Green Growth in the Baltic Tiger in Latvia, Lithuania and Estonia, the Energy Mix Continues to Be Characterized by High Dependencies on Oil Shale and Nuclear Energy

Total Page:16

File Type:pdf, Size:1020Kb

Green Growth in the Baltic Tiger in Latvia, Lithuania and Estonia, the Energy Mix Continues to Be Characterized by High Dependencies on Oil Shale and Nuclear Energy baltic states Green growth in al eci the Baltic Tiger In Latvia, Lithuania and Estonia, the energy mix continues to be characterized by high dependencies on oil shale and nuclear energy. The planned renewal of the power plant fleet offers ideal opportunities for the implementation of renewable energies. Experts believe that especially wind power and biomass have a large potential. Country Sp Country uring many years, the Baltic Tiger states have the end of 2008. But also for the utilization of bio­ been registering dynamic economic growth, mass energy, the Baltic states provide good condi­ Eesti Energia, the state-owned Dwhich has led the energy demand in Latvia, tions. More than 40 % of the surface in these coun­ Estonian electricity provider, is Lithuania and Estonia to drastically increase. At the tries is covered by forests. already active in the onshore same time, these countries are looking at massive wind sector. In the future the cuts in the energy supply in the next few years as the Estonia: Energy supply company is planning to build majority of the existing nuclear power plants are undergoing change offshore wind farms as well. scheduled to be shut down. 4 Energia, an Estonian Photo: Eesti Energia / Rain Dorbek operator of renewable energy plants, estimates that In the course of the next few years, Estonia is poised the Baltic states will be confronting a gap of 3 GW be­ to see a change among the energy providers. About tween production capacities and consumption until 75 % of the oil shale­fired power plants that togeth­ the year 2015. While the three Baltic Sea countries er cover 91 % of the national electricity consumption are already planning the construction of a new nucle­ have become outdated and are scheduled to be shut ar power station in collaboration with Poland, the down until the year 2013. In 2008, the price for do­ plant is not expected to be connected to the grid be­ mestic power supplies ranged at 8.1 €­ct/kWh. As fore 2018. This means that an enormous potential for recently as September, the Estonian government renewable energy sources will open up being able to passed the decision on an action scheme with the secure the energy supply with shorter lead times. Si­ aim of increasing the share of renewables in the to­ multaneously, the strengthened implementation of tal energy consumption by 25 % until 2020. In 2005, renewable energy systems could help to lower the the share of renewable energies had still ranged at dependencies on Russian gas supplier Gasprom. 18 %. At the same time, the EU directive envisages Presently, the connection of the Baltic island electri­ that electricity from renewable sources must account city market to the EU is furthered though an expansi­ for 5.1 % of the electricity consumption until 2010. on of the transmission lines. In order to promote the utilization of renewable Especially in the utilization of wind power, the re­ energy sources in the country, the government at the gion offers a large potential. The coastal regions of beginning of 2005 had introduced a feed­in tariff of the Baltic states reach average wind speeds of be­ 5.2 €­ct for every kWh produced from renewables in­ tween 5.5 and 6.5 m/s and the feed­in tariff in Latvia dependent of the energy form. However, the operator and Lithuania has brought about the installation of is obligated to announce the expected amount of elec­ wind turbines with a total capacity of 159 MW until tricity generated from the system one day in advance. 28 Sun & Wind Energy 11/2009 In May 2007, the feed­in tariff was raised to 7.4 €­ct/ Key figures for Estonia kWh. The incentive will be valid until 2010. With this, Area 45,228 km2 the electricity production as, for example, from wind plants is becoming more attractive for investors. How­ Capital tallinn ever, for providing the operators of PV systems with a profitable margin, the tariffs continue to be too low. Population 1.3 million (2009e) The maximum amount of energy promoted GDP per capita uS$ 21,000 (2009e) through the incentive has been capped at 200 GWh. Global radiation up to 1,170 kWh/(m2a) As an alternative, system operators can also decide oil shale: 91 % Sources of electrical natural gas: 7 % on a compensation equal to the market price for elec­ energy tricity and benefit from an additional bonus of others: 2 % 5.4 €­ct/kWh. In this option, the promotion has been Installed capacities: PV 100 kW (2008) limited to a maximum of 400 GWh per year. Experts Solar