ENERGY March 2013, No. 3 (15) UPDATE

PUBLISHED BY THE LITHUANIAN ELECTRICITY TRANSMISSION SYSTEM OPERATOR

STRATEGIC PROJECTS In this issue: and ABB signed a Litgrid Junior Professionals historical agreement on the Programme – construction of the LitPol Link perfect start for a career in power power interconnection facility engineering On 15 February 2013, the strategic LitPol Link power in- page 3 terconnection project between and reached a particularly important stage with the signing of an agreement on the design and construction of a direct current insert with a 400 kilovolts (kV) back-to-back converter station in Alytus. The agreement was signed between Litgrid, the Lithuanian electricity transmission system operator, and ABB, the global technology Litgrid and ABB have signed an agreement on outsourcing the direct company. Students prepare current insert with a 400 kV converter station in Alytus see page 2 electric energy TODAY AND TOMORROW plans for the next The plans of electricity network three decades development lie in the hands of page 7 competent specialists

Antanas Jankauskas, leading network development plans; he engineer of the Litgrid System has been working in the system Planning and Research Division development division of the then has been working in the energy Lietuvos Energija since 1994. sector for more than 40 years. Over the course of his career, The engineer, who specialises in Mr Jankauskas has witnessed Sector news electricity systems and networks, the creation of the electri- has spent more than half of city transmission network as well his working life, 24 years, in the as himself contributing to the page 8 Leading engineer of the Litgrid Energy Planning Institute where expansion of the network. System Planning and Research he has been involved in the pre- Division Antanas Jankauskas paration of electricity transmission see page 4

1 ENERGY UPDATE

STRATEGIC PROJECTS

– will allow Lithuania, Latvia and native and back to direct again. Estonia to import as well as export Simultaneously the voltage will electricity to and from Western Eu- also change from 400 kV to 330 kV rope”, said the Minister of Energy. and back. Thus, the electricity During the event, the CEO of systems of continental Europe, Litgrid emphasised the signifi- to which belongs Poland, and cance of the LitPol Link power in- the IPS/UPS system, to which be- terconnection. “The Lithuanian- long Lithuania and other Baltic Polish power interconnection is States, will be compatible. very important for us from three key aspects. First of all, there has ABB – global leader in been no power infrastructure advanced technologies with Western Europe until now. Secondly, we will participate in ABB, which started develop- the European free energy mar- ing of high voltage direct current ket and, finally, we will operate (HVDC) technologies 60 years our power system in a modern ago, is a global leader in this field way”, said Mr Poderys following today. The company has imple- signature of the agreement. mented about 90 HVDC projects This event was attended by with power transmission capaci- officials of the Government, ties exceeding 95,000 MW. Expe- Seimas and office of the Presi- rience in this field in particular dent, Ministries of Energy and allowed the company to submit Foreign Affairs of the Republic the best offer for the LitPol Link of Lithuania, his Excellency the direct current interconnection Ambassador of Poland to Lithu- public tender. The participants ania, representatives of Lithu- of the public procurement pro- anian and Polish municipalities cedure were evaluated based on and neighbourhoods associated economic benefit criteria. Offer with the power interconnection, price, payments terms, electri- representatives of the Lithuanian city transmission losses, reliability energy sector and guests from of facilities (energy accessibility) Sweden and Estonia. and the number of unplanned disconnections were taken into Direct current insert consideration. Taking all of the Virgilijus Poderys: LitPol Link will connect electricity infrastructures – a unique one above into consideration ABB of the and Western Europe submitted the best offer. The unique direct current in- continued from page 1 sert – 100 metres wide, 350 me- Construction works to start At the press conference fol- tres long and with the capacity in spring 2014 A key step towards the lowing the signing of the agree- of 500 megawatts (MW) – will energy independence of ment, the Minister of Energy be custom designed and built in According to the agreement, Lithuania has been taken Jaroslav Neverovič stated that the expanded transformer sub- which is worth LTL 288 million, construction of the direct cur- station in Alytus. The main pur- the Swedish company will pre- The signing of the agreement rent insert is a technical solution, pose of the direct current insert pare the technical project of marks the beginning of a new which will help to end the isola- is to combine different electricity the direct current insert with a stage. The design works of the tion of Lithuania as an energy transmission systems of Lithu- back-to-back converter station, most important facility of the island. “This insert is undoubt- ania and Poland. It will be possible perform all the necessary studies, LitPol Link power interconnection will commence shortly, with the At the press conference following the signing of the agreement, start of construction planned for spring 2014. The agreement was the Minister of Energy Jaroslav Neverovič stated that cons- signed by Virgilijus Poderys, CEO truction of the direct current insert is a technical solution, which of Litgrid, and representatives of the tender winner, the Swedish will help to end the isolation of Lithuania as an energy island. ABB technology company, mar- keting and sales manager Hans edly the first facility of its kind to transmit electricity through deliver and assemble the equip- K. Johansson and Chief Engineer in the Baltic States. Connecting the direct current insert from ment. The final part of the pro- Lars Weimers. ABB develops high two different power transmis- Lithuania to Poland and vice ject will involve ABB testing and voltage direct current (HVDC) sion systems – Eastern and the versa: the current in the facility technologies. remainder of continental Europe will alternate from direct to alter- see page 3

