Poland-Lithuania power bridge feasible only if EU covers 75% of costs - Finanse - Giełda - Wirtualna Polska

Poland-Lithuania power bridge feasible only if EU covers 75% of costs

Representatives from Polish national grid PSE and its Lithuanian counterpart Lietuvos Energija confirmed that a project to build a power bridge between the two countries is technically, economically and legally feasible, but only if 75% of the investment is financed using European Union funds, PSE stated Tuesday evening.

"Representatives of PSE and Lietuvos Energija signed a final document concerning feasibility studies to link the Polish and Lithuanian power systems," reads the statement. "[The document] confirms that the project is technically, economically and legally feasible if at least 75% of the costs of its realization are covered from European Union funds."

PSE CEO Pawel Urbanski said that realization of the project will allow Poland and Lithuania to integrate their power systems, thus increasing energy security.
"It will contribute to a strengthening of the energy security of our country," Urbanski said as quoted in the statement. "This is the way through which the energy from [nuclear power plant] Ignalina will flow [to Poland]. From the beginning we have been considering these two projects, the power bridge and nuclear power plant in Ingnalina, jointly."

Realization of the power link between the towns of Elk in Poland and Alitus in Lithuania includes construction of a 400kV transmission line of over 150 km.

According to preliminary estimates, the project will be completed in 2012 and will cost EUR 237 mln, of which Poland will pay EUR 71 mln and Lithuania EUR 166 mln.

The Elk-Alitus line is a missing part of the so-called Baltic ring linking the power systems of Poland, Lithuania, Latvia, Estonia, Finland and Sweden. The project is one of the priority projects of the European Union.


Source:
Agencja Informacyjna Interfax