Brussels, 18/06/2009 (Agence Europe) - On 17 June, the eve of the European Council (18-19 June), the heads of state and government of the eight EU member states bordering on the Baltic Sea (Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Poland and Sweden) signed a memorandum of understanding (MoU) on the planned interconnection of the Baltic region's energy markets. Commission President José Manuel Barroso said that this signing bore testament to the solidarity that permeated discussions between the Commission and member states. Barroso it was who initiated the plan, at the end of 2008, to end the energy isolation of the Baltic counties and ensure the region's energy security.
The signing of the MoU marks the beginning of the implementation of the action plan to set up a fully operational, fully integrated energy market, with all the necessary infrastructure. The Swedish Presidency of the EU will provide follow-up to the plan, the implementation of which will be under Commission control. The Baltic interconnection plan is one of the priority infrastructure projects in the energy security and solidarity action plan (November 2008, see EUROPE 9782). With the extension of the Northern electricity market model to the Baltic States, it is also a flagship project of the strategy for the Baltic (June 2009, see EUROPE 9918). An initial progress report will be submitted in December. Several infrastructure projects, totalling half a billion euro, linked together in the Baltic interconnection plan form part of the European economic recovery plan.
The Baltic interconnection plan is based on the conclusions of the high level group, formed in October 2008, conclusions which cover three areas: - integration of the electricity market. The organisation of the electricity market is built on the Northern market model. A roadmap sets out the practical stages to be followed for the implementation of the new market model and eliminating obstructions to the creation of a regional market (removal of regulated tariffs, separation of operators' supply and transport activities, removal of cross-border restrictions and congestion, opening up of the retail market, creating a joint exchange for trade flows); - interconnections and electricity production. Covered by the initiatives launched by European coordinators Georg Wilhelm Adamowitsch and Wladyslaw Mielczarski, three kinds of infrastructure projects to integrate the region's electricity markets are underway. The master plan for the Northern countries, which covers projects, such as Fenno-Skan II (Finland/Sweden), Grand Belt (Denmark), Nea-Järpströmmen (Sweden/Norway), the South axis (Sweden), Skagerrak IV (Denmark/Norway). Also, electric interconnections linking the Baltic countries to Poland and the Northern countries, such as NordBalt (Sweden/Lithuania), Estlink-2 (Estonia/Finland) and LitPol (Poland/Lithuania), and the strengthening of the network among Baltic countries. Lastly, interconnections between Poland and Germany, the reason for which is the loop-connection flows related to windfarm production in the North Sea; - gas market and infrastructure. The creation of new interconnections, inversion of flows in gas pipelines, development of LNG installations and gas storage seek to ensure the security of the region's gas supply