2 March 2013, No. 3 (15)

STRATEGIC PROJECTS continued from page 2 commissioning the new infra- structure. A direct current insert is a complex facility and so its construction and eventual op- eration will provide Lithuanian energy specialists with new knowledge and skills. Construction of the direct cur- rent insert will start in Alytus in spring 2014. At the same time, a high voltage electricity trans- mission line will be built for the LitPol Link and a 330 kV con- verter at Alytus substation will be rebuilt. It is expected that all of the works will be finished in time to allow the LitPol Link itself to be commissioned at the end of 2015. It will initially operate at 500 MW, and in 2020 the capa- city will double to 1000 MW.

LitPol Link – a European The agreement signing was attended by well-known guests from Lithuania, Poland, Sweden and Estonia Union priority project

The Lithuanian-Polish project being implemented in the Baltic included in the the energy isolation of the Baltic is a part of the Baltic Energy Mar- Sea region. The LitPol Link power (EU) priority list of energy pro- States and create a single power ket Interconnection Plan (BEMIP) interconnection, which is also jects, will contribute to ending market in the EU.

TODAY AND TOMORROW Litgrid Junior Professionals Programme – perfect start for a career in power engineering For the second consecutive year In February 2013, the programme Lithuanian electricity transmission was presented to a large crowd system operator Litgrid is imple- of students of Kaunas University menting the Junior Professionals of Technology. As observed by Programme. Students and gradu- Prof Saulius Gudžius of the Electrical ates from the electric engineer- and Control Engineering Faculty of ing programme are granted an Kaunas University of Technology, opportunity to work, study and the programme initiated by Litgrid gain knowledge from experienced offers an opportunity to success- Litgrid professionals and this fully compete in the job market. serves as the basis for their future “The greatest benefit from close career in the energy sector. cooperation between scientific institutions and companies is that Universities partner the students gain practical knowledge. programme Junior Professionals Programme encourages students to choose In cooperation with various less common professions, moti- Lithuanian universities, Litgrid se- vates them to learn and to apply lects the most talented and pro- the knowledge gained in practice”, So far students are taking active interest in the Junior Professionals mising young people ready to start Prof Gudžius said. Programme their career in power engineering. see page 6

3 ENERGY UPDATE

TODAY AND TOMORROW The plans of electricity network development lie in the hands of competent specialists

