Lithuania and Poland to sign energy link accord Tuesday

Vilnius - Lithuania and Poland are expected to sign an agreement on Tuesday in Warsaw forming a joint company that would build a crucial energy link between two countries, the Lithuanian Economics Ministry said Monday. The two national companies - Lithuania's Lietuvos Energia and Poland's Polska Grupa Energetyczna - are expected to sign the agreement to build a 250 million-euro (362-million-dollar) link connecting Lithuania's electric grid to the European Union through Poland to offset the Baltic region's reliance on Russian energy. The linkup is an important part of the Poland's participation in the construction of a new Ignalina nuclear power plant. Lithuania and Poland want to build it together with the two other Baltic EU members, Latvia and Estonia. Long delays plagued the signing of the bilateral agreement. Four months ago, Lithuanian President Valdas Adamkus said the agreement would be signed "within days," but later he cited technical problems as holding up a final deal. Poland demanded one-third of the new Ignalina power plant's capacity, even though it is one of the four participating countries, which has been the cornerstone of the negotiations. Lithuania is hoping to connect its electrical grid with the EU via Poland to shield it from an electricity shortfall when Lithuania closes the existing Ignalina nuclear power plant at the end of 2009, as part of its membership agreement with the EU. In recent weeks, Lithuanian Prime Minister Gediminas Kirkilas indicated his country may ask Brussels to extend the life of the Ignalina plant.
Source: earthtimes.org