april 10, 2013 stockholm eitvydas bajarŪnas
TRANSCRIPT
“ENERGY SECURITY IN LITHUANIA”
April 10, 2013
Stockholm
EITVYDAS BAJARŪNAS
Ambassador of Lithuania in Sweden
Energy – general situation
BEMIP – main projects
Lithuanian EU Presidency
• The Baltic Sea
region connected
but divided
• Dependency from
single external
supplier
• Main problem for
market integration –
lack of energy
infrastructure
Dependence – Challenge for Energy Security
Source: Lithuanian Ministry of Energy, 2011
Cost of energy resources for Lithuania ~ $ 3.5 bn (2011)
Current situation in Lithuania
Lithuania imports 80% of required energy
Lithuania imports 62% of electricity
Highest ranking in the EU. A country is considered
energetically insecure if it imports more than 15% from
one supplier…
Lithuania is 100% dependent on a single
source gas supplier
5
6
Dependence on Eastern Power System
RG Continental Europe
RG Nordic
UPS/IPS
RG Baltic
RG Ireland
RG UK
Source: European network of transmission system operators for electricity
(ENTSO-E), 2009.
EN
TS
O-E
EstLink 350 MW
7
7
Dependence on Single Gas Supplier
< 50 %
50-80 %
80-
100 %
Sources: BP Statistical Review of World Energy, June 2010
Europe’s energy portal, 2010
Gas prices for Lithuania (2012):
~ USD 500 per 1,000 cu. m
Gas Share in the National Energy Mix
< 10 %
10-20 %
20-30 %
> 30 %
Sources: BP Statistical Review of World Energy, June 2010
Europe’s energy portal, 2010
Eurostat, 2010
International Energy Agency, 2010
Pro-
duction
Consumptio
n
(+) Exp.
(-) Imp.
LT 4.7 10 -5.3
LV 5.7 7.5 -1.8
EE 11.3 8.2 3.1
∑ 21.7 25.7 -4
2011
(in TWh)
Dependence on Electricity Import
Import forecast (2020) – 10 TWh
New NPP capacity – 1350 MW
• DEPARTURE POINT Energy island = No energy market
• INSTRUMENT Regional dimension – Baltic Energy Market Interconnection Plan (BEMIP)
• RESULT Fully operational and integrated EU energy market
BEMIP - the main instrument to
guarantee regional energy security
Baltic interconnections and market
integration via BEMIP
1 2
3
4
Estlink-1 350 MW Exists
Estlink-2 650 MW 2014
NordBalt 700 MW 2015
LitPolLink 500 MW 2015
500 MW 2020
1
2
3
4
EE
PL
LT
LV
FI
SE
BY
RU
Integration into EU energy market –
strategic goal of Baltic States
Baltic Energy Market Interconnection
Plan (BEMIP):
Interconnections with Sweden,
Finland and Poland
Creation of common Baltic and
Nordic electricity market
Market integration will enable equal
and transparent trading rules and
effective competition
Interconnection with Sweden „NordBalt“
• NordBalt is a planned 700 MW submarine
power cable between Lithuania and Sweden
• NordBalt is expected to cost EUR 552 million,
of which EUR 175 million is provided by the
European Economy Recovery Plan
• NordBalt is targeted for completion by the end
of 2015
• A number of preparation works have already
been completed: a seabed survey for the NordBalt interconnection in
the Baltic Sea;
preparation of the technical specifications for cable
and converters;
preparation of territory planning documents;
contracts with the Swedish energy and automated
technologies company ABB for the production and
installation of a 300 kV HVDC cable and converter
stations for the NordBalt interconnection signed;
the Government of Lithuania granted permission to
lay the cable in the territory of Lithuania and territorial
sea.
Interconnection with Poland „LitPol Link“
Alongside with the “NordBalt” project Lithuania and
Poland are developing another strategic power
interconnection project – “LitPol Link” – which is
planned to be finished by the end of 2015.
This interconnection is playing a key role in
connecting the Baltic States with the European
energy markets and breaking energy isolation of the
Baltic States.
The successful development of this project also
includes participation of Swedish company ABB,
which was selected as a main contractor for the
installation of the high voltage direct current
back-to-back converter station with the 400 kV
switchyard in Alytus, Lithuania.
This is another example of how Sweden and its
companies contribute to the development of
strategic energy projects in Lithuania.
Visaginas NPP
The referendum on Visaginas NPP (14 October 2012) was of
advisory nature and the Parliament has tasked the
Government to evaluate its results.
Currently governmental working group of experts is preparing
an economically viable strategy for electricity supply in
Lithuania, which will evaluate available options for reliable
electricity generation, including also the issue of NPP project
development.
