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Energy Cooperation In The Baltic States

3015 words - 13 pages

Baltic Energy Forum for Students 2012

Cooperation of the Baltic companies to get along with regulations of the EU

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Prepared by Vytautas Magnus University students:
Povilas Brilius Žygintas Dovydėnas Karolina Mališauskaitė

Table of contents

Introduction ...view middle of the document...

Key aspects of the Baltic States’
energy companies
In this section an outlook will be performed unveiling and summarizing key aspects of Baltic States’ (Lithuania, Latvia and Estonia) energy companies. As many authors notice (Janeliūnas, 2008; Arengu, 2009), although three Baltic States underwent huge structural reforms in energy sector since the collapse of the Soviet Union ,the main structure of some energy sectors (e.g. electricity supply) changed insignificantly (SEITC, 2008). It must also noticed that although three countries are “energy islands” (Janeliunas, 2008), their energy sectors structures differ and it could create positive diversity (SEITC, 2008).
Estonia. According to Arengu (2009), the Estonian power sector is characterized by considerable concentration in power and gas, and is in the state of substantial development. Eesti Energia AS is the main electricity provider and distributor in Estonia. It controls power generation company Narva Elektrijaamad AS (AS Narva PP) which, in turn, operates the largest oil shale power plants in the world (SEITC, 2008). Oil shale plants adapted new technology in 2001 which significantly improved efficiency and reduced hazardous emissions (SEITC, 2008). Eesti Energia also controls OÜ Jaotusvõrk, the owner of 87% of electricity distribution networks. Electricity transmission grid is controlled by state since 2010.
Estonian Energy Ltd has in the past years been actively looking for new power generation possibilities in the country and in the wider Baltic Sea region. In line with the foreign expansion strategy, the company has also been working towards getting a stake in the construction of the new nuclear power plants and reactors in Visaginas, Lithuania and Olkiluoto, Finland. In addition, Estonian Energy has started looking for options of constructing an NPP of 400-800 MW in Estonia in the next 15 years (Arengu, 2009).
The largest gas company in Estonia is Estonian Gas, co-owned by several international gas companies. Estonian Gas owns EG Võrguteenus AS (EG Network Service Ltd), the owner of the gas transmission grid and the largest distribution network in Estonia. Similarly to the electrical power market, the number of gas distributors totals a high of 27, but the distribution market is actually very concentrated as EG Network Service holds 92% market share.
Latvia. SEITC (2008) states, that the specific feature of the Latvian energy sector is production of electricity from hydro energy. The main source of hydro energy – the river of Daugva – has been already used by three cascades of hydro plants. Among local resources, wood is used the most. The dominating company in the electricity generation and supply is Latvenergo, a state owned vertically integrated Joint Stock Company (JSC) that generates more than 90% of all electricity and ensures import of electricity, distribution and supply to consumers. Beside of it there exist around 180 small electricity producers and 15 certified...

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