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Benefit from interconnections NordBalt and LitPol Link could reach LTL 180 million per year

Benefit from interconnections NordBalt and LitPol Link could reach LTL 180 million per year

Lithuania imports almost two thirds of all its consumed electricity, therefore, possibilities for importing it for a competitive price from sources, which produce vast amounts of electricity, are significant for the whole national economy.
“If the interconnections with Sweden and Poland were operating now, the current prices in the Nord Pool Spot Lithuanian bidding area would decrease by 1.8 ct/kWh, and the annual benefit would reach LTL 180 million,” claims Daivis Virbickas, chairman of the Board and CEO of the Lithuanian electricity transmission system operator Litgrid.
The only interconnection currently connecting the Baltic States and Finland is Estlink. The currently implemented international projects of interconnections NordBalt with Sweden and LitPol Link with Poland will connect the electricity infrastructure with the neighbouring states of Western and Northern Europe.  
The first to gain benefit are the major electricity consumers, i.e. companies operating in the industry and services sector and using about 70% of all the electricity consumed in the country. By purchasing electricity at a big power exchange, they, most probably, would decrease their electricity resources costs.
“With the launch of the operation of these interconnections at the end of 2015, Lithuania will become the power system best connected in the whole region. Technical possibilities for importing electricity to Lithuania will increase more than twofold, and by over 60% – in the Baltic States,” said Daivis Virbickas.
The September review of the electricity market announced by the electricity transmission system operator claims that with the electricity transmission capacity having decreased, the September electricity exchange price grew by 20% on the average. The interconnections with Poland and Sweden are most likely to decrease the fluctuations of wholesale electricity prices in Lithuania.
Mr. Virbickas noted that the calculations have been performed by applying the market modelling mechanism, which is based on the current gas prices in European states and the current electricity capacities in the Baltic Sea Region. Future electricity prices in the region will depend on the prices of carbon dioxide emission allowances, integration of renewable resources and other factors influencing the electricity market of the region.
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