thermal 1,970 m2 (2008e) at 4 Energia believe that the 400 GWh mark will be Wind 78 MW (2008) crossed as early as by 2010 due to the boom of wind Source: National institutions power. According to 4 Energia, the cap of 400 GWh equals an installed capacity of 150 MW and a share Top 5 in the European context. The company that was of about 4 % of the electricity demand in Estonia. founded in 2003 owns six production facilities with a From 2010 on, as indicates the Chamber of Foreign total capacity of 500,000 tons for manufacturing pel­ Trade of the Baltic states, the size of the feed­in tar­ lets from sawdust. In the next five years, the compa­ iff will be subject to a differentiation into two class­ ny plans to expand its capacities by at least 25 %. es. While electricity generated from residues, turf Solar energy is not widely utilized in Estonia. and combined heat and power plants below 10 MW However, Crystalsol is an example of a company that is remunerated with 5.18 €­ct/kWh, electricity pro­ is currently strengthening its module production. duced from other regenerative sources up to a capac­ Founded in 2008 as a spin­off from Tallinn University ity of 100 MW can be sold at a price of 7.4 €­ct/kWh of Technology, Crystalsol today develops its PV mod­ to the state utility Eesti Energia. ules based on copper, zinc, tin and sulfo­selenide (CZTS). For the modules that are produced in a roll­to­ roll process, the company is aiming at production Offshore systems being planned costs below 0.50 €/W in the mid­term. Meanwhile, state­owned Estonian electricity provider Eesti Energia, the largest employer in the country with more than 8,000 employees, has also discovered the opportunities of renewable energies. Last year, the company launched the first preliminary examinations for the construction of an offshore wind park off the Estonian coast. In total, the company is currently de­ veloping offshore projects with a total capacity of up to 900 MW. OÜ Nelja Energia and OÜ Neugrund are other examples. Both companies are currently plan­ ning offshore wind parks. OÜ Nelja Energia is plan­ ning the Hiiumaa offshore wind park that will have a capacity of between 600 and 1,000 MW. Neugrund offshore wind park that gets developed by OÜ Neugrund will have an expected capacity of between 100 and 200 MW on completion. In 2008, the onshore sector had been home to wind turbines with a capaci­ ty of about 78 MW. More onshore wind projects with a total capacity of more than 500 MW are currently in different development stages. Besides wind energy, biomass is currently the most important energy source in the country when it comes to the generation of electricity from renewable energies. Estonia’s key energy form still remains to be wood in form of sawdust. However, in turn, the uti­ lization of organic residues such as straw has not be­ come an established method. Presently, the market is mainly characterized by small and mid­sized com­ panies. According to company information, AS Graanul Invest based in Tallinn is the largest pellet until 2020, the Estonian government wants to raise the contribution of renewables manufacturer in the Baltic states and also among the in the total energy consumption up to 25 %. Photo: Reitgasse /aboutpixel.de Sun & Wind Energy 11/2009 29 country special bbalticaltic states the latvian riverscape in the neighbourhood of turaida: more Lithuania: danger of Key energy source biomass than 40 % of the surface in the a supply gap with more potential Baltic states is covered by forests – excellent conditions for the Presently, the nuclear power station in the neighbour­ According to the EU climate protection targets, the utilization of biomass. Photo: Pixelio hood of Ignalina covers almost four­fifth of the elec­ share of renewable energy must range at 23 % in the tricity demand in Lithuania. In total about 90 % of the future. In order to meet the targets, the Ministry of country’s primary energy demand is still imported to­ Economy in Vilnius is assessing to which extent the day. However, the power plant is scheduled to be shut power grid allows for further wind parks. According down at the end of 2009. The supply gap will be filled to 4 Energia, the data that has been collected so far with electricity from Belarus. Experts believe that, as suggests that the public grid in Lithuania would al­ a consequence, the electricity price will rise. In 2008, low for a total wind capacity of between 400 and the price for domestic power supply in Lithuania had 500 MW without having to make further adjust­ still ranged at 8.6 €­ct/kWh. Currently, the share of re­ ments. Key renewable energy source in Lithuania is newables in the energy mix arrives at about 11 %, the biomass. Today, wood and wood residues are al­ share in the country’s electricity production is below ready used for the heating supply.
