Electricity markets in BalticStates Jank

ELECTRICITY MARKET IN THE BALTIC COUNTRIES : ELECTRICITY MARKET IN THE BALTIC COUNTRIES by prof. Vidmantas Jankauskas Chairman, National Control Commission for Prices and Energy Workshop Development of electricity markets and security of supply in the Baltic sea region Vilnius, 26 January 2006


Electricity market liberalisation - Latvia : Electricity market liberalisation - Latvia TSO legally separated in 2005, transmission license issued in 2004 Electricity Market Law passed in 2005 formally market is open for all commercial customers in practice – market does not work: no one eligible consumer has switched, vertically integrated monopoly Latvenergo owns all the grid and most of generation


Latvia: Latvenergo : Latvia: Latvenergo Latvenergo is state-owned, vertically integrated monopoly Latvenergo production share is 93% Latvenergo distribution share is 99%


Estonia : electricity market liberalisation : Estonia : electricity market liberalisation market opening 12% now, 35% in 2009 and full opening in 2013 oil shale generated electricity takes 90% of the market DSOs are obliged to buy from Narva PP and CHPs National Grid company was set up as an independent company in 2004 – legal unbundling one eligible consumer is supplied by a competitive supplier Narva Elektrivõrk which imports electricity from Ignalina NPP


Estonia: Eesti energia : Estonia: Eesti energia Eesti energia is 100% state-owned, vertically integrated monopoly Eesti energia owns more than 95% of power production Eesti energia has 90% of the distribution market


Electricity market liberalisation - Lithuania : Electricity market liberalisation - Lithuania market opening started in 2002, now all commercial consumers are eligible legally separate transmission, 2 distribution and several generation companies Ignalina NPP heavily dominates in the market (about 70% of the demand), plus CHPs, plus green electricity – free market is very small few switches


Market opening in Lithuania : Market opening in Lithuania


Electricity suppliers in Lithuania : Electricity suppliers in Lithuania


Electricity produced and sold in 2004 : Electricity produced and sold in 2004


Electricity market in the Baltics Source: National Reports, 2005 : Electricity market in the Baltics Source: National Reports, 2005


Structure of generating capacities, MW 2005 : Structure of generating capacities, MW 2005


Transfer capacities in normal conditions (DC Baltija) : Transfer capacities in normal conditions (DC Baltija)


Usage of cross-border capacities in Lithuania, January 2005Source: National Report 2005 : Usage of cross-border capacities in Lithuania, January 2005 Source: National Report 2005


Electricity prices for small commercial consumers (50 MWh/y) (EC 2005 Report) : Electricity prices for small commercial consumers (50 MWh/y) (EC 2005 Report)


Prices to final customers (€/MWh)(National Reports, 2005) : Prices to final customers (€/MWh) (National Reports, 2005)


Network charges, (€/MWh)(National Reports, 2005) : Network charges, (€/MWh) (National Reports, 2005)


Electricity generation prices in Europe(EC Report 2005) : Electricity generation prices in Europe (EC Report 2005)


Future vision: possible electricity trade in 2010(BCEM study, 2003) : Future vision: possible electricity trade in 2010 (BCEM study, 2003) LATVIA 2700 / 1500 MW 4.7 / 7.5 TWh RUSSIA BELARUS POLAND FINLAND ESTONIA 2 63 0 / 1695 MW 8.5 / 8.0 TWh LITHUANIA 5449 / 2.040 17.390 / 9.701 LITHUANIA 3700 / 2 40 0 MW 10.8 / 12.1 TWh SWEDEN 1000 MW Installed capacity / Max. system load Total production / Total consumption 1000 MW


Conclusions : Conclusions strong interconnections, good common generation mix (thermal, nuclear, hydro) are opportunities for a common Baltic electricity market political, legal and regulatory decisions to create a common market are already taken very important to agree among the 3 countries as for the Russia’s role in the Baltic market and finally commercialize all relations with this partner common electricity exchange is necessary exchange of information and coordination of investments in transmission is necessary


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