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Power prices in Baltics nearly double after cut from Russian grid
Power prices in Baltics nearly double after cut from Russian grid

Russia Today

time12-02-2025

  • Business
  • Russia Today

Power prices in Baltics nearly double after cut from Russian grid

Electricity prices in the Baltic region have nearly doubled since Estonia, Latvia, and Lithuania disconnected from Russia's electricity transmission grid last week, trading data from Nord Pool showed on Wednesday. The network that the three Baltic states left, called the BRELL Energy Ring, synchronized the grids of Belarus, Russia, Estonia, Latvia, and Lithuania under Moscow's central dispatch. However, several years ago the three EU states pledged to eventually cut their systems off from BRELL, claiming that reliance on a network controlled by Russia jeopardized their energy security. On Sunday, they announced having successfully disconnected from BRELL and synchronized their systems with the European continental power grid. However, according to figures from Nord Pool energy exchange, while the average price of electricity in the Baltics in January was €92 ($95) per megawatt-hour (MWh), it jumped by roughly 25% to €125 euros per MWh following the grid switch. On February 12, the average price of electricity in Latvia, Lithuania and Estonia soared further to €230 euros per MWh, more than doubling from last month's average. Some experts have argued that the price spikes are not attributable to the grid switch, which they portray as merely symbolic, as all three countries had long since stopped buying Russian and Belarusian electricity. Nevertheless, the Baltic nations continued relying on the Russian grid to control frequencies and stabilize networks to avoid outages. READ MORE: Moscow comments on Baltic states' switch from ex-Soviet grid Estonian gas transmission system operator Elering blamed the recent spike in prices on low wind and solar output, higher electricity consumption due to a cold snap and an increase in natural gas prices over the past week. Other experts also noted that the Baltic states are currently lacking some of their regular electricity connections, such as the Estlink 2 cable to Finland and the NordBalt cable connection with Sweden, both of which were damaged late last year. The operator for the Unified Energy System between Russia and Belarus said last week that the withdrawal of the Baltic States from BRELL did not affect its grid, and that the energy system of Kaliningrad Region was secure. The Russian mission to the EU last week warned that the decision by the Baltic nations to disconnect from BRELL would only worsen the economic prospects for the bloc, and said it saw the move as politically motivated. 'Disconnecting from the BRELL... will drive up regional electricity prices, make power grids less reliable, and further erode the EU's economic competitiveness,' the mission said on Telegram on Saturday. Russian Foreign Ministry spokeswoman Maria Zakharova also criticized the move in a statement on Sunday, calling it their 'logical next step in destroying their countries and peoples that once had all the prerequisites for prosperity and independence.'

Why have Baltic states unplugged from Russia's electricity grid?
Why have Baltic states unplugged from Russia's electricity grid?

Al Jazeera

time10-02-2025

  • Business
  • Al Jazeera

Why have Baltic states unplugged from Russia's electricity grid?

