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Litgrid invites to allocate and use capacities more effectively

Litgrid invites to allocate and use capacities more effectively

Lithuanian transmission system operator Litgrid proposes improvements to the present methodology for setting the transmission capacities, the purpose of which is to increase the effectiveness of determination of the capacities and allocation of electricity flows between the Baltic States and third countries.
The improved methodology should apply to the power transmission lines interconnecting the Baltic States’ electricity systems and the connections with the neighbouring energy systems. The employment of this methodology would enable a competitive supply of energy to Lithuania from both northern and eastern power systems, without discrimination against any participant in the electricity market.
“Import of electricity is of utmost importance when capacities of competitive domestic generation are insufficient. The aim of the methodology that we propose is to create opportunities, until the new interconnections are put into operation, for supplying electricity to Lithuania from those countries with which we currently have transmission capacities”, says Daivis Virbickas, Chairman of the Board and CEO of Litgrid.
The need to improve the capacity setting methodology arose when wholesale prices increased at the Lithuanian and Latvian electricity exchanges in the summer and at the beginning of autumn, due to repairs at power plants and transmission lines and the resulting decrease in supply.
According to Daivis Virbickas, “Capacities of power transmission lines is a very important but by no means a decisive factor determining the market price for electricity. Supply of electricity is much more dependent on competitive generation and prices for electricity imported by independent suppliers. As a system operator responsible for the reliable power transmission, we see that the set capacities are not always used in full by market participants”.
Litgrid has sent its proposals for amendments to the capacity setting and allocation methodology to the Latvian and Estonian transmission system operators.
“Changing capacity on one cross-border section affects other cross-border capacities through which electricity is supplied to the Baltic States, therefore, any amendments  must be agreed in advance with our Latvian and Estonian colleagues as well as with the State Commission on Prices and Energy Control”, says Daivis Virbickas.
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