Baltic States – CIS, Belarus, Energy, Energy Market, Lithuania, Russia

The new methodology for electricity trade with Russia has yet to be approved by the Lithuanian regulator.

"The first message is that we would have no commercial trade with Belarus. The second important aspect is that the Baltic countries' electricity trade with Russia could amount up to 4.2 terawatt hours per year, which is practically half the capacity based on earlier theoretical calculations," Vaiciunas told.

"I underline that the (latest) calculation is based on actual data, which basically means that this is the maximum capacity," the minister said.

"And if there were more local production in Lithuania or if certain interconnection control aspects were used in this process, the volume of trade could even decrease to 1.5 terawatt hours," he added.

If the new three-way methodology is not approved and Estonia and Latvia apply an earlier planned two-way methodology, actual capacity of electricity trade with Russia could reach up to 6.6 TWh, according to the minister.  

"That means that the methodology, which has been approved by all (three) transmission system operators and is currently awaiting regulatory approval, reduces the trade flow by a third," he noted. 

Litgrid said it has provided information about the trilateral methodology to market participants and the National Energy Regulatory Council (VERT).  

The methodology requires, among things, that electricity imports from Russia have "a proof of origin that the imported electricity is originated from non-Belarusian producers". 

The Baltic Council of Ministers has made a decision that calls for the Lithuanian, Latvian and Estonian power transmission system operators to agree on a preliminary system of guarantee of origin before the Astravyets plant starts operating, with a permanent system to be put in place by April 1, 2021.