continued from page 1 to change their approach to the network, it is important to take into length. Calculations and network expansion and planning princi- account the influence this might analysis show that were there to be Transmission network is ples of the electricity transmission have on the production, transmis- a breakdown in one section of any like a highway network. At the same time the dy- sion and distribution of electricity. of these lines, ten or more 110 kV namics of the electric energy sec- substations might be discon- Most people probably think tor changed with the emergence Network development nected. In this case the supply of that the field of electrical energy of the free market and greater planning is a difficult and electricity may be disturbed. That is very complex but according to opportunities. responsible task is why we have to build additional Mr Jankauskas who has many years “The free electricity market is electricity lines to avoid critical situ- of experience in the field of energy, characterised by great flexibility According to Mr Jankauskas the ations”, says Mr Jankauskas. the electricity transmission net- and changes. We never know main documents laying down the The engineer also emphasised work is not as complex as it might which supplier or user of electri- tasks of the System Planning and that when preparing the expan- seem at first sight. city might become a part of the Research Division at Litgrid include sion plans for the electricity trans- “We could compare the elec- system and as a result we have to the National Energy Strategy, pre- mission network, inquiries are tricity transmission network with be prepared to adjust the plans scriptions of the Directives of the sent to the country’s major elec- the transport network. It would for the expansion of the electricity European Parliament and the EU tricity producers and users. Thus, be difficult to imagine the coun- try’s road network without our “We could compare the electricity transmission network with the highways. In the electrical energy sector Litgrid provides the ‘electri- transport network. It would be difficult to imagine the country’s cal’ highways. Litgrid maintains road network without our highways. In the electrical energy sector such “highways” in electricity sec- tor and is responsible that all the Litgrid provides the ‘electrical’ highways”, stated Mr Jankauskas. 330 kV and 110 kV key connections in our energy system function transmission network promptly. Council, Litgrid strategy for 2011-2020 important information is gathered impeccably, and users are guaran- Directives of the European Parlia- and recommendations of the about the need for electricity as teed reliable electricity transmis- ment and the European Union European Network of Transmission well as its production volumes. sion”, stated Mr Jankauskas. (EU) Council also prescribe for System Operators for Electricity The data obtained are later used updating the 10-year network de- (ENTSO-E). Other legal acts defining to assess whether the electricity Network expansion velopment plan annually. We have the activities and operational princi- transmission network is suitable matches the changed needs to follow the news of the electric ples of the transmission system op- and sufficient to transmit all of the of the country energy system constantly, because erator and electric energy system electricity produced in the country. this is the only way to ensure a sta- are also taken into consideration. For example, Lietuvos gele- The engineer admits that over ble supply of electricity for users”, The most important immediate žinkeliai intends to electrify the past two decades the entire says Mr Jankauskas. objectives include integration into almost the entire railroad network energy system of Lithuania has In order to be as accurate as pos- the European electricity market over the next ten years with the undergone significant changes. sible when preparing the network (pursued through strategic pro- resulting need for many new 110 kV Previously development of the development plans, it is important jects with Poland – LitPol Link and substations. A joint working group transmission network was geared to understand the operation of the Sweden – NordBalt), strengthening composed of Litgrid and LESTO more towards the needs of the then whole energy system. The electri- of the domestic electricity trans- experts for optimisation of the Soviet Union ‘Northern-Western’ city transmission network is just one mission network and preparation 110 kV network submits sugges- area rather than to the specific part of the system. Consequently, for the synchronous connection tions on the best way of connect- needs of Lithuania. After regain- when planning the renovation or with the European continental ing the new users to the system ing independence, specialists had replacement of one part of the network. When working on the while simultaneously surrendering development plans of local elec- the 110 kV substations that are fast tricity transmission network, the becoming obsolete. development plans of electricity transmission networks of neigh- The strategic electricity bouring countries have to be taken connection will enable the into consideration. synchronization of Lithuanian and European New challenges waiting electricity transmission systems According to Mr Jankauskas, the 110 kV transmission network is fairly According to the leading engi- well developed. “There are some neer of the System Planning and overhead electricity lines, for instance Research Division, the planning Alytus-, Klaipėda-Mažeikiai, of the 330 kV electricity transmis- While drafting the plans for development of the network, it is which are 160 km and more in important to assess the operation of the entire energy system see page 5

