VILNIUS - Energijos Realizacijos Centras (ERC), subsidiary of Inter RAO JES, will supply electricity to Latvia under a contract signed with Latvian utility Latvenergo, reports news agency ELTA. According to ERC's business director Vidas Cebatariunas, "This is a practical step towards an actually functioning and free electricity market in the Baltic states."
"The contract with Latvenergo satisfies the main aim of the agreement among the governments of the Baltic states, that is, to create a single market for electricity which is based on the Scandinavian principle of Nord Pool," he says.
Cebatariunas points out that "The contract foresees hourly trade in electricity. However, the possibility of trading electricity supplies on a weekly, monthly or yearly arrangement is also being discussed. As powerful grids connect the countries, the possibility of direct supply of up to 800 MW of electricity will also be included."
ERC's contracts with Russian and Belarusian energy suppliers allow for delivery of up to 7 TWh of electricity to the Baltic states in 2010.