- Lithuania becomes a part of the Nordic power exchange
On 18 June 2012, Europe`s leading Nordic power exchange Nord Pool Spot has launched its bidding area in Lithuania. The Law on electricity that came into force last February and the agreement with Nord Pool Spot concluded in March were the preconditions enabling the establishment of Lithuanian bidding area.
“Becoming a part of the Nord Pool Spot is one of the objectives of National Energy Independence Strategy. Nord Pool Spot Lithuania bidding area will enable further integration of common European Electricity market. Launching the Nordic power exchange in Lithuania is yet another proof of energy projects‘ moving forward”, states Prime Minister Andrius Kubilius.
“Price at the electricity power exchange depends on the price and volume offered by the trading participants. A major part of the electricity consumed in Lithuania currently is imported from Russia. Considerable price variations once again indicate the necessity of competitive local power generation“, states Minister of Energy Arvydas Sekmokas.
“Lithuania, now having an access to this huge market, also faces new possibilities. Common electricity market means equal rules for all participants, and equal grounds for competition, which lead to transparent electricity price”, says Virgilijus Poderys, CEO of electricity transmission system operator Litgrid.
Commenting on the launch, Mikael Lundin, CEO at Nord Pool Spot, said: “We are pleased to announce the successful launch of the Lithuanian bidding area and anticipate a very positive future integration of the Lithuania market to the Nordic power market. The long term goal is to create a Baltic market with reliable prices integrated to the Nordic market through Nord Pool Spot.”
The launch of the Nord Pool Spot bidding area in Lithuania is a part of the Baltic Energy Market Interconnection Plan (BEMIP) initiated by the European Commission. A common Nordic energy market is one of the key objectives of Lithuania’s energy strategy and the BEMIP. A common electricity market will secure a transparent wholesale energy price, fair trade, as well as the possibility to purchase cheaper energy from other countries, and equal trade conditions for all market participants.