4 March 2013, No. 3 (15)

TODAY AND TOMORROW continued from page 4 Scheme of the Lithuanian 330-110 kV electricity transmission system sion network is a somewhat more complicated task. In order to suc- Latvia cessfully synchronise the Lithu- anian electricity transmission system with the European con- + + + + ++ + tinental network, it is important + + + + + + + + + + + to build a strategic electricity + Mūša + + + Telšiai + + + connection with Poland – the ++ + + + + + + + LitPol Link. Currently, the construc- + + + + + + Panevėžys+ tion works are underway, and the Šiauliai + + + + + + + connection is expected to start + Klaipėda Utena+ + + + + + operating at the end of 2015. + + + + + Sweden + + + + ++ Mr Jankauskas spoke especially + + + + + + + + + Visagino AE positively about the works relating + + + ++ + to the LitPol Link connection say- + Bitėnai + + + Jonava+ + + + ++ + + ing that after a lengthy period of + + + + + + + + + time the project has finally taken Jurbarkas + +Kaunas+ + Lietuvos +Neris shape. “The first discussions con- Russia Kruonio elektrinė + cerning the building of a Lithua- + HAE + ++ + + + ++++ Belarus nian-Polish electricity connection + + + + + +++ N.Vilnia+ ++ + + started back in 1992. Since then, I + + + + have participated in many work- + + Vilnius+ + Alytus+ + + ing groups examining different + + + + methods and ways of connecting + + the systems. One of the proposals + related to the connection of the Poland Lithuanian and Polish systems was via Kruonis Pump Storage Power Plant. That would have been a One of the greatest chal- unique technical solution having WindWind park park + +prospectiveprospective 330 330kV switchyard kV switchyard lenges in the Lithuanian energy no other equivalents anywhere HeatHeat power power plant plant prospectiveprospective 330 330kV cabel kV cabel sector refers to synchronisation HydroHydro power power plant plant else in the world; however, the 2 330 330kV prospective kV prospective line line of the electricity transmission countries could not reach agree- ProspectiveProspective nuclear nuclear power power plant plant system with the European con- 400400 kV prospective kV prospective line line ment about specific works. None- HydroHydro power power plant plant tinental network. The Swedish company, Gothia Power, is cur- theless, the agreement on the + +330 330kW transformerkW transformer substation substation 330 330kV prospective kV prospective line line construction of the back-to-back rently conducting a study about 330 330kW prospectivekW prospective substation substation 110 kV110 line kV line converter station in Alytus signed + + the connection possibilities of on 15 February by Litgrid and the + +330 330kW switchyardkW switchyard ++110 kV110 transformer kV transformer substation substation the system. However, it is impor- Swedish ABB company means that tant to foresee right now how at the end of 2015 we will have mission System Operators for Elec- He has also attended the Argonne the system will function follow- the first electricity connection tricity ENTSO-E in order to evaluate National Laboratory in Chicago, ing synchronisation. The expan- with continental Europe”, said additional possibilities for the con- USA where he learnt about fore- sion of the Lithuanian electricity Mr Jankauskas. nection of the Baltic States with casting energy needs. transmission network is based The drawing up of the regional the Northern and Western Europe The engineer notes that on studies and calculations that plans of the electricity transmis- transmission networks. nowadays various internatio- are updated annually. sion network is based on various nally known methods are used to When working on the 10-year cross-border studies. The Baltic Network development establish energy needs; one only electricity transmission develop- Network 2025 study was conduct- planning based on has to choose the most appropri- ment plan, the specialists try to ed in association with the Latvian thorough analysis ate method that gives the most calculate all the technical capaci- and Estonian experts, Baltic Ring accurate results. “Currently we ties of the network as accurately – together with energy specialists Mr Jankauskas points up that use an econometric model based as possible, to take into account of other countries of the Baltic Sea all the development plans of the on gross domestic product (GDP) the possible regimes after break- region. These and other studies electricity transmission network fluctuations”, he stated. downs, to evaluate the weak- examined the possibilities for elimi- are based on both technical- Based on changes of national nesses of the transmission net- nation of energy isolation of the engineering and socio-economic GDP in per cent, electricity fore- work and to foresee the network whole Baltic region and establish- benefit calculations; it is, therefore, cast needs can be worked out and changes required to eliminate ment of the Baltic States market. important to constantly monitor in turn used to plan the expansion them at the lowest cost. “Our Later on, the findings were used in changes in the electricity market of the country’s transmission net- objective is to guarantee respon- the preparation of the long-term and to comprehend their causes. work. However, when estimating sible and rational distribution of plan of the Lithuanian electricity Mr Jankauskas has attended cour- electricity needs based on GDP it investments to the electricity transmission system. ses on the applied power system is important to consider possible transmission network in order to At present, there is ongoing simulation software tool PSS/E in economic shocks, for instance, ensure reliable electricity trans- cooperation with the regional the USA held by the PTI energy economic crises, which can have mission for its users”, stated working group of the Baltic States technology company (currently a particularly strong impact on Mr Jankauskas. in the European Network of Trans- owned by the Siemens company). electricity needs.

