Energy News

Poland, Lithuania agree to hook up power grids

Sep 29, 2006, 14:41 GMT

Warsaw - Poland and Lithuania on Friday formally agreed to build a strategic 'energy bridge' hooking up the electrical power grids of both countries for between 300 and 400 million euros.

Poland's President Lech Kaczynski and visiting Lithuanian President Valdas Adamkus signed a joint declaration on the project in Warsaw.

Striving to ease its heavy reliance on Russian energy supplies, the Baltic state of Lithuania has been seeking the link with Poland for years.

It has also proposed that Poland become a partner in building a third reactor at Lithuania's Soviet-era Ignalina nuclear power station.

Fellow Baltic states Estonia and Latvia, also keen to diversify energy suppliers and ease energy reliance on Russia, have expressed interest in the project.

Lithuania also recently concluded agreements to hook up to the Swedish electrical power grid with a cable under the Baltic Sea. It is considering a similar link with Finland.

As a sign of more fusion between the Polish and Lithuanian energy sectors, Poland's major PKN Orlen oil refiner is also in the process of buying-out Mazeikiu Nafta, Lithuania's only oil refiner.