Recommended publications
  • Estonia – the 'Baltic Tiger'
    Markets & Regions ESTONIA | OVERVIEW Estonia – the ‘baltic tiger’ LOCATED AT THE TOP OF EUROPE AND BORDERING RUSSIA, ESTONIA IS A SMALL COUNTRY WITH BIG AMBITIONS. THE MARINE INDUSTRY IS CURRENTLY SHOWING THE LARGEST GROWTH WITHIN A HIGH-INCOME ECONOMY WORDS: JAKE KAVANAGH government-issued digital identity that allows entrepreneurs around the world to set up and run a location-independent business’. So far, 15,000 individuals have registered under this scheme. Estonian citizens enjoy a high level of civil liberty and press freedom, with very few economic restraints. The marine industry has played a key role in the country’s success, with two-thirds of production in the workboat sector and the remaining third in leisure. Around 80% of all marine products are exported, and Estonia is also building its first custom superyacht at the inland yard of Ridas Yachts. IBI was given an ‘overview’ tour of 11 leisure yards and businesses out of a total of around 200 marine enterprises during a visit in June 2017, and saw for ourselves just how advanced the marine industry has Many former factories have been re- become. The quality of manufacturing easily equals tasked for boatbuilding, with rental costs rival EU countries, and is aided by the full use of around one-third of those in Western cities computer-aided design and a high concentration of modern 5-axis CNC machines. stonia may only be a country of just 1.3 million “We have a very high standard of education,” people in a footprint slightly larger than explains Anni Hartikainen of the Small Craft E Denmark, but the population is outward Competence Centre, a campus of Tallinn University.
    [Show full text]
  • EUROPEAN COMMISSION Brussels, 6.12.2017 C(2017) 8456 Final
    EUROPEAN COMMISSION Brussels, 6.12.2017 C(2017) 8456 final PUBLIC VERSION This document is made available for information purposes only. Subject: State Aid SA.47354 (2017/NN) – Estonia Amendments to Estonian RES and CHP support scheme Sir, 1. PROCEDURE (1) On 19 January 2017, Estonia pre-notified amendments to their support schemes for renewable energy sources (RES) and highly efficient combined heat and power (CHP) plants. Those support schemes were approved by the Commission on 28 October 2014 by Commission decision SA.360231 (hereinafter the “2014 Decision”). (2) Following pre-notification contacts, Estonia formally notified the amended schemes to the Commission on 10 November 2017. (3) On the same day, 10 November 2017, the Estonian authorities also provided a language waiver and agreed that the decision will be adopted and notified in English as authentic language. 1 JOCE C/44/2015, SA.36023 – Estonia - Support scheme for electricity produced from renewable sources and efficient co-generation, available here: http://ec.europa.eu/competition/state_aid/cases/254765/254765_1614362_64_2.pdf Sven MIKSER Välisminister Islandi väljak 1 15049 Tallinn Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË - Tel. +32 22991111 2. DETAILED DESCRIPTION OF THE MEASURE/AID: 2.1. Description of the proposed amendments (4) On 28 October 2014, the Commission adopted the 2014 Decision raising no objections to the Estonian schemes supporting the production of electricity from RES and highly efficient CHP. (5) In particular, the 2014 Decision concerned amendments to an existing scheme in Estonia, described at section 2.3 of the 2014 Decision (“existing scheme”). Those amendments concerned on the one hand changes to the existing aid scheme for existing RES and CHP producers (amendments described in sections 2.4.1 and 2.4.2 of the 2014 Decision), and on the other hand the introduction of a new support regime (“new scheme”) for new RES and CHP producers (amendments described in section 2.4.3 of the 2014 Decision).
