EU approval for new Latvian thermal power plant welcomed

New plant will significantly reduce dependence on Russia

Brussels, 1st February 2010

Brussels, 1st February 2010 -- The EU's approval of state support to a new thermal power plant in Latvia has been welcomed by Roberts Zile, Latvian MEP from the European Conservatives and Reformists group, as a move that will significantly reduce the Baltic region's dependence on Russia for electricity supplies.

The commission has given the go-ahead for Latvia to provide aid for the development of a new power plant, which is likely to be powered by LNG regasified in Latvia or on solid fuel such as coal, lignite or peat mixed with at least 10% biomass. Competition Commissioner Neelie Kroes argued that the exceptional circumstances in Latvia meant the proposal could go ahead without leading to distortions of competition.

Mr Zile, whose TB/LNNK Party was a strong proponent of the new plant in Latvia's governing coalition, said that the move - combined with other measures such as electricity interconnectors with Sweden - would help secure the Baltic's electricity supply, which is already heavily based on renewable energy sources.

Mr Zile said:

"The initiative, fully supported by the TB/LNNK party as part of the governing coalition, is crucial if we are to ensure Latvia will be insulated from Moscow's use of energy as a political tool.

"Latvia's electricity production is largely based on renewable sources such as hydro, which often leads to seasonal shortages. We also produce some electricity from gas, and we purchase some electricity from Russia, leaving us vulnerable.

"With the closure of the Ignalina nuclear plant this year we need a thermal power plant to secure our energy supplies. Combined with the electricity interconnectors between Sweden and the Baltic that were proposed as part of the EU's economic recovery plan, we will have a much greater sense of security.

"A number of potential investors have been waiting for this decision, which has been a long time coming for Latvia. Now that we have the green light from the commission, I hope that we can get this plant up and running at the earliest opportunity."

ENDS

Contact:

Roberts Zile on +32 228 45224

ECR Press Office - James Holtum on +32 473 861762

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