoming an importer. Estonia is continuing to exploit oil shale to cover its own demand, but also for export purposes, for example to Finland.
Dependency on gas imports – not necessarily for power generation but also for the chemical industry – was highlighted by multiple speakers, from Lithuanian President Dalia Grybauskaite to Minister of Energy Jaroslavas Neverovicius and Dalius Misiunas, CEO of Lietuvos Energija. Lithuania pays the highest gas prices in Europe, and has seen an increase of more than 50% in the last years. More renewables are set to be developed, and energy efficiency is an important bet too, according to Minister Neverovicius. Meanwhile, Lithuania hopes to decrease its gas dependency through an LNG terminal in Klaipeda, which is also considered as a solution for bringing more flexibility into the system. As for the planned integration into the UCTE network of continental Europe, current pragmatism suggests that DC lines are an intermediate option to avoid disconnection from the Eastern IPS UPS system.
Platts and EURELECTRIC presented global gas and power trends, setting the scene for the discussion in Lithuania and the Baltic States. EURELECTRIC Power Statistics forecasts, the IEA’s World Energy Outlook and Platts all agree that gas will make a come-back in Europe, although at the moment coal is being used much more for power generation than before. However, the development of gas prices remains an open question, especially in light of the increased gas demand in Asia, above all Japan. Parallel sessions discussed infrastructure, gas and power generation issues.
An audience of more than 100 participants represented the power and gas sector of the three Baltic countries, but also the Nordic countries, as well as policymakers. The Ukrainian Minister for Energy had introduced the day with a keynote speech underlining that the experience in the Baltic region was seen by Ukraine as best practice and as a model for Ukraine to follow in terms of market liberalisation and integration.
by Susanne NIES
Union of the Electricity Industry - EURELECTRIC AISBL
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