About energy independence...
Energy is not just a commodity. It is about strategy and security. It also about money, employment, and votes.
On Wednesday, Poland and Lithuania national grids announced their interconnection. Although the capacity for electricity trading between the two countries is still very modest, the LitPol Link is part of a greater strategic vision.
Inheriting the Soviet era grid, the Baltic States were isolated from the rest of Europe for decades and were often reliant on Russia for electricity supply over and beyond oil and gas dependence. LitPol thus makes part of the “Baltic Ring” that will regionalize power supply in the three EU member states and former Soviet Republics, reducing their reliance to Russia. Lithuania will also connect to the Swedish grid before year’s end.
The three small Baltic states are moving to gradually decouple their energy sector from Russia, a move they consider a strategic priority. As the tree tiny economies were considered “energy islands” in the midst of a European market, the EU has approved a total of €440 million in loans to be invested in the region’s grid by 2020, beginning with a modest €27.4 million. The idea is to create a regional Baltic component of the “Energy Union,” hedging reliance on Russia.
Poland in turn is increasing its grid capacity to import energy from the EU. Electricity imports cover barely 2% of the country’s needs. The national grid is ageing and in immediate need of modernization, as it is becoming a liability for its major industrial complex, especially during the summer.
One question: since one leaves behind Soviet infrastructure, would it be reasonable to assume one leaves behind environmental standards of that era too? Not necessarily.
Poland can live with the European Union’s position on reducing greenhouse gases. But, such a deal “must not hurt Poland,” according to AP. According to Eurocoal, a lobby group, Poland is considered the voice of coal in Europe. Coal is a strategic asset that will continue to play a central role for the country’s energy mix for 15 years at least. For some analysts in Brussels, it is clear that Poland is not going to Paris simply to join the consensus. The Polish position is one of gradual reduction of CO2 emissions, with the operative word here being "gradual."
And here is how life is crazy some times.
Poland is one of the biggest producers and consumers of coal in the EU 28, generating 80% of its electricity from the black staff. Being the world’s eighth largest producer of coal, Warsaw also has to consider the 100,000 jobs at stake. In fact, this is one of the few policy area in which Warsaw may have common interests with... oh, yes, Russia.