Generation and transmission interconnections

4 July, 2013Virgilijus Poderys

CEO of LITGRID AB

Internal electricity market

Energy industry

Sustainability

Energy security

Competitiveness

Renewable energy sources

Security of energy supply

R&D achievements

Grid batteries

Carbon capture systems

Offshore wind parks

Small scale nuclear power plants

Fourth generation nuclear power plants

Vehicle-to-grid

Smart grid (smart metering)

North West Europe price coupling due in November

...

Investments into R&D in utility business

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more than 7 times lower than the EU average among other industries

more than 25 times lower than in the EU technological industries

the lowest income from innovative products among all other major industries

(Institute for Prospective Technological Studies of the European Commission's Joint Research

Centre)

no a utility company in the top list of the world’s most innovative companies

Why is it so?

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Historic market design

Policy making

Regulatory environment

‘As regulated companies, TSOs have limited access to the financial benefits of technological innovation. The lack of explicit regulation means that R&D expenses are often treated as any other operating expense. In fact, the drive towards increasing cost-effectiveness tends to reduce R&D allotments on a yearly basis.’ (an extract from ENTSO-E R&D Roadmap 2013-2022, p. 27)

What should be done?

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let the market play its role

 

fix and improve EU ETS

 

harmonize subsidy schemes for RES in all Europe and integrate RES into the

European market

introduce SMART regulation

Nordic countries (zonal) 1 GW

2016 Baltic peak demand and cross-border capacities

4,9 vs 4,8 GW

Poland (central dispatch) 0,5 GW

3rd countries0,6 GW

Nordic countries(zonal) 0,7 GW

3rd countries (nodal) 2 GW

Baltic electricity markets in 2016 – crossroad of energy flows

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► Lithuania is the crossroad in Baltic-Nordic-Polish-Russian/Belarusian market

Thank you for your attention!

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