Baltic Ring Study - Executive Summary
The Baltic Ring Report conclusions from the
work towards a common Baltic electricity market
- An effective and reliable energy supply is an
important condition for economic growth and environmentally
sustainable development. The European Union has
given priority to the development of a common Baltic
electricity market as one of the major Transeuropean
- This Baltic Ring report is the result of a co-operation
between 18 power companies and utility organisations.
The conclusions of the study that has been going
on for 2 years, were presented in Riga on January
- The project group has collected extensive data
on the plans of production, transmission and other
important energy issues concerning the countries
involved. Based on this, an analysis describing
the benefits of energy integration in the Baltic
Region has been made.
- The Baltic Ring report identifies many advantages
of a common electricity market. Higher stability
and possibilities of reducing emissions through
common environmental standards create extensive
benefits for the region as a whole. In economic
terms, a common market can lead to lower running
costs and reduced investment needs.
- Before these possibilities can be fully utilised,
however, a number of changes are needed. To avoid
"environmental dumping" and give all players
equal conditions on the market, environmental and
trading rules need to be harmonised. The integration
should be driven by and market forces and socio-economic
aspects and not solely by an increased electricity
- The environmental aspects need to be developed
further through Activities Implemented Jointly.
This would take the establishment of a legal and
financial framework which allows for environmental
investments, such as the renewal of power plants
in the region.
- Combined Heat and Power plants are especially
suitable for combining environmental sustainability
with an effective and reliable energy supply.
- Further co-operation between the partners involved,
in the form of the Baltic Ring Electricity Co-operation
(BALTREL). Launch a study on the possibilities of
Activities Implemented Jointly to reduce emissions
of CO2, SO2 and NOx in the region.
- Establish an overhead connection between the Western/Central
European networks with those of Russia, Belarus
and the Baltic states to serve as a supply opportunity
in both directions and promote the electricity market.
- Initiate rehabilitation of Combined Heat and Power
(CHP) plant 2 in Riga and construction of new CHP
capacity in Kaliningrad.
Further information will be available on Internet,