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Efficient use of electricity infrastructure to enable bigger imports of electricity from Northern Europe

The Lithuanian, Latvian and Estonian electricity transmission system operators have agreed on unified use of the Baltic electricity infrastructure, the top priority of which being the interests of consumers.
Today in Vilnius, the heads of Litgrid (Lithuania), Augstsprieguma Tikls (Latvia) and Elering (Estonia) 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 important for the successful integration of the Baltic electricity markets.
“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.
“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,” adds Estonian electricity transmission system operator Elering CEO Taavi Veskimägi.
“The common Baltic TSOs decision provides background for transparent cross-border power trade and rules for common treatment of trade with of non-EEZ countries,” says Latvian electricity transmission system operator AST CEO Varis Boks.
Previously, each transmission system operator used the separate or bilaterally agreed methodologies and principles for calculation and allocation of the cross-border capacities at its borders. New principles are agreed among all three TSOs and will be implemented together with Nord Pool Spot price area opening in Latvia – on 3rd of June. From this date 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.
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