1 ELECTRICITY REGIONAL INITIATIVE BALTIC REGIONAL ELECTRICITY MARKET Dace Bite Public Utilities Commission Latvia Creating a Single European Energy Market Tuesday, 30 th January 2007

2 Map of the BRELL Electrical Ring

3 MARKET OPENING Estonia Latvia Lithuania Market12%76%74% opening Eligibilityabove all electr. consumers 40 GW except households 100% market opening Regulated TPAYESYESYES

4 Electricity market data Final consumption - 20,1 Twh Installed capacity - 9,9 GWh Gross production Estonia10,25 TWh Latvia4,9 TWh Lithuania 14,78 TWh Energy flows also outside Baltic region and include BLR and RUS (BRELL ring) Import/Export (TWh) Estonia0,34/1,95 Latvia2,85/0,71 Lithuania1,06/4,03 NORDIC LINK (ESTI-FIN) – started at December 2006 LIT – Poland - agreement signed

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8 CROSS BORDER CAPACITIES Russia - Estonia1000 Estonia – Pskov (Russia)650 Estonia – Latvia Latvia – Pskov (Russia) Latvia - Lithuania2000 Lithuania – Kaliningrad (Russia)> 700 Lithuania - Belarus Belarus - Russia

9 CHALLENGES Common Energy policy in the Baltic region common interface for trade with Russia unified understanding of security of supply in the Baltic States, Impact of the closure of Ignalina in 2009 on energy flows and investment opportunities in the region

10 PRIORITIES The 1st priority topics: Co-operation between network operators (including cross border issues and availability of transmission capacity) Access to grid and balancing rules Availability and control of information The 2nd priority topic: Market development and harmonization of national legislation

11 ACTIONS Mini-fora (stakeholder group meetings): Tallinn, 21 st April, 2006 Riga, 3 rd July,2006 Vilnius, 23 rd November, 2006 Riga, 3 rd April, 2007 RCC and IG agreed to develop working papers: Balancing in the Baltics TSO’s opinion on the Baltic ITC mechanism Licensing procedure

12 THANK YOU FOR ATTENTION Web page of PUC :