Warsaw, Poland, Jan. 9, 2007 – heads of the three Baltic power utilities met in Warsaw to meet and learn more about Polish energy company PSE (Polskie Sieci Elektroenergetyczne) and discuss possibilities on how to involve Poland into the nuclear project.

“After today’s meeting we have knowledge of the Polish energy company and a more clear perception of added value involved if Poland is to participate in the project,” commented the ended meeting Sandor Liive, Chairman of the Management Board of Eesti Energia. “Definitely, there are advantages of Polish participation in an already started nuclear project. Nevertheless, there are some conditions which have to be agreed upon with Poland,” added Liive.

“Nuclear project would benefit if the new plant would purvey electricity to a market bigger than the Baltic States,” said Liive. In order to successfully engage Poland into the project there has to be a guarantee that the missing power link between Lithuania and Poland will be built. It is also important to learn who could use such a connection. It is an understanding of Eesti Energia that a power connection must be built before 2012 and have an open accessibility, meaning all companies on a power market could use it. These are the main concerns to be talked over and agreed upon.

An important question that has to be resolved concerns the exact balance of PSE's ownership in the project. PSE’s interest to participate in the project is definitely different from the one of the Baltic States, who take the new nuclear plant as the key in ensuring the security of supply. On account of this, Eesti Energia finds that Baltic States should have a leading role in project development. The final shares allotment in the new nuclear plant depends on how much capacity the shareholders will keep for themselves and, therefore, can not be decided before the end of the construction procurement, which specifies cost of the reactors.

The participants have also confirmed that PSE involvement will bring about numerous practical questions. The expert group consisting of two representatives from each power utility was established today. This expert group received an assignment to investigate all possible conditions in regards to Polish participation in the project, which also includes preparation of contracts and schedule of Poland joining the Baltic States in the project.

In February last year, Prime Ministers of the three Baltic States signed a joint resolution, expressing their support in conducting a feasibility study and composing a common energy strategy of the three Baltic States. On March 8, 2006 Eesti Energia, Lietuvos Energija and Latvenergo signed a memorandum of understanding, by which it was decided to carry out a feasibility study on construction of a new nuclear reactor in Lithuania.

Additional information:
Iveri Marukashvili
Communications Specialist
Eesti Energia AS
Tel.: +372 71 51 218
GSM: + 372 53 411 813
E-mail: [email protected]