Caspian Energy (CE): Latvia, the Baltic States and the EU have a common energy policy, what is its peculiarity in Latvia and what does it have in common with the EU as a whole?

Kaspars Melnis, Minister for Climate and Energy of the Republic of Latvia: One of the most important features of Latvian (and Baltic) energy markets in the context of the EU energy policy is related that historically energy systems and policy planning (power grid, natural gas network, as well heating systems) were not integrated with the European Union countries and were operated in line with different principles.

For example, the power grid and natural gas transmission network were built as a part of the united grids of the former Soviet Union and thus until relatively recent history there were no physical connections with neighboring countries other than Russia and Belarus. Thus, to become a fully integrated participant of the Common European energy market, Latvia and other Baltic countries had to build new power and natural gas infrastructure, and adapt to new, more liberalized market rules.

In principle the energy market of Latvia and other Baltic countries operates quite similarly to that of the rest of the European Union, with the exception of the fact, that in power sector the systems of Baltic countries do not operate in synchronous mode with European or Scandinavian countries, but until early 2025 will continue parallel operation with grid of Russia and Belarus.

After successful disconnection from BRELL grid, and start of synchronous operation of grids, Baltic countries will become fully integrated with European Union energy markets. In the heating sector Latvia and Baltic countries are different from many other European countries with the fact that Baltic countries have relatively large centralized heating systems, which we consider an advantage.

Read the full interview of the Latvian minister in the upcoming issue of the Caspian Energy journal.