2012-08-28
Strategic projects by Litgrid to minimize negative foreign influence on the electricity sector
In the past few years, Lithuania's electricity import accounted for around 70% of the total consumption. The figure shows the country's major dependence on electricity imports. Last week, on 20 August, Russia shut down one of the electricity transmission lines important for the Baltic region, which decreased capacity for electricity import and forced to boost local production.
The same week, on 19 August, Latvia closed a power plant for maintenance and on 21 August the seventh unit of the Lithuanian power plant shut down due to an emergency. Other Lithuanian power plants increased their production to meet local demand.
As a result, the wholesale price of electricity in the Lithuanian bidding area of the Nord Pool Spot power exchange rose to 123 EUR/MWh.
This week the average production by local generators constituted around 55% of the country's total energy consumption, and lower power imports accounted for approximately 45% of the consumption. However, no serious consequences were caused for market participants or end-users, as the prices that are formed on power exchange reflect about a tenth of the whole electricity market. Within just a week, the wholesale price of electricity bounced back to the pre-rise level and is hovering at around 58 EUR/MWh today.