    [Show full text]
  • Latvian and Estonian Austerity Models by Martins Vargulis "Success Stories" Differ: Latvian and Estonian Austerity Models
    "Success Stories" Differ: Latvian and Estonian Austerity Models by Martins Vargulis "Success Stories" Differ: Latvian and Estonian Austerity Models Author: Mārtiņš Vargulis, Master's degree student of Riga Stradins University, Faculty of European Studies The report in this publication does not represent official position of the Friedrich-Ebert-Stiftung on any of the issues reflected in the text. The author is responsible for the content and information in the report. Electronic version available www.fes-baltic.lv and www.liia.lv October 2012 A working paper “Success Stories” Differ: Latvian and Estonian Austerity Models Introduction perspective of foreign investors the The Baltic States experienced a troubled Estonian approach has also been evaluated transition period from the communist as successful and quite attractive for 2 planned economy to an open market liberal investing in the country. Although economy through the 1990s, and success- economic indicators from both countries fully acceded to the common market of the over the last two years have significantly European Union (EU) in May 2004. The improved, the approach used by the Latvian aftermath of EU accession has demonstra- government in many ways differs from ted economic developments worthy of Estonian policies. both criticism and acclaim. The trajectory of Therefore, among other questions raised in economic developments have taken the this article, there is an analysis of Latvian and countries from being called the ‘Baltic Estonian economic development up to the Economic Tigers’ to becoming fastest falling global financial crisis in 2008, a look at the economies in the world, and then again to countries’ experiences, an analysis of the being the fastest growing economies in the economic challenges during the recession, EU, within little more than seven years.
    [Show full text]
  • Registration Document
    Registration Document Nelja Energia AS A public limited liability company organized under the laws of the Republic of Estonia Business Registration number 11183009 Listing on Oslo Børs Manager: 18 November 2015 This Registration Document does not constitute an offer to buy, subscribe or sell the securities described herein. This Registration Document combined with the relevant Securities Document and SUMMARY serves as a listing Prospectus as required by applicable laws and no securities are being offered or sold pursuant to this Prospectus. IMPORTANT NOTICE This Registration Document (the “Registration Document”) has been prepared by Nelja Energia AS (“Nelja Energia” or “the Company”) for use in connection with the listing of Company’s bonds on the Oslo Børs (the “Listing”). The Registration Document combined with the relevant Securities Note and SUMMARY constitutes a Prospectus (the “Prospectus”). For the definitions of terms used throughout this Registration Document, see Section 10 “Definitions and Glossary”. This Registration Document has been prepared to comply with chapter 7 of the Norwegian Securities Trading Act of 29 June 2007 No. 75 (Nw: Verdipapirhandelloven) (“Norwegian Securities Trading Act”) and related secondary legislation including the Prospectus Directive (EC Commission Regulation EC/809/2004). The Financial Supervisory Authority of Norway (Nw: Finanstilsynet) (“NFSA”) has reviewed and approved this Registration Document in accordance with Section 7-7 and 7-8 of the Norwegian Securities Trading Act per 18 November 2015. The Norwegian FSA has not verified or approved the accuracy or completeness of the information provided in this Prospectus. The NFSAs control and approval solely relates to the issuers descriptions according to a pre-defined list of requirements.
    [Show full text]
  • Migration and the New Austeriat: the Baltic Model and the Socioeconomic Costs of Neoliberal Austerity
    Migration and the new austeriat: the Baltic model and the socioeconomic costs of neoliberal austerity Charles Woolfson (Linköping University, Sweden) Jeffrey Sommers (University of Wisconsin-Milwaukee) Arunas Juska (East Carolina University) W.I.R.E. Workshop on Immigration, Race, and Ethnicity Ash Center for Democratic Governance and Innovation at the Harvard Kennedy School 24 February 2015 Abstract The Great Economic Recession was experienced with particular severity in the peripheral newer European Union member states. Baltic governments in particular introduced programmes of harsh austerity known as ‘internal devaluation’. The paper argues that austerity measures have accelerated the fragmentation of the labour market into a differentially advantaged primary (largely public) sector, and an increasingly ‘informalized’ secondary (largely low-skill manufacturing and services) sector. It is suggested that the production of a segmented labour market has acted as a major stimulus towards creating, in both Latvia and Lithuania, among the highest levels of emigration in the European Union, especially during the years of the crisis from 2008 onwards. In the absence of effective state policy to address a gathering socio-demographic crisis in which this migration is a key component, so-called ‘free movement’ of labour raises troubling questions for wider societal sustainability in the European Union’s neoliberal semi- periphery in an era of protracted austerity. Keywords: Austerity, crisis, migration, Lithuania, labour market segmentation, neoliberalism, informalisation, European periphery Introduction The onset of the global economic crisis has led to a dramatic increase of emigration from a number of East European countries that have become members of the European Union (EU) (Galgóczi, Leschke, and Watt 2012).