5 ENERGY UPDATE

TODAY AND TOMORROW Litgrid Junior Professionals Programme – perfect start for a career in power engineering

continued from page 3 The students learn how to perform both students and Litgrid em- provide their diploma, copies of tasks that demand high intellec- ployees. The Junior Professionals transcripts or a certificate show- Last year three students started tual capabilities from professionals. Programme was recognised as ing their average grades for the their careers at Litgrid with the The experience of the past the Best Initiative of the Year 2012. previous two semesters (if they help of the Junior Professionals couple of years shows that the According to employees, the are still studying), a one-page syn- Programme. Special education Junior Professionals Programme young professionals employed opsis of their BA or MA thesis, and programmes were devised for attracts many students. Students in the company have a thirst for a lecturer’s reference. Young pro- them and helped them to apply who hold a degree in economics knowledge, are persistent, and fessionals who wish to participate knowledge acquired at university last year could apply for a trainee want to learn more. The selected in the selection process must be and hone their practical skills. All place in the Strategy and Market young representatives of the engi- at least in the 4th year of their BA the young professionals success- fully completed the tasks assigned As observed by Prof Saulius Gudžius of the Electrical and to them and presented their per- formance results to their managers. Control Engineering Faculty of Kaunas University of Virgilijus Poderys, the CEO of Technology, the programme initiated by Litgrid offers an Litgrid, explains that Litgrid is a company open to good students. opportunity to successfully compete in the job market. “When we see inquisitive students who are seeking knowledge, we Development Unit of the Strategy neering or economic fields often studies in electrical engineering do not hesitate to provide them Department. make highly innovative propo- or another energy field. with opportunities for further im- Nearly 50 candidates, of whom sals. The successful experience of provement. It is also important a third were female students, incorporating young profession- Benefits of the programme that the students who choose the applied for the Junior Professionals als in the company’s activities en- Junior Professionals Programme Programme last year. courages Litgrid to continue the Because of the huge impor- can continue their career in the This year participants in the programme. tance of electric energy across company”, Mr Poderys said. Litgrid programme were offered The selection of young profes- the world, this area will always job positions in the Power Sys- sionals requires identifying the be a priority in all countries, Almost 50 candidates tem Operations Department, candidates’ potential, analytical including Lithuania. Therefore, Strategy Department and Trans- thinking, willingness to explore students who plan to study but Litgrid’s most highly qualified mission Grid Department and understand processes, dili- have doubts regarding the field professionals who have ten or more gence, and communication skills. of electrical engineering should years experience in the energy sec- Recognition of potential To make assessment more objec- only make up their minds as tor are the best teachers for gradu- tive, the candidates must provide to whether this field is person- ates and current stdents of the The company’s initiative has not only a CV and a cover letter. ally attractive and interesting. The electric engineering programme. been favourably evaluated by In addition, they are required to Junior Professionals Programme organised by Litgrid encourages students to select their favourite fields of study and to apply their theoretical knowledge in practice. The strength of the programme is that students involved in the pro- gramme continue to work for the company. The benefit of the Junior Pro- fessionals Programme is mutual. Students get a chance to make their first steps in their profession- al life, and the company receives the possibility to nurture a new generation of energy specialists who in a few years will contribute to the development of electric energy projects important to all Lithuania.

The programme provides students with knowledge valuable for their future careers

6 March 2013, No. 3 (15)

TRANSMISSION SYSTEM OPERATOR NEWS Students prepare electric energy plans for the next three decades

