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04/12/2016

Spot power trade starts at new Polish-Lithuania link

Energy

Spot power trade starts at new Polish-Lithuania link

VAT fraud in the energy sector costs the European economy billions of euro each year.

[Nick Page/Flickr]

Poland and Lithuania launched the first spot power transactions yesterday (8 December) at a new electricity cross-border link that will increase Poland’s import capacity, Polish power grid operator PSE said.

PSE said 1.8 gigawatts had been allocated for trade from Poland to Lithuania and almost 86 megawatts from Lithuania to Poland after the two countries tested the new 500-megawatt link at the end of November.

The cross-border link between Poland and Lithuania is a part of the European Union’s plan to create a common energy market, and it would help to reduce the Baltic state’s dependence on power imports from Russia.

The link could also increase Poland’s energy security allowing it to import power from the Nordic countries via Lithuania’s new subsea connection to Sweden.

Poland already has a 600 MW direct connection with Sweden.

Poland is one of the European Union’s most isolated power markets with the ability to import just 2% of the electricity it consumes, experts say.

The European Commission wants cross-border links to equate to at least 10% of a member state’s generation capacity by 2020. 

>> Read: Energy union aims for elusive 10% power grid interlinkage

Background

The European Commission approved in May 2014 an investment of €60 million from the European Regional and Development Fund (ERDF) to complete the construction of the electrical grid between Poland and Lithuania.

This particular project is focusing on the building of the power transmission line between the city of E?k and the Polish-Lithuanian border in the Polish regions Podlaskie and Warmi?sko-Mazurskie. It will help complete the European energy market by integrating electricity energy markets of Poland and the three Baltic States of Lithuania, Latvia and Estonia. This could also help to reduce the dependence of Poland and the Baltic States on external power exports.

In electricity sector, key projects contributing to the enhanced integration of the Baltic States with the EU market are: interconnections between Lithuania and Sweden (NordBalt) and Poland (LitPol Link) to be inaugurated in December 2015, and the second interconnection between Estonia and Finland (Estlink II) that has been operational since 2014. These interconnections are important for the future synchronisation of the Baltic States with the rest of the EU.

On 11 November the Commission adopted a Roadmap for the Energy Union including a list of 195 ‘Projects of common interest’ in the fields of electricity and gas.

>> Read: Commission outlines Energy Union legislative path

Timeline

·  By 2020: About 75% of ‘Projects of common interest’ are expected to be completed

·  2020: Target date to meet the 10% electricity interconnection objective

Further Reading