In 2006, to promote their mutual cooperation, Latvenergo AS Augstsprieguma tīkls, Pohivork AS from Estonia and Lietuvos energia AS from Lithuania established BALTSO, a non-profit cooperation organisation which will resolve the principle issues related to the parallel operations of the power systems in the Baltic States. To date several multilateral agreements have been signed by the energy power companies of the Baltic States regarding the parallel operations of power systems. Therefore, the founding of the BALTSO cooperation organisation is the result of long term cooperation.
In June and July of 2006, Latvenergo AS engaged in successful trading transactions selling greenhouse gas emission quotas worth EUR 16 million. The success of these transactions was due to the long-term investments made in Latvenergo AS combined heat and power plants resulting in improved technological processes and a reduced impact on the surrounding environment.
Latvenergo AS has surplus emission quotas to trade, because the company’s plants have a comparatively high power efficiency and low quantity of emissions, whereas the emission quantities of many companies exceed their allocated amount, as a result of which they are prepared to buy carbon dioxide emission quotas from others.
Latvenergo AS has two combined heat and power plants – TEC-1 and TEC-2 whose participation in the emission quota trading system (EU ETS) is compulsory and whose emissions are included in the emission quota distribution plan.
2006 saw the continuation of Latvenergo AS competition, “The Brightest Head.”
On 30-31 August 2006, a Latvenergo AS shareholders’ meeting accepted a decision made by the company’s management to establish Sadales tīkls AS, a joint stock company 100% owned by Latvenergo AS. The Electricity Market Law prescribes that from 1 July 2007, the distribution system operator shall be a separate capital company with the status of a permanent legal entity whose operations are separate from electricity generation, transmission and trading.
On 13 September 2006, a foundation stone marking the commencement of the reconstruction of Riga TEC-2 was laid at Acone in the district of Riga. The reconstruction of Latvenergo AS TEC-2 is the biggest industrial investment project since the restoration of Latvia’s independence and will reduce Latvia’s dependency on imported energy and increase the efficiency of energy production.
Over a two year period, Latvenergo AS and the Spanish company, Iberdrola are due to carry out the reconstruction of TEC-2 entailing the construction of a combined cycle power generating unit, equipment production and assembly, construction work, personnel training and a two year guarantee, as well as service maintenance for the station over a 12 year period. The construction of TEC-2 will cost EUR 177 million and servicing of the new power generating unit will cost EUR 95 million.
In 2008, Riga TEC-2 will be the most modern cogeneration heat and power plant in the Baltic region which will significantly increase Latvia’s power independence and provide quality energy for our clients.
In 2006, Latvenergo AS signed a contract with the Scandinavian electricity stock exchange, Nord Pool Spot AS. Latvenergo AS is the first power company from the Baltic States to become a direct member of the electricity stock exchange. At the Nord Pool Spot AS stock exchange, electricity is separately bought and sold every hour, and a new electricity price is formed every hour depending on the supply and demand for electricity.
On 4 December 2006, Tallinn hosted the formal opening ceremony for the Estlink sea cable – the first power connection between the Baltic States and Nordic countries. The Estlink sea cable, which was built in record fast time, connects the Harku 330 kV substation located outside Tallinn and the Espoo 440 kV substation just outside Helsinki.
The Estlink underwater cable is one of the European Union’s priority projects which will improve the infrastructure of trans-border connections, as well as create a much more efficient electricity market in Europe. It is the first joint project undertaken by power companies from the Baltic States and Scandinavia and it will cost EUR 110 million. The primary goal for the cable’s establishment was to ensure the transit of electricity from the Baltics to the Nordic countries. The project is also significant, because of the resultant improvement in the security and supply of the power system in the Baltic States. Estlink provides electricity trading opportunities, as well as the opportunity to acquire electricity from alternative sources of electricity, thus reducing the potential generating capacity deficit.
On 10 January 2007, a new Customer Assistance Centre (CAC) was opened in Liepaja at the Kurzeme Shopping Centre which marked a beginning of a year-long cycle of new centre openings.
On 17 January 2007, a new CAC was also opened in Riga at the IXO Shopping Centre, Anniņmuižas iela 17. This is the first CAC which is open every weekday from 09:00 – 19:00, and is thus even more accessible to clients.
From 17 January 2007, several branches of Latvijas Pasts VAS began to fulfil the functions have of the Sadales tīkls AS customer assistance centres. These provide customer assistance in cities such as Auce, Gulbene, Kandava, Saulkrasti, and Zilupe, etc. which do not have customer assistance centres.
On 26 January 2007, a new CAC was opened at Bērzpils iela 19 in Balvi which has retained its location but has now been adapted to the new customer assistance centre formation strategy.
On 29 January 2007, the transportation of the gas turbine and generator intended for TEC-2 took place. This large freight consignment was delivered using two different barges along the Daugava from the port to the wharf at Kengarags. During the night of 31 January, the gas turbine and generators were delivered to the TEC-2 territory.