In February, students who are interested in technology, enjoy experimentation, and are not afraid of new challenges were in- vited to participate in the EBEC’13 Kaunas engineering competition. The BEST Kaunas competition organised by the International Students Organisation of Kaunas University of Technology attracted enthusiasts who wanted to test themselves in the areas of techno- logy, engineering and energy. The competition has been organised for 7 years and is the only competition of this kind in Lithuania. The Engineering EBEC (European BEST Engineering Com- petition) competition consists of a case study and engineering tasks. Teams are free to choose the type of contest, but the specific task is Participants in the EBEC engineering competition acquire new skills and experiences decided by chance. The teams that opted for the 2050. Litgrid drew students’ at- energy plan for the next 30 years is Ms Petronienė was pleased that engineering contest had to cons- tention to the need to strengthen a difficult task even for energy pro- the team that did the best job truct a device in half a day: for ex- the power transmission network, fessionals. However, the broad task solving the Litgrid task not only ample, to produce a wind turbine encouraging students to provide inspired the young scientists to be provided theoretical insights, but model generating electricity from ideas on how to achieve this in interested in the relevant issues of also performed preliminary calcu- an old printer. The case study was Lithuania and on the regional and the Lithuanian electric energy sec- lations for the Lithuanian electric based on theoretical insights. European levels. tor. Introducing their task to the energy system. It is interesting Representatives of the companies “When formulating our task for contestants, the Litgrid staff em- that these estimates differ only a that drafted these tasks provided the competition, we encouraged phasised that there would be no little from the actual calculations a variety of engineering prob- students to look at energy chal- wrong answers in the preparation of the professionals of the electric- lems. The students had to solve lenges creatively and innovatively. of the strategy. ity transmission system operator. them in a week and present them I believe that this competition Of the five teams that per- The winning team was awarded to the jury. The companies that will provide valuable experience formed the Litgrid task, the panel a unique opportunity to visit the prepared the tasks encouraged and new skills to many par- of experts was most impressed Power System Control Centre in students to offer guidelines and ticipants”, Ramūnas Ponelis, the with the team JDĄM. According to Litgrid. workable, realistic solutions. This year, Litgrid, the Lithuanian “When formulating our task for the competition, we encour- electricity transmission system operator, joined other organisers aged students to look at energy challenges creatively and inno- of the competition. The task pre- vatively“, Ramūnas Ponelis, the head of the Technical Division sented by Litgrid, “The Lithuanian electric energy system 2050”, was of the Litgrid Transmission Network Department, said. under the case study category. Us- ing their creativity, technical and head of the Technical Division of Litgrid engineer Laima Petronienė, The EBEC competition is organ- management skills, students had the Litgrid Transmission Network they stood out with their sharp ised not only at the national level, to submit their vision of what the Department, said. minds and sense of initiative. Work- but also at the regional and the Eu- Lithuanian energy system would The Litgrid task involved the ing on their task, JDĄM set itself the ropean level. At the end of Febru- look like 30 years from now. The daily work of the company’s strate- goal of forecasting the priorities of ary, the winners of the competition vision had to specify electricity gists in planning the development the Lithuanian energy sector in the at Kaunas University of Technology consumption and the maximum of the electricity sector and ensur- next 3 decades. “That strategy al- participated in the second, region- capacity of power plants required ing its reliable operation. Of course, lowed the team to become a win- al stage of the competition in St. for Lithuania in 2020, 2030 and preparing the Lithuanian electric ner”, Ms Petronienė said. Petersburg.

7 ENERGY UPDATE

ENERGY SECTOR NEWS Drop in prices in Nord Pool Spot 20

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Sweden, 4th zone Finland Estonia ELE zone Lithuania Prices in Nord Pool Spot electricity exchange from February 1 to 28

