Lithuania plugs in to Nordic electricity market

VILNIUS - The Nordic power exchange Nord Pool Spot trade zone opened for business in Lithuania on June 18, reports ELTA. The treaty on operation was signed on March 26 between Lithuania’s transmission system operator Litgrid and Nord Pool Spot.
The trading currency in the Lithuanian bidding area will be the euro. The domestic currency, the litas, will be added as a trading currency at a later stage.

The common Nordic electricity market is one of the key goals of the Baltic Energy Market Interconnection Plan (BEMIP) and Lithuania’s energy strategy. The new version of the Law on Electricity of Lithuania, which entered into force this February, created the legal preconditions for the Lithuanian electricity market integration into the Nordic countries’ electricity exchange, and later, into a common European electricity exchange.
Nord Pool Spot is the leading Nordic electricity trading market, operating since 2002. The group’s output in 2011 was 316 terawatt hours.

Nord Pool Spot runs the leading power market in Europe and offers both day-ahead and intraday markets to its members. A total of 350 companies from 20 countries trade on the market.
“Becoming a part of the Nord Pool Spot is one of the objectives of National Energy Independence Strategy. Nord Pool Spot Lithuania’s bidding area will enable further integration of the common European Electricity market. Launching the Nordic power exchange in Lithuania is yet another proof of energy projects moving forward,” stated 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,” stated Minister of Energy Arvydas Sekmokas.
“Lithuania, now having access to this huge market, also faces new possibilities. A common electricity market means equal rules for all participants, and equal grounds for competition, which lead to transparent electricity prices,” said 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 into 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.