News & events

2012-03-26

World’s Largest Power Exchange Nord Pool Spot Launches Bidding Area in Lithuania

Lithuanian electricity transmission system operator Litgrid and Europe’s leading Nordic power exchange Nord Pool Spot signed an agreement in Vilnius today, according to which Nord Pool Spot bidding area will be launched in Lithuania as of 18 June.

“We have made a very important step in implementing the Baltic electricity markets interconnection plan: the Nord Pool Spot power exchange will start operating in Lithuania. We are on our way to the united and transparent Nordic electricity market and the common European market,” said Minister of Energy of the Republic of Lithuania Arvydas Sekmokas.

The introduction of the Nord Pool Spot bidding area in Lithuania is very important for the country on its way to become a part of the Nordic electricity market and join the entire Europe’s electricity market later. The new version of the Law on Electricity, which came into force in February, has created legal preconditions for the integration of Lithuania’s electricity market into the Nordic market, and later into the common European electricity market. Being a part of a large market would in the future ensure a wider choice for Lithuania in buying and selling electric energy.

“Nord Pool Spot is an exemplary European power trading system. We are glad to have a chance to be among its first full members. Experience and professionalism, which are characteristic for the Scandinavians, allowed us to prepare for the establishment of a bidding area in a very short time,” said Litgrid CEO Virgilijus Poderys.

Nord Pool Spot CEO Mikael Lundin welcomed the decision of the exchange to launch a new bidding area in Lithuania. “Nord Pool Spot is pleased to announce our plan to open Lithuania as a new bidding area. Since Lithuania’s electricity law was passed by the country’s parliament earlier this year, it is now possible for us as a power exchange to operate the Lithuanian market. Our long term goal remains to create a Baltic power market connected to the Nordic market through Nord Pool Spot,” said Mr Lundin.

In the letter of intent signed by Litgrid (Lithuania), Augstsprieguma Tikls (Latvia) and Elering (Estonia) in January 2012 the three Baltic electricity transmission system operators (TSOs) expressed their intention to participate in the equity capital and the management of Nord Pool Spot. Participation of the representative of Baltic TSOs in Nord Pool Spot management would ensure representation of interests of the Baltic States in making strategic decisions regarding the integration and development of the markets.

Nord Pool Spot is Europe’s leading Nordic power exchange, featuring 350 participants from 20 countries. The licence to the Nord Pool Spot was issued by the Norwegian Water Resources and Energy Directorate. The group’s annual turnover stood at 316 TWh in 2011.
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