Analytics, Baltic, Energy

Sandor Liive.

Formally Lithuania’s market is also open, but it is not effective. Estonia has temporarily opted for a closed market, but this situation will not last.

Liive stated that in the future perspective, the best option for the Baltic States’ electricity market is full integration with the Nordic market.

“Experts estimate that Finland’s Nordpool is one of the best market systems world-wide,” said Liive, adding that today there is no such transparent market system in the Baltic States.

He noted that the most optimal choice would be to define the Baltic Sea region as one single energy security area, to create optimum links, harmonise regulations and create a fully integrated market. Liive stated that as the market opens up, the price surge cannot be avoided.

Unfortunately, he noted, current developments are rather moving in the opposite direction, with each Baltic State attempting to solve their own problems. As they are preparing for the Ignalina nuclear power plant closing down on January 1, 2010, Latvia and Lithuania are building new gas-fuelled plants which will increase dependence on Russian gas.