The Baltic countries of Estonia, Latvia, and Lithuania have officially severed the flow of electricity between themselves and Russia after officials switched off the Soviet-era grid's transmission lines and joined the rest of Europe. This came more than three decades after the collapse of the Soviet Union, ending the Baltics' final energy ties to oil- and gas-rich Russia. For the three countries, as well as the rest of Europe, the move was steeped in geopolitical and symbolic significance. Here's what you need to know about the Baltic countries ending electricity ties with Russia: What happened? On Saturday, all remaining transmission lines between the Baltic countries and Russia, Belarus and the Russian exclave of Kaliningrad, wedged between EU members Poland and Lithuania and the Baltic Sea, were switched off one by one. For 24 hours after detaching from the Soviet-era grid, the Baltic Power System operated independently before being merged with European energy networks on Sunday afternoon. After disconnecting from the IPS/UPS network, the Baltic nations cut cross-border high-voltage transmission lines in eastern Latvia, some 100 metres from the Russian border, handing out pieces of chopped wire to enthusiastic bystanders as keepsakes. Analysts say that maintaining a constant power supply requires a stable grid frequency, which can more easily be obtained over time in a large synchronised area such as Russia or continental Europe, compared with what the Baltics can do on their own. Why were they getting their electricity from Russia, and why did they stop? The Baltic states inherited their electricity infrastructure from the Soviet Union, established in the 1950s, and remained part of Russia's BRELL network even after gaining independence in 1990. Although they stopped buying Russian electricity after the 2022 invasion of Ukraine, their power grids remained physically connected to Russia and Belarus. This meant their electricity supply was still controlled from Moscow, leaving their factories and essential facilities dependent on Russia for stable power. How much did Russia provide electricity to these states? According to a report by Free Policy Briefs, a publication affiliated with the Forum for Research on Eastern Europe and Emerging Economies (FREE Network), the Baltic states imported approximately 10 percent of their electricity from Russia before 2022. Where will the Baltic states now get their electricity from? The power system has been merged with the European energy networks through several links with Finland, Sweden and Poland. What does it mean for the Baltic states? The severing of electricity was praised by the European Commission and the Baltic states. 'The Baltic energy system is finally in our hands, we are in full control,' Lithuania's Energy Minister Zygimantas Vaiciunass said. The country's president, Gitanas Nauseda, told The Associated Press news agency that it was a 'historic moment, marking the end of a long journey for Lithuania, Latvia and Estonia'. 'From now on, we have achieved full energy independence. The period of political pressure and blackmail is finally over,' the president said. The EU welcomed the Baltic states joining its electric grid. 'Russia can no longer use energy as a tool of blackmail,' said Kaja Kallas, EU high representative for foreign affairs and security policy. Kallas was Estonia's first female prime minister, from 2021 to 2024. What does it mean for Russia? The decoupling means Russia's Kaliningrad exclave, located between Lithuania, Poland and the Baltic Sea, is cut off from Russia's main grid — it must now maintain its power system alone. The Kremlin said it has taken all necessary measures to ensure uninterrupted, reliable operation of its electricity system, including the construction of several gas-fired power plants in Kaliningrad. 'Electricity lines with Russia and Belarus are being dismantled. These chains of power lines linking you to hostile neighbours will be a thing of the past,' said Ursula von der Leyen, European Commission president. What are the concerns going forward? Authorities have warned of potential risks, including sabotage, cyberattacks and disinformation campaigns. 'Various short-term risks are possible, such as kinetic operations against critical infrastructure, cyberattacks and disinformation campaigns,' Lithuania's state security department told the AFP news agency. The Baltic Sea region is on high alert following power cable, telecom and gas pipeline outages between the Baltics and Sweden or Finland. All were believed to have been caused by ships dragging anchors along the seabed following Russia's invasion of Ukraine. Russia has denied any involvement. 'Recent incidents involving undersea infrastructure in the Baltic Sea provide a matter of great concern. And a call for resolute action,' said Lithuanian President Nausda. Poland and the Baltics deployed navy assets, elite police units and helicopters to monitor the area after an undersea power link from Finland to Estonia was damaged in December, while Lithuania's military began drills to protect the overland connection to Poland. Analysts say any further damage to links could push power prices in the Baltics to levels not seen since the invasion of Ukraine, when energy prices soared. Poland's power grid operator PSE said it will use helicopters and drones to patrol the connection with Lithuania.

Moscow comments on Baltic states' switch from ex-Soviet grid
Moscow comments on Baltic states' switch from ex-Soviet grid

