OREANDA-NEWS. On February 12, 2007 CEOs of electricity transmission system operators Lietuvos Energija and PSE Operator (Poland) signed a shareholders agreement on joint venture, which will implement the interconnection project of Lithuanian and Polish power systems, reported the press-centre of Lietuvos Energija.

Lietuvos Energija and PSE Operator will each own 50 per cent of the joint venture shares. Within one month, after the shareholders agreement comes into effect, articles of association of the joint venture will be signed. It is projected that the joint venture will first prepare a technical project, revise and approve routes of the new power lines, conduct an environmental impact assessment, other preparatory works.

The newly established joint venture will be managed by a Lithuanian representative. The company will be registered in Poland, Warsaw. It will start its operations in April, this year. 

“The interconnection project of Lithuanian and Polish power systems will make it possible to complete the Baltic Energy Ring, interconnecting Lithuanian, Latvian, Estonian, Finnish, Swedish and Polish power systems, which will help ensure the operation security and reliability of Baltic power grids, their integration into common European power market and connection to UCTE system, while for Poland it will help secure power supply for the country’s north-eastern region” – says Mr.Rymantas Juozaitis, General Director of Lietuvos Energija AB.

The interconnection of the power grids involves a construction of 154 km high-voltage (400kV) double-circuit power transmission line from Alytus to Elk (Poland). According to preliminary evaluation, the project can be finished by 2012-2015.  The project implementation is estimated at EUR 237 million of investments: EUR 71 million in – Polish territory and EUR 166 million – in Lithuanian territory.

In order to ensure transmission capacity and cross-border flows, it is necessary to reinforce not only Lithuanian, but also Polish domestic power grids. This will require additional investments: EUR 371 million – in Poland and EUR 95 million – in Lithuania.  The reinforcement of domestic grids must be self-financed by the project parties. The reinforcement of domestic power grids in Poland and Lithuania will be done in stages.

The project has been included into a priority list of European Union projects. The European Commission has designated a coordinator, responsible for the project’s implementation – professor Wladyslaw Mielczarski.