    [Show full text]
  • Lithuania Empowered Lives
    RENEWABLE ENERGY SNAPSHOT: Lithuania Empowered lives. Resilient nations. General Country Electricity Generating Information Capacity 2012 Population: 2,985,509 Surface Area: 65,300 km² 3,816 MW 7.5% Capital City: Vilnius Total Installed Capacity RE Share GDP (2012): $ 42.1 billion GDP Per Capita (2012): $ 14,097 287 MW Installed RE Capacity WB Ease of Doing Business: 17 Biomass Solar PV Wind Small Hydro Installed Renewable Electricity Capacity 2012 in MW 29 6.1 225 27 Technical Potential for Installed 1,400 60,000 2,200 70 Renewable Electricity Capacity in MW Sources : Gaigalis et al. (2013); EurObserv’Er (2013); WWEA (2013); EBRD (2009); ESHA (2013); EC (2013); EIA (2013); Hoogwijk and Graus (2008); Hoogwijk (2004); JRC (2011); and UNDP calculations. Key information about renewable energy in Lithuania In Lithuania the technical potential for renewable energy is huge, especially for biomass and wind. Renewable energy plants that were acquired after 24 May 2011 receive support through a combination of feed-in tariffs and a tender based auction system. Renewable wind, biomass, hydro and solar energy not exceeding in - stalled capacity of 10kW are eligible for the guaranteed tariff for 12 years. All other renewable energy plants exceeding this capacity have to compete through tenders in each region. Tenders take place quarterly and are organized by the National Control Commission for Prices and Energy, adjusting the maximum prices be - fore every tender. The lowest preferred tariff wins the tender (ResLegal, 2013). The feed-in tariff caused
    [Show full text]
  • Annual Report 2018
    Annual report 2018 We contribute to making the world a cleaner place 1 Large-scale energy production 35 Cash flows 94 Contents Network services 42 Investment 97 Development projects 46 Financing 100 Eesti Energia at a glance 3 We protect the environment 49 Outlook for 2019 104 80 years of innovative Eesti Energia 7 Our people 55 Chairman’s letter 11 We give back to society 59 Eesti Energia Highlights of 2018 15 Tax footprint 64 consolidated Operating environment 17 Corporate governance 67 financial Strategy 24 Risk management 79 statements 106 Customer services Financial results 27 83 Income statement 108 Statement of comprehensive income 109 Statement of financial position 110 Statement of cash flows 111 Renewable energy Statement of changes in equity 112 Notes to the financial statements 113 31 Revenue and EBITDA 84 Electricity 85 Independent auditor’s report 195 Distribution service 88 Profit allocation proposal 203 Shale oil 90 Glossary 205 Other products and services 92 Investor information 206 Eesti Energia 106 million euros: at a glance NET PROFIT for 2018 2.5 billion euros: INVESTMENTS 4 in the last BUSINESS LINES: 10 years customer services, renewable energy, large-scale energy production, network services 875 Established million euros: REVENUE in 1939 for 2018 5,763 6 employees* HOME MARKETS: Estonia, Latvia, Lithuania, Poland, Finland, Sweden 3 100% owner: REPUBLIC OF ESTONIA * number of employees at 31 December 2018. 8 5 6 7 2 3 9 1 4 4 BUSINESS LINES LARGE-SCALE ENERGY PRODUCTION: 1. Oil shale mines I 2. Thermal power plants I 3. Oil plants NETWORK SERVICES: 8.
