News

Brussels, 13/02/2008 (Agence Europe) - After months of shilly-shallying by Vilnius and Warsaw (see EUROPE 9556), on Tuesday 12 February, the transmission system operators (TSOs) of Lithuania Lietuvos Energija and Poland PSE Operator signed an agreement on the joint company to build the “PowerBridge” linking Lithuania and Poland and connecting the Baltic electrical system with the continental European power grid through Germany.

Under the terms of the agreement, the two signatory companies will each hold 50% of the shares in the consortium. The agreement, due to come into effect within the month, provides for the consortium, which will be managed by a Lithuanian but registered in Warsaw, preparing a technical project, revising and approving the routes of the new power lines and conducting an environmental impact assessment.

The consortium will begin work in April. The interconnection of the Lithuanian and Polish power grids involves the construction of a 154 kilometre high voltage (400kW) transmission line between Alytus (Lithuania) and Elk (Poland).

According to the preliminary assessment, the project could be completed by 2012-2015. Its cost is estimated at €237 million (€71 million in Poland and €166 million in Lithuania). Additional investment of €371 million and €95 million in Poland and Lithuania respectively will be needed to reinforce national power grids to ensure transmission capacity and cross-border flows.

The agreement was immediately welcomed by Energy Commissioner Andris Piebalgs. When asked by EUROPE, his spokesman Ferran Tarradellas particularly acknowledged the mediation on the energy project, which the March 2007 European Council said was a priority, by European coordinator Wladyslaw Mielczarski. (E.H.)