In the Scandinavian countries, attended the conference. Lithuania’s tricity in Elektrėnai. As compared to the wholesale price of electricity in energy effectiveness is half the EU 2011, 29 per cent more electricity was February was lower than a year ago. average and this figure also means produced in Elektrėnai in 2012. Although the reservoir stock of hy- that businesses are not making effec- Nord Pool Spot electricity droelectric power plants was lower tive or rational use of electricity. The exchange in February than the annual average, plant op- conference was a perfect opportu- erators were less likely to save water nity for business representatives to The average market price of and instead to generate and sell see real examples of how to improve electricity in the Nord Pool Spot electricity. For this reason, electricity energy-saving solutions and reduce Lithuanian bidding area in Febru- futures prices signalled the likely fall general business expenses. Shares of Visagino ary was 14.8 ct/kWh and was 2% in the price of electricity in the fu- atominė elektrinė were lower than in January (15.1 ct/kWh). ture. Another reason for lower prices transferred to the The price decreased due to warmer was generation at nuclear power Ministry of Finance than normal weather, 6% lower plants, which exceeded the level electricity demand, and greater of last winter by nearly 2,000 mega- On 26 February, the Minister of sales of wind-generated electri- watts (MW). Successful commercial Finance Rimantas Šadžius signed city. In addition, electricity prices activity makes a profit for the the Transfer-Acceptance Act of the fell in February in the neighbour- Lietuvos energija group shares of Visagino atominė elektrinė ing markets. In February, 33.3 (VAE) controlling the largest energy million kilowatt-hours (kWh) of In 2012, the net profit of the companies of the country. Effectively wind-generated electricity was sold Lietuvos energija group, namely, this means that management of VAE in Lithuanian bidding area, 19% more Business interested in AB Lietuvos energija, UAB Energijos is transferred from the Ministry of than in January. Due to reduced energy-saving solutions tiekimas, UAB Kauno energetikos Economy to the Ministry of Finance. prices for electricity in Estonian remontas and UAB Technologijų ir Along with VAE, control of the larg- and Estonian-Latvian bidding areas, For the third year in a row, a con- inovacijų centras, was LTL 36 million est energy companies of the country the supply of Estonian electricity to ference for business on the rational and was 18 times higher than in belonging to UAB Visagino atominė Lithuania has increased. use of energy was organised by 2011; as compared to the previous elektrinė, namely, LESTO, Lietuvos In February, the price of electri- Lesto, the Lithuanian distribution year, the revenues of the group in- energija, VAE-SPB, Technologijų ir city also decreased in Finland and network operator, and the daily creased by LTL 14 million and were inovacijų centras, NT Valdos, Kauno Estonia. The price at the Estonian Verslo Žinios. This was part of the LTL 1, 444 million. energetikos remontas, Energijos power exchange fell to 13.7 ct/kWh initiative As Much As Business Needs This growth in profit is first of all tiekimas, Elektros tinklo paslaugos, due to local power generation (Tiek, kiek reikia verslui). During the related to the successful commer- Respublikinis energetikų mokymų volumes which in recent years ex- event, practical energy-saving so- cial operation of the group in the centras and Gotlitas, was transferred ceeded records. In the Estonian- lutions enabling businesses to not free energy market. Although com- to the Ministry of Finance. Latvian bidding area the average only increase their competitiveness petitiveness in the market grew Following a Government decision, price of electricity in February was but also to contribute to the imple- in 2012, group sales increased by Lietuvos energija will soon be com- 14.3 ct/kWh. Electricity prices in the mentation of global objectives in more than one fifth. For example, missioned to control all state compa- Estonia-Latvia bidding area were preserving natural resources were Energijos tiekimas, provided ser- nies of the Lithuanian electricity and higher due to the lack of transmission discussed. vices to around 35-40 per cent of heat sector, and this will also include capacity between Estonia and Latvia. Representatives of different Lithu- free-market users. Visagino atominė elektrinė. These anian companies shared their prac- The increase in profit was also companies will compose a new tical experience in saving energy affected by the effective manage- group of companies (holding) of the Subscription resources in manufacturing and ment of the group performance. In electricity sector, and this will also be To subscribe to Energy Up- their effective solutions allowing to 2012, Lietuvos energija completed under the responsibility of the Minis- date, the newsletter of the reduce energy consumption in retail the construction of the 9th unit in try of Finance. This reform will help to electricity transmission sys- and other industries and branches Elektrėnai. According to estimations, manage energy strategy more effec- tem operator Litgrid, write to of trade. the new unit will use 30 per cent less tively and lead to more responsible [email protected] Almost 300 participants from natural gas than the old ones, and in administration of both the heating more than 160 Lithuanian companies 2013, it will produce most of the elec- and electricity sectors.

ISSN 2335-2167 This newsletter is based on information Further information: Litgrid AB that has been made public by Litgrid and Laura Šebekienė, Electricity Transmission System Operator (TSO) other energy companies, Lithuanian and Head of Communication, Litgrid A. Juozapavičiaus St. 13, LT-09311, Vilnius, Lithuania foreign electricity exchanges, and energy Phone: +370 5 278 2428, +370 693 65377 Phone: +370 5 278 2777, Fax: +370 5 272 3986 analysts. E-mail: [email protected] E-mail: [email protected], www.litgrid.eu 8