    [Show full text]
  • Baltic Rim Economies – a List of Writers
    Baltic Rim Economies – a list of writers The following expert articles have been published in the previous reviews: Review Author(s) Position Title of article 1/2021 Krista Mikkonen Minister of the Environment and Climate State of the Baltic Sea is a Change, priority to the Finnish Ministry of the Environment, government Finland 1/2021 Minna Arve Mayor, Sustainability as the policy City of Turku, framework Finland 1/2021 Brita Bohman Senior Lecturer in Environmental Law, Updating the Baltic Sea Action Department of Law, Stockholm University, Plan Sweden 1/2021 Anna Törnroos Assistant Professor (tenure track), The Decade for oceans and Faculty of Science and Engineering, Åbo humanity Akademi University, Finland 1/2021 Mati Kahru Ph.D., Researcher, The changing Baltic Sea Scripps Institution of Oceanography, University of California, San Diego, USA 1/2021 Karoliina A. Koho Dr., Project Officer, Towards a “green” future of the BONUS Secretariat (EEIG), Baltic Sea Helsinki, Finland 1/2021 Maciej Zalewski European Regional Centre For Ecohydrology Green Deal – Ecohydrological PAS, nature-based solutions for UNESCO Chair on Ecohydrology and improvement of Baltic ecological Applied Ecology, status Łódź, Poland 1/2021 Aija Caune Chairperson, Hope, stability and protection Coalition Clean Baltic Mikhail Durkin Executive Secretary, Coalition Clean Baltic Nils Höglund Fisheries Policy Officer, Coalition Clean Baltic 1 1/2021 Hannu Klemola Areal Manager, Vulnerable sea needs voluntary Finnish Association for Nature Conservation work to support common
    [Show full text]
  • Unmasking Austerity: the 'Great Recession' in the Baltic States, The
    Unmasking Austerity: The ‘great recession’ in the Baltic states, the myth of ‘successful’ austerity and its wider lessons Charles Woolfson REMESO Institute for Research on Migration, Ethnicity and Society Linköping University Sweden [email protected] Australian Workplace Innovation and Social Research Centre (WISeR) and the Don Dunstan Foundation, University of Adelaide. 24 June 2014 1 The Baltic states The Baltics: Between Russia and Nordics The late 1980s: the end of (evil) empire ‘The singing revolution’ 2 million people form a human chain of ‘solidarity’ spanning over 600 kilometres (370 miles) across the three Baltic states. 23 August 1989. Unprecedented unity of Baltic nations Small countries/ big myths James K. Galbraith Foreword to The Contradictions of Austerity “It is the fate of small countries to serve as pilot projects, as battlegrounds, and as the point-of- origin for myths. In the wake of the great financial crisis the three Baltic republics of Latvia, Lithuania and Estonia have played these roles.” Their experience, which does include a return to economic growth and no public debt crisis, has become a world-model for global bankers, international financial bureaucrats and some economists. The narrative of ‘successful’ Baltic model of austerity through ‘internal devaluation’ • After a period of rapid economic growth in the mid- 2000s (the highest in the European Union) • Economic downturn followed (again the most severe) created mainly by a housing and consumption bubble • Imposition of tough austerity (internal devaluation),
    [Show full text]
  • Representations of Eastern Europe in NATO and EU Expansion Jason N
    Florida State University Libraries Electronic Theses, Treatises and Dissertations The Graduate School 2003 European Re-Union: Representations of Eastern Europe in NATO and EU Expansion Jason N. Dittmer Follow this and additional works at the FSU Digital Library. For more information, please contact [email protected] THE FLORIDA STATE UNIVERSITY COLLEGE OF SOCIAL SCIENCES EUROPEAN RE-UNION: REPRESENTATIONS OF EASTERN EUROPE IN NATO AND EU EXPANSION By JASON N. DITTMER A Dissertation submitted to the Department of Geography In partial fulfillment of the requirements for the degree of Doctor of Philosophy Degree Awarded: Spring Semester, 2003 The members of the Committee approve the dissertation of Jason N. Dittmer defended on March 25, 2003 ______________________________ Patrick O’Sullivan Professor Directing Dissertation Jonathan Grant Outside Committee Member ______________________________ Jonathan Leib Committee Member ______________________________ Jan Kodras Committee Member Approved: _____________________________ Barney Warf, Chair, Department of Geography The Office of Graduate Studies has verified and approved the above committee members. ii This dissertation is dedicated to my mother, who always made her children’s education a priority and gave up many of her own personal satisfactions to make sure that we were in the best schools with the best teachers. Thanks Mom… This dissertation is also dedicated to Karl Fiebelkorn, who would be mortified to know that something so academic as this dissertation was dedicated to him. But think of it this way Karl – this is just to tide you over until I can dedicate to you my magnum opus: “I See How It Is”: Reflections on Brotherhood. You are missed, Karl. iii ACKNOWLEDGEMENTS This dissertation would not have been possible without the assistance of a great many of my colleagues and friends, who have all influenced my thoughts on these matters (and many others).