Russia Today

time08-02-2025

  • Business
  • Russia Today

Moscow comments on Baltic states' switch from ex-Soviet grid

The decision of Baltic nations to disconnect themselves from the unified energy system with Russia and Belarus will only worsen the economic prospects for the EU, the Russian Mission to the bloc has said, stressing that the move is politically motivated. Estonia, Latvia, and Lithuania, which are all members of NATO and the EU, began the two-day process of unplugging from the BRELL Energy Ring on Saturday. They will then join the alternative European power grid, known as ENTSO-E. The step is part of EU nations' effort to cut long-standing energy links with Russia. 'Disconnecting from the BRELL is a politically motivated move that will drive up regional electricity prices, make power grids less reliable, and further erode the EU's economic competitiveness,' the mission said on Telegram on Saturday, emphasizing that European households and businesses, primarily in the Baltic countries, will bear the costs. The mission stressed that the EU economy demonstrated 'meager' growth of only 0.8% last year, and highlighted that the continued drive to break energy ties with Moscow would only worsen its prospects. READ MORE: EU state warns citizens to stock up on food and water The three ex-Soviet republics decided to disconnect from BRELL and join ENTSO-E back in 2018. This month they plan to test their power grids in isolation before connecting to the EU energy system via Poland. Built on the existing interconnected Soviet-era power systems, the BRELL energy ring was established on 7 February 2001. It synchronized the power systems of Belarus, Russia, Estonia, Latvia, and Lithuania under Moscow's central dispatch. Initially, the Baltics depended on Russia for grid stability, while Russia relied on them to power its exclave of Kaliningrad. Russia has since upgraded energy infrastructure in Kaliningrad, reducing its reliance on the Baltic grid. Authorities in the three states have repeatedly claimed that reliance on the network controlled by Russia jeopardizes their energy security, believing that Moscow could weaponize the electricity supply and sever them from the network on a unilateral basis. Such fears have never materialized. Controlled by the state, Russian electricity prices are currently among the lowest in the world, averaging around $0.055 per kWh for consumers in 2024. Power prices in the EU vary from nation to nation, with Germany having the highest price per kWh last year at €0.3951 ($0.40).

Baltic states cut last Russian energy link
Baltic states cut last Russian energy link

Al Jazeera

time08-02-2025

  • Politics
  • Al Jazeera

Baltic states cut last Russian energy link

The three Baltic states have cut links with Russia's power grid as part of an energy security plan that will see them integrate with the European Union network. The grid operators in Estonia, Latvia and Lithuania announced on Saturday morning that they have uncoupled their electricity systems from the BRELL network, which includes Russia and Belarus. The move comes as the three former Soviet states warily eye Moscow's aggression in Ukraine. 'We are now removing Russia's ability to use the electricity system as a tool of geopolitical blackmail,' Lithuanian Energy Minister Zygimantas Vaiciunas said. The three countries will operate in 'isolated mode' for about 24 hours before synchronising with the EU grid via Poland on Sunday. 'We need to carry out some tests to assure Europe that we are a stable energy system,' said Rokas Masiulis, head of Lithuanian state-run grid operator Litgrid, which was the first of the Baltics to switch off from the Russian grid at 7:43am (05:43 GMT). The longstanding plan to integrate with the European grid gained momentum following Moscow's annexation of Crimea in 2014 and was accelerated by Russia's invasion of Ukraine in 2022, and the leveraging of its role as a major supplier of oil, gas and power to cause an energy crunch in Europe. More recently, there has been a spate of suspected sabotage incidents in the Baltic Sea in which vital infrastructure, including power and gas, have been affected. The former Soviet states, which joined the EU and NATO in 2004, were viewed as an 'energy island' within the European bloc, but have been working hard to connect their systems. They were quick to stop purchasing Russian energy after the war broke out in Ukraine, but their power grids were still connected to Russia and Belarus on a network controlled from Moscow. EU foreign policy chief Kaja Kallas – Estonia's former prime minister – called the move 'a victory for freedom and European unity,' and official celebrations are planned across the Baltics. However, authorities have warned of potential risks, including sabotage, cyberattacks and disinformation campaigns. 'Various short-term risks are possible, such as kinetic operations against critical infrastructure, cyberattacks and disinformation campaigns,' Lithuania's state security department told AFP news agency. Poland's power grid operator PSE said it will use helicopters and drones to patrol the connection with Lithuania. Latvian President Edgars Rinkevics told state-owned TV station LTV1 that 'possible provocations' could not be ruled out. An army truck was seen at the Rezekne power substation near the Latvia-Russia border, and armed officers were patrolling the vicinity. Authorities were keen to stress, however, after the switch that all was working well. 'The system is stable, the process is happening smoothly, no one is noticing that something changed,' Latvian Energy Minister Kaspars Melnis told Reuters news agency.

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