The Baltic Energy Interconnection Plan responds to calls for a more integrated electricity market in the Baltic region, as highlighted by the European Commission's Second Strategic Energy Review in November 2008.
Sweden is expected to drive the plan's implementation forward during the second half of the year, after having declared the development of the Baltic Sea region one of the priorities of its EU presidency.
The plan aims to extend the liberalised Nordic electricity market model to the Baltic states as the basis for a regional market there. This could then be integrated into the Nordic one, the Commission said.
Removing regulated tariffs and cross-border restrictions, separating the activities of Transmissions System Operators (TSOs) and opening the retail market fully are identified as steps to an integrated market that comply with the rules for the future EU internal market (EurActiv 25/03/09).
Infrastructure projects
The plan covers a number of electricity infrastructure projects to link the Baltic states and Poland with the Nordic countries, and reinforce the electricity grid between the three Baltic states. A second set of projects establish interconnections between Nordic countries, including the Fenno-Skan II between Finland and Sweden.
A separate set of electricity interconnections is envisaged between Poland and Germany in order to reduce "loop flows" resulting from wind generation in the North rather than in view of market integration.
Moreover, the Baltic Sea states aim to enhance their energy security by diversifying gas routes and sources. Potential projects include new interconnections and upgrades to existing ones to allow reverse flow, and the development of LNG facilities and gas storages.
Support from stimulus funds
Energy infrastructure projects in the region could receive over half a billion euros of additional support, as many of the proposed projects are earmarked for money from the European Economic Recovery Programme (EurActiv 07/05/09), the Commission says.
"Ending the effective isolation of the Baltic States, which still form an energy island, is an urgent task to deal with. Looking at the actions and projects the plan contains and which are now endorsed by the countries of the region, I am now confident that this objective can be achieved in a mid-term perspective," said Energy Commissioner Andris Piebalgs.
Nevertheless, Kristian Kjaer, chief executive of the European Wind Energy Association (EWEA), pointed out that the projects had already been in the pipeline for the respective TSOs for some time. He said more ambitious pan-European plans were needed to move to a "truly integrated European energy market".
"An upgrade of the existing Poland-Sweden cable should be included in future plans," he argued.
