The transmission system operators (TSOs) of the Baltic states have submitted to the countries' competition regulators a new joint methodology that will be used to calculate the transmission capacity available for trading electricity with Russia after the launch of Astravyets nuclear power plant in Belarus.
Elering management board Taavi Veskimägi said: "This is an important milestone on the road to completely ending import of electricity from third countries starting in late 2025, when we join the continental European synchronous grid. The methodology, along with the network fee to be established, could cut by one-half the trading of power from Russia, including Kaliningrad Oblast.
"For Estonia, it is important not only to end the buying of electricity from Belarus after the launch of Astravyets, but to establish a network fee for electricity entering the Baltic states. The goal is to gradually, leading up to the end of 2025, reduce unfair competition from Russia so that Estonian power producers could make new decisions on investing into generating capacity, without distortion of the EU electricity market stemming from Russia."
After the launch of the nuclear power plant, electricity from mainland Russia will enter the Latvian bidding area via the Russian-Latvian border. The transmission capacity provided for the Russian-Latvian border is approximately half of the transmission capacity currently allocated to the Belarusian-Lithuanian border for import of electricity from third countries.
TSOs will continue work on the details of the implementation of the network usage fee. The fee will start applying by next spring to electricity imported from third countries to Latvia and Lithuania.
The introduction of the network fee along with the halved transmission capacity will reduce import from third countries by about one-half, thus decreasing any unfair competitive advantage importers enjoy over producers operating in the European Union.
The new nuclear power plant in Belarus may feed the first quantity of electricity to the grid this autumn. The agreement between the Baltic TSOs rules out electricity generated either at Astravyets or in Belarus in general reaching the Baltic states' power market.
Editor: Helen Wright