NIB President: Baltic Sea region needs a common energy market

“To deal with the increasing energy deficit, the Baltic Sea region needs a common, well-integrated energy market,” said NIB President Johnny Åkerholm at the Regional Conference on Baltic Energy Market Interconnection Plan in Vilnius on 25 November 2009.

Mr Åkerholm pointed out that the Baltic Sea region in general and the Baltic countries in particular will face an increasing energy deficit in the coming years. One of the main challenges in making policies that have regional significance is that despite the efforts and common policies developed and agreed on within the EU, decisions continue to be national.

“There is no common view around the Baltic Sea on future energy sources, prices on energy and emissions or support schemes for “uneconomical” production forms. The use of resources within the Baltic Sea region is not being coordinated. The allocation of finances for the renewable energy forms is increasingly difficult,” said Mr Åkerholm.

As a possible solution to these challenges, the NIB President suggested a well-integrated market for the whole Baltic Sea region, including Norway.

“A regional market would increase energy security. It would increase the possibilities to develop renewable energy, as backups will be more readily available. The countries of the region would develop unified support schemes and best practices for energy saving,” said Mr Åkerholm.

He emphasised the need for long-term investments, which are in a short supply after the financial crisis.

“Large energy companies can issue debt papers. EU support would provide incentives and help raise funds for cross-border investments. The rest of the market would get access to long-term funds only with the help of international financial institutions, such as NIB,” he said.

NIB’s special environmental lending facility, CLEERE, amounting to EUR 1 billion, has been utilised at 78% since it was launched in early 2008.