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Litgrid‘s results for 2017 Q1: sustainable growth and value for society
2017-06-14

Litgrid‘s results for 2017 Q1: sustainable growth and value for society

Strategic power links projects with Sweden and Poland implemented by Litgrid in 2015 not only contribute to enhancing business opportunities in the region, but have provided the national economy with benefits of EUR 31 million in 2016. This is mainly related to the 13% drop in the electricity price due to diversification of electricity import sources and to the significant revenues from congestion income.
 
‘Today it already seems natural to us that electricity market prices paid on the exchange by us and the Swedes are often equal or very similar, even though not so long ago, in 2015, they differed three or four times.  NordBalt and LitPol Link have achieved the main goal that had been set for these projects: to align the electricity price levels in the region’, says Daivis Virbickas, CEO of Litgrid.
 
In 2016, due to 13% price drop of the market price for electricity year-on-year, all power consumers saved approx. EUR 66 million in total. Congestion income arise from differences of prices in neighbouring markets. Revenues of this type earned by Litgrid in 2016 amount to EUR 8 million. This year a decreasing trend is observed as prices in the neighbouring markets are often the same, or the differences are slight.
 
In determining the benefits from the power links, account has also been taken of the lower market prices impact to electricity producers' income as well as the technological and operating costs of to the new infrastructure.
 
At the end of 2015, NordBalt and LitPol Link, two power links with Sweden and Poland, connected Lithuania with the electricity infrastructure and markets of the Nordic countries and Western Europe. Lithuania’s power system has since become the regional hub of power flows. 
 
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