Brussels, 28/04/2015 (Agence Europe) - In a decision on the allocation of costs for the Lithuanian part of the electricity interconnection between Lithuania and Poland (LitPol) published on Monday 27 April, the Agency for the Cooperation of Energy Regulators (ACER) says that Lithuania, as a net beneficiary of the project, does not need financial compensation for the investment from the other member states benefiting from the project - Germany, Finland, Latvia, Sweden and Norway.
In its evaluation of the Cross-Border Cost Allocation (CBCA), ACER concluded that the LitPol project would not result in a negative advantage for Lithuania. Compensation is only granted if at least one country hosting the project is deemed to have a net negative advantage.
ACER assesses the cost for the Lithuanian promoter of the project, transmission system operator LitGrid, to be €124.6 million. The total estimated cost of the project is €370 million, to be shared between Lithuania and Poland.
Lithuania, which is using its own resources to fund the project, was seeking compensation of €47.1 million from Sweden, €38.1 million from Norway and €47.1 million from Germany to help it cover its costs.
ACER decides on cost sharing for infrastructure projects of common interest when the regulators of the countries concerned do not manage to come to agreement within the six months following the request.
The LitPol interconnection will link the electricity networks of Lithuania and Poland as part of the Baltic Energy Market Interconnection Plan (BEMIP). (Emmanuel Hagry)