Lithuania to propose to Latvia, Estonia to build new power plant

VILNIUS - Lithuania will propose to Latvia and Estonia to build a new electric power plant together to ensure flexible electricity generation and energy security, Lithuanian Energy Minister Zygimantas Vaiciunas said on Thursday.

The minister did not elaborate on the potential location or the technology of the project.

"Ideally, if we reach such an agreement with Latvia and Estonia, it could be a new power plant. With regional projects, we have a number of challenges in talking to regional partners. But if such a decision is taken, of course, such flexible generation is usually gas-fired generation, yet for the time being we are still in the initiation phase of this issue," Vaiciunas told the Ziniu Radijas news radio.

"I would not be able to elaborate on the technology or the location aspects for the time being, because we need to hear the opinion of Latvia and Estonia first," the minister said.

The new Lithuanian government's program envisages a discussion with other Baltic countries on a possible joint capacity auction for investors in modern and agile power plants that would produce electricity when there is no wind or sun for longer periods of time.

"That is why we will propose this option on a more regional scale, because we are in the common electricity market with Latvia and Estonia, and it would be rational to take such decisions at a regional level," the minister added.

Previously, the three Baltic countries have failed to agree on the construction of a joint liquefied natural gas terminal, they have disagreed on the location of the starting point of a submarine electricity cable to Sweden, they have long disagreed on a common gas market, and the Rail Baltic European-gauge rail project has been a constant source of disagreement.