Energy, EU – Baltic States, Latvia

Andris Piebalgs.

Oil prices have decreased from USD 150 to USD 50 per barrel, although this price may seem high, compared to the situation five years ago when one barrel of oil cost USD 20-30, said LETA Piebalgs.

Investments in the oil and gas infrastructure have been decreasing, which means that oil and gas prices may return to triple digits again in the near future, and now is the right time for reconsidering the energy policy.

Piebalgs said that Russia's decision to halt gas supplies to Europe in 2009 proved once again how vulnerable the EU energy policy is. Although the EU in general tackled the problem successfully, several countries were hit hard. The question of energy security is very important, and it cannot be solved without the involvement of state and local governments, said Piebalgs.

Prime Minister Valdis Dombrovskis (New Era) said, addressing the conference, that Latvia would pay much attention to security of energy supplies and use of local and renewable energy sources in the coming years. One of the main priorities is increasing energy efficiency in homes, which will be co-financed by the European Union.

Before the conference, Dombrovskis had a meeting with Piebalgs to discuss the issues of energy security and connecting the Swedish and the Baltic electrical grids, as the premier's press secretary Liga Krapane informed LETA.

Dombrovskis confirmed that Latvia is interested in a faster implementation of the Swedish-Baltic energy link. However, Latvian electricity market has been partly deregulated in accordance with the EU requirements, which has not yet happened in Lithuania and Sweden