AST and Elering start public consultation on updated capacity calculation methodology for trade with Russia

Market

From Wednesday (15.09.2021), Litgrid applies a new methodology for calculating transmission capacity on the Belarusian-Lithuanian border, which reduces the opportunities for electricity sales from Russia. Exact amount of reduced capacity for trade with Russia cannot be indicated due to unpredictability of value for the total transfer capacity of Lithuanian – Belarus cross-section calculated by Lithuanian transmission system operator.

Augstsprieguma tīkls and Elering has not supported Litgrid Methodology on Cross-Zonal Capacity Calculation and Allocation with Third Countries unilaterally developed by Litgrid and approved by Lithuanian regulatory authority. Litgrid's goal in implementing the new transmission capacity methodology is to reduce the opportunities for electricity imports from third countries and to prevent the physical movement of electricity generated at the Belarusian nuclear power plant to Lithuania.

Due to Litgrid's new methodology, Elering and Augstsprieguma tīkls will have to update the transmission capacity methodology currently agreed between the two companies and currently in practice for the import of electricity from third countries to Latvia. The purpose of the planned change of the Estonian and Latvian system operators is to eliminate the multiple limitation of transmission capacities resulting from the possible impact on Lithuanian electricity infrastructure. A public consultation on the new methodology has been started and Augstsprieguma tīkls and Elering invite market participants to provide their opinion.

According to the Estonian and Latvian system operators, no additional restrictions on electricity imports from third countries are necessary, as the current transmission capacity solution and legal requirements also prevents nuclear energy produced in Belarus from entering the Baltic electricity market.

Currently, the maximum possible transmission capacity for commercial electricity imports from Russia to Latvia is 970 megawatts. Prior to the beginning of November 2020, when the tripartite agreement on transmission capacity of the Estonian, Latvian and Lithuanian system operators was in force, the maximum possible transmission capacity was 1,250 megawatts. It is expected, that imports of electricity from Russia will end completely with the synchronization of the electricity systems of the Baltic States with the continental European system.

 

Pursuant to the decision of  Cabinet of Ministers of Republic of Latvia on 31 August 2021, AS " Augstsprieguma tīkls" and Elering AS jointly developed Methodology on cross-zonal capacity calculation and allocation with Russia (hereinafter - the Methodology).

Stakeholders are invited to express their opinion on the developed Methodology by 23rd September 2021 by sending your opinion to the e-mail address: consultations@ast.lv.

Documents: 1) Methodology project (in English). 2) Explanatory document (in English).