Balti Elektrituru Foorum 2006
Conclusions of the Mini-Fora for Electricity Markets of the Baltic States and Finland
TALLINN, 21 April 2006
1. The second meeting of the electricity market Mini-Fora for the Baltic States and Finland took place in Tallinn, on April 21, 2006. It was organised by the Estonian Energy Market Inspectorate (Estonian Energy Regulator). Representatives of the regulatory authorities, ministries, TSO-s and power traders of Finland, Estonia, Latvia and Lithuania participated on the Mini-Fora.
2. The participants of the Mini-Fora stated that at present congestions are not of major consern for power transmission at the Baltic States. It’s expected, that this situation will remin in the region within next 5 to 10 years period. As it is non-congested region then there was no need to use the capacity coordination mechanism.
3. The Estonian-Finnish DC connection Estlink, with capacity of 350 MW will be commissioned by the end of 2006. According to the exemption granted by the relevant Finnish and Estonian authorities, the capacity of interconnector will be used on commercial bases until 2013.
4. The respective Baltic TSO-s informed about the plans to build additional interconnectors in the future. There are ongoing studies to plan the following interconnectors
5. The TSO-s informed about the future capacity demand in the Baltic region. The electricity consumption and capacity demand is growing at least by 3 per cent in the region within 10 years perspective. The closure of 1 350 MW capacity of Ignalina nuclear power plant by 2009 will not cause any capacity deficit in the region, but it was stated that the power generation in Lithuania will be heavily dependent on gas supply from Russia.
6. The Mini-Fora stated that there are no barriers for implementation of EU regulation No 1228/2003 on conditions for access to the network for cross-border exchanges in electricity. The Inter - TSO Compensation Mechanism (ITC) will be implemented in the Baltic States on the same principles as in other EU member states. The current tariff structure of the Baltic TSO-s includes the L component only.
7. The Finnish TSO, regulator and the representative of Finnish Energy Industries explained the functioning of power transmission and the markets design in Finland. Despite some specific issues, mentioned by the Finnish Energy Industries, the Finnish power market is well functioning and a good example for the Baltic States.
8. The regulators and the representatives of power traders explained the situation of power trading in the Baltic States. It was mentioned that neither the domestic nor the Baltic market is functioning. It was mentioned that the main obstacles are the high market concentration and regulation of end-user electricity tariffs. The electricity markets in Latvia and Lithuania are going to be completely opened by 1. July 2007. According to the derogation granted to Estonia, the Estonian electricity market is going to be partially (35%) opened by 2009 and completely opened by 2013.
9. The specific situation of the Baltic States in regard to the electricity supply from third countries was discussed. The participants of the Mini-Fora recognised the urgent need to agree between the Baltic States on the common import arrangements from the third countries.
10. It was decided to establish a regional co-ordination committee (RCC), which includes the representatives of regulators, TSO-s, ministries and traders. The RCC will be co-ordinated by the Latvian Regulator (PUC). It was agreed, that within one week all interested parties will nominate their representatives to the RCC and the first meeting of RCC will be organised at the latest by June 2006.
11. It was mentioned that the establishment of the joint balancing area within the Baltic States could support the development of Baltic electricity market.