Estonian, Lithuanian leaders try to bridge Baltic "energy islands"

Jan 27, 2009, 11:04 GMT

Tallinn - The prime ministers of Estonia and Lithuania met Tuesday in the Estonian capital, Tallinn, to wrestle with the Baltic states' 'energy island' status within the European Union.

The electricity systems bequeathed to the Baltics by the 50 years of Soviet occupation which ended in 1991 have hindered attempts at full energy integration.

Currently, a cable from Estonia to Finland called Estlink is the only major connection joining the Baltics to the Nordic grid, with a further link, Estlink 2, in the advanced planning stage.

Lithuania has EU backing for a land link to Poland and both Lithuania and Latvia have competing claims for an underwater cable across the Baltic Sea to Sweden.

'We have big challenges to reform our energy sector and integrate with our Nordic and European neighbours,' Lithuanian prime minister Andrius Kubilius told reporters.

He said a decision to create a brand new energy ministry had resulted of frustration with the slow pace at which vital projects such as the Polish and Swedish links plus the planned construction of a new nuclear power plant were proceeding.

'We were not satisfied with the speed the previous government was able to show in implementation of those strategic projects,' he said.

'For us it will soon be important to gain access to additional alternative supplies from the Nordic countries. We have a strong commitment from the EU towards our interlink between Lithuania and Poland, which has strategic importance, but this link is not bringing us alternative energy supplies because Poland has a deficit,' Kubilius said.

The Lithuanian prime minister announced that at end of March there will be a trilateral Baltic meeting in Vilnius to put energy issues 'on a more practical basis.'

Estonian prime minister Andrus Ansip said Estonia did not need to create its own dedicated energy ministry and said plans for Estlink 2 were 'doing quite nicely.'

He also refused to be drawn on whether he thought Latvia or Lithuania had the best claim for a Swedish energy link.

'It is up to Lithuania and Latvia to figure out which country would be better for this cable. Estonia will take care of the Estlink 2 cable, which is our priority,' Ansip said.

The two leaders confirmed that in future all three Baltic states would adhere to the Nord Pool rules which govern energy prices and create a single energy market in the Nordic countries, with the aim of the Baltic states joining the Nord Pool system by 2013.