Energy, EU – Baltic States, Gas, Legislation, Lithuania, Nuclear power plant

Jaroslav Neverovich and Dalia Grybauskaite. Vilnius, 9.06.2014. Photo: lrp.lt

Visaginas NPP construction was discussed on Monday in the meeting between the minister of energy and President Dalia Grybauskaite. Afterwards the minister reviewed the progress on the project.

"We see considerable progress: a good practical format was established with the neighbouring Latvia and Estonia, as well as efficient cooperation with Hitachi, deputy minister is visiting Tokyo as wee speak and the issue is being discussed. We believe we are ready for the next step to finally assess investment related to capital and possibilities to cut costs," said Neverovich.

According to the minister, before deciding on construction of the new nuclear power plant, a technical question has to be answered on how Visaginas NPP would be integrated into the Baltic countries' energy system and how Lithuanian and European electricity systems would be synchronised.

"The progress is sufficiently good, we are in talks with ministries and companies of the neighbouring countries. I believe in the nearest future we will take new steps related to the project," the minister informed.

The meeting also touched the most important tasks in the area of energy in the next years: implementation of strategic projects and reorganisation of the heating sector. The Ministry of Energy was mostly criticised for the slow implementation of the National Heat Sector Development Programme. The Presidential Office is of the opinion that as the programme is stalling, possibilities to use the EU funds are declining and the public interest is not safeguarded.

"The president noted that energy independence is Lithuania's long-term strategic goal. Only transparent and competitive energy sector will enable the growth of the country's economy and ensure well-being of its citizens. Therefore, the launched strategic energy projects – the LNG Terminal, NordBalt and LitPol Link connections – must be completed on time. Gas link with Poland has to be developed and a link with Latvia has to be pursued. Lithuania must become the centre of energy flows where the Baltic states connect with continental Europe and the Nordic countries," Grybauskaite's position was relayed to the media by her Advisor Nerijus Rasburskis.

According to the president, Lithuania has to act even faster developing its domestic energy market and ensuring the public interest. The president believes that the problem has not yet been resolved in the heating sector. "The ministry must ensure that decisions made in the heating sector serve the people and not oligarchs. The National Heat Sector Programme must be confirmed as soon as possible," Grybauskaite stressed.

The head of state noted that in the context of the events in Ukraine, Lithuania has to become an example that the country's political and economic independence must not be sold for short-term gas price discount.

Responding to the president's position concerning strategic projects, Minister Neverovich highlighted that as the construction of the LNG Terminal and the electricity links is nearing completion, the ministry will undertake new tasks which will enable Lithuania to consolidate its positions in the energy market.

"No we enter the stage when construction is nearing completion (...), we have to start thinking about the future. Today we discussed how to strengthen Lithuania's position in the common market, how to utilise opportunities and lower the risks which undoubtedly emerge," commented Neverovich.