The Estonian, Latvian and Lithuanian electricity Transmission System Operators (TSOs) have agreed on unified and coordinated use of the Baltic electricity infrastructure, the top priority of which being the interests of network consumers.
Today, on March 15, 2013, in Vilnius, the Heads of the Baltic TSOs: Varis Boks of the Latvian TSO Augstsprieguma Tikls, Taavi Veskimägi of the Estonian TSO Elering and Virgilijus Poderys of the Lithuanian TSO Litgrid signed an agreement on the principles of calculation and allocation of the cross-border capacity within Baltic States and with third countries. The agreement is in utmost importance for successful further integration of the Baltic electricity markets. Previously, each transmission system operator used to calculate intersystem capacities at its borders according to a separate methodology.
“As a result of three years of hard work, the Baltic transmission system operators have reached a remarkable agreement. The process has been supported by the Nord Pool Spot’s decision to open Latvian price area that is the final step in completion of the common Nordic-Baltic electricity market. Agreed rules of the capacity allocation with third countries enable to maximise energy flows on the Estonian-Latvian border for the local market participants,” says Estonian TSO Elering CEO Taavi Veskimägi.
“The common Baltic TSOs decision creates a background for transparent cross-border power trade and sets up common regulations for trade with non-EEZ countries”.: AST CEO Varis Boks.
“Over the past nine months, Estonian electricity imports into Lithuania have clearly increased. Upon turning over all possible capacities to trade in the Baltic market, we will be able to import more Estonian and Finnish electricity. Looking at the near future, all three Baltic countries will be able to take advantage of the electricity interconnections between Estonia and Finland more efficiently," says Lithuanian electricity transmission system operator Litgrid CEO Virgilijus Poderys.
The Nordic - Baltic power market operator Nord Pool Spot will allocate capacities to electricity market participants according to a common methodology agreed upon by the Baltic TSOs and it will be implemented together with Nord Pool Spot price area opening in Latvia – on June 3, 2013. After June 3, the allocation of the capacities will be managed by Nord Pool Spot using on the Baltic borders the implicit auction method and on the third countries border the capacity optimization method.
The cross-border capacity is the ability to transmit a certain amount of electricity between two countries via high voltage power transmission lines. The higher the capacity, the more electricity can be transmitted.