Positive decision regarding nuclear alternative (Visaginas
NPP) of electricity supply will mostly depend on strong
engagement of regional partners as well as strong
commitment of “Hitachi-GE”.
Synchronization with ENTSO-E
Baltic States expressed common will to become an integral
part of the European Continental Power Network.
The European Commission was mandated to negotiate the
future of BRELL agreement with Russia and Belarus, in the
view of the political objective of the Baltic States to fully
interconnect with the European grid.
The feasibility study on synchronous connection of the Baltic
States to the European networks will be presented later this
year (autumn 2013), but it is already clear that second power
link between Lithuania and Poland will be necessary to
connect the networks synchronously. In this regard we see
LitPol Link 2 project as a future strategic goal for the whole
region.
Projects in gas sector
LNG terminal
200 million EUR
LT-PL gas pipeline
250 million EUR (?) 16
Source: Lithuanian Ministry of Energy, 2011
Local LNG terminal in Lithuania
• Klaipėda LNG terminal project is planned as a
fast-track infrastructure development option
while implementing mandatory infrastructure
standard (N-1) requirement established under
Regulation (EU) No 994/2010 of the European
Parliament and of the Council of 20 October
2010. For this reason Klaipėda LNG terminal is
intended to be operational by December 3,
2014.
• This is of key importance to Lithuania, since
the current long term gas supply agreement of
AB Lietuvos dujos (current TSO) with OAO
Gazprom will expire in 2015.
Main objectives:
• LNG terminal is the fastest and the most cost-effective solution to ensure diversification of gas supply
and to eliminate Lithuania’s dependency on Russia, as the single gas supplier.
• LNG terminal will serve as a significant benefit towards establishing adequate base capacities for local
consumption demand (in case there will be the disruption of supply from Russia).
• Enhancement of energy security in Lithuania, contribution to the development of competitive national
and EU natural gas markets.
• An access to international gas markets is the precondition for effective response to Gazprom pricing
policy.
Main parameters of Klaipėda LNG terminal
TECHNOLOGY Floating Storage Regasification Unit
(FSRU)
LOCATION Southern part of Klaipeda seaport
FSRU SUPPLIER Hoegh LNG (Norway)
STORAGE
CAPACITY 170 000 m3 of LNG
LOADING
CAPACITY
9000 m3/h of LNG.
Ship-to-ship transfer through
flexible hoses
ANNUAL
CAPACITY* 3 bcm (up to 11 mcm per day)
BUSINESS MODEL FSRU lease with possibility to
purchase after 10 years
• Such capacities will be reached after enhancement of capacity of pipeline Klaipeda – Kiemenai.
Whithout this enhancement annual regasification capacity of Klaipėda LNG terminal would be 2 bcm.
Shale gas
The exploration of shale gas has been identified by
Lithuanian Parliament and Government as one of the
priorities in energy sector; it should be carried out
however in accordance to environmental regulations and
in close cooperation with local communities.
Decision regarding exploration of shale gas is in the
pipeline.
Some forecasts regarding potential of shale gas in
Lithuania: coverage of internal demand for 30-50 years
(till 30 billion USD).
Renewable energy development
Renewable energy – important part of the national
energy strategy
Current level ~20 percent
2020 target ~23 percent
Context of the Lithuanian EU
Presidency
First Lithuania‘s EU Presidency
The mandate of the current European Commission and the European Parliament comes to the end: increased legislative workload;
Elections in MS;
The agreement on MFF and its legislative package;
Europe emerging from the euro crisis and the implementation of related financial-economic initiatives;
Discussions about the future of the EU;
The start of the Lithuanian Presidency hopefully will be marked by the accession Croatia.
Presidency’s priorities
1. Financial Stability: restored confidence
2. Smart Growth and Jobs
3. Open and Safe Europe
National priorities during Presidency
Energy security - completion of the internal energy
market and strengthening the external EU energy policy;
Effective implementation of the EU strategy for the Baltic
Sea Region, including holding the fourth annual
Stakeholder Forum;
Bringing the countries of the Eastern Partnership closer
to the EU and hosting the Eastern Partnership Summit in
November 2013;
Effective management of the EU external borders.
Priorities in the field of energy
Lithuania, during its Presidency, will focus on EU
internal energy market issues and on the
strengthening of external EU energy policy
dimension. These are our national priorities set by the
Parliament.
On 4-5th of November, we are planning to have a high
level ministerial conference in Vilnius on the internal
energy market and on the first European list of PCIs
(projects of common interest).
Informal Energy Council is scheduled on 19-20th
September in Vilnius.
THANK YOU FOR
ATTENTION!