Latvia eyes Ukraine for energy supplies

  • 2008-07-03
  • Staff and wire reports
RIGA - Several of Latvia's top political and economic leaders visited Ukraine last week to put out feelers whether the Baltic state could tap into Ukraine's vast electricity market.

President Valdis Zatlers confirmed that Latvia was interested in diversifying energy supplies and that Ukraine is a potential supplier. In his words, "The present situation is that there is a market, but with a single choice," the president told journalists.

Economy Minister Kaspars Gerhards told the press after talks with Ukrainian officials that importing kilowatts from Ukraine was technically feasible since the there are two power lines with the necessary capacity in place.
Gerhards noted that power imports from Ukraine could be one possible solution after Lithuania shuts down its nuclear power plant in Ignalina in 2009. He said a Latvian-Ukrainian intergovernmental commission scheduled to meet in September would address the issue.

Meanwhile, Aigars Melko, a board member of Latvia's Latvenergo, told the Baltic News Service that Ukraine has enormous export potential in terms of energy and that Latvia was interested in tapping into this. First, however, the commercial and technical possibilities would have to be studied, he said.

As Melko explained, any plan would have to take into consideration technical possibilities since Latvenergo does not have a direct grid connection with Ukraine.  Any Ukrainian kilowatts would have to cross Belarus and Lithuania first, he pointed out.

Reliance on Belarus can be just as dangerous as dependence on Russia, as EU Energy Commissioner Andris Piebalgs recently pointed out (see story on Page 6). Lithuania's oil refinery, for instance, was cut off from Russia's oil pipeline due to an alleged accident in Belarus. Lithuanian officials asked several times to inspect the site but were refused by the Belarusian colleagues.

With 15 nuclear reactors, Ukraine is a major electricity producer. According to the World Nuclear Association, total electricity production in 2007 amounted to 195 billion kWh 's approximately 50 percent less than it was in 1990.  Ukraine exported some 9 billion kWh last year.

Latvenergo energy company generates power at its two thermal power plants in Riga and three hydropower plants on the River Daugava.

The Latvia-Ukrainian panel is also expected to talk about the development of the Odessa-Brody-Gdansk crude pipeline.