WORLDWIDE MARKET RESEARCH REPORT - CISE

EC/IST FP6 Project No 026920
Work Package: 6
Type of document: Report
Date: 20.12.2007
File name: OP_WP6_D37_V1.0.doc Version: 1.0
Title: Worldwide Market Research Report 118 / 356
Lithuania
Lithuania was in the midst of constructing a power line to supply electrical exports to the
West. Some 13% of the electricity came from fossil fuels and 4.3% came from hydroelectric
sources, but the overwhelming majority, 82.61%, came from nuclear power plants.
Lithuania's energy sector needs modernization as well. Post-Soviet Russia's supply network
is unreliable and subject to political manipulations resulting in cuts of oil to Lithuania. The
opening of the Butinge oil terminal on the Baltic Sea in 1999 allows Lithuania to diversify its
supply of crude oil by sea. Currently, the nation has about 10 million barrels of proven oil
reserves. Other sources of power, such as Ignalina nuclear power plant (of the Chernobyl
type), are controversial for safety reasons. Electric power generation needs to be
modernized and privatized, while new and profitable supply networks to Western Europe via
Poland need to be established. Lithuania's power complex experiences substantial problems
with generation, distribution, and sales. The capacity in the system is about 2 to 3 times
higher than the national demand for power generation and gas distribution. As a result of
inherited Soviet-style inefficiencies, losses amounted to about one-third of supply and were
made worse by non-payment of debts by some clients, for example, in Belarus.
Macedonia
Macedonia has only 10 kilometers of oil and gas pipelines. The energy sector is state-owned
and produced electricity in thermal plants (85.37%) and hydro-electric facilities (14.63%).
Privatization was planned for ESM, the national electric utility, and in September 2000 the
government began passing it into shareholder ownership.
Moldova
Moldova's electricity production is generated for the 93% in thermal plants and for the 7% in
hydropower facilities. Domestic sources account for 2% of primary energy supply. A large
gas power plant in Transnistria produces 85% of the electricity.
Moldova remains reliant on Russian gas, and Gazprom periodically cuts off supplies due to
chronic non-payment, as do Romania, Ukraine, and Transnistria for unpaid electricity.