    [Show full text]
  • Baltic States and Indiana
    Baltic States and Indiana significant amount of unrealized economic potential A in today’s global economy lies in Eastern Europe. This article focuses on Lithuania and is the first in a multi-part series to explore the economic relationship Sweden Finland of the three Baltic States Norway (see “Rapid Change in Estonia Russia the Baltics” below) with Latvia Denmark Lithuania the United States, and (though admittedly from Belarus Indiana in particular. Germany Poland a relatively small base), The Republic of Ukraine according to preliminary Lithuania is the largest Czech Republic Eurostat data.1 This growth of the three Baltic States in outpaced all other EU member terms of population, territory and states, followed by Slovakia (6.6 economy. With 25,212 square miles of percent), Poland (5.6 percent) and land, it is a little smaller than Indiana, Sweden (5 percent). For comparison, but larger than Belgium, Denmark, the declare independence. After major the EU averaged over-the-year GDP Netherlands and West Virginia. economic restructuring, Lithuania was growth of 2.8 percent and the United A little less than 3.6 million people admitted to NATO in the spring of 2004 States came in at 3.6 percent for the live in Lithuania, which is located and a few months later to the European same time period. between Latvia, Belarus, and Poland, Union (EU). More than 80 percent of Lithuanian just West of Russia. Lithuanians make enterprises have been privatized and up 83 percent of the population, with Economy the economic climate is well-suited large groups of Polish and Russians, in Between the second quarter of 2006 for foreign direct investment (FDI).
    [Show full text]
  • Market Advisory Report by Wood Mackenzie
    IPO Support – Market Advisory Final Report August 2020 Trusted Power and Renewables Intelligence woodmac.com woodmac.com Executive Summary (1/2) Lithuania • The largest economy in the Baltic region is expected to see GDP grow at a CAGR of 2% from 2020 to 2040. This growth is largely driven by the manufacturing and industrial sectors, however, there is an expected progression towards science and pharmaceuticals in the future • Despite near term uncertainty as a result of the COVID-19 impact, electricity demand is expected to grow over the forecast period at a CAGR of 1% topping at 15TWh in 2040 compared to 12TWh in 2020. This demand is served mostly through thermal generation plants and hydro with some amounts of renewable energy, which makes up ~1.9GW of installed capacity • With the decommissioning of the Ignalina nuclear power plant in 2009, Lithuania went on to become a net importer of power depending heavily on Russia and Belarus. Since then major efforts have been made to improve and expand interconnections with neighboring countries Poland and Sweden to reduce dependency on the Russian and Belarusian imports • Decisions have been put in place to ban imports from Belarus surrounding the Astravets Nuclear facility, which Lithuania strongly opposes. This has also led to Latvia voicing concerns as the agreement between the three Baltic countries allows for flows only through Lithuanian connections • Key policies and regulations are being put in place to make a stronger push for growth in Renewable Energy Sources (RES). Lithuania has achieved an adoption of RES at a rate that is faster than the EU average.
    [Show full text]