Swedish Prime Minister sees green energy as possible joint project with Finland

Sweden’s government not taking stand on Russian power cable application

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Sweden’s Prime Minister Göran Persson has proposed that Finland and Sweden join forces to promote "green energy" during Finland’s upcoming turn at the Presidency of the European Union.
      "Renewable bioenergy, green energy, could become a natural common profile project for Finland and Sweden", said Persson at a press conference of an industrial policy summit held in the Finnish city of Jyväskylä on Wednesday. He noted that both countries have extensive knowledge of the utilisation of the yield of forests and fields.
      Speaking alongside Finnish Prime Minister Matti Vanhanen (Centre), Persson said that he expects there to be much discussion about energy during the Finnish EU Presidency, because it appears that prices of oil, as well as other fuels, will remain high this year.
     
Persson did not take a stand on the proposed undersea power cable, which the Russian-owned United Power would like to set up from Russia to Finland.
      The question applies to Sweden in that the Swedish company BasEl, formed by a number of large industrial consumers of electricity, has drawn up an agreement with United Power, the company that is planning to set up the cable, even though an application for a licence to set up the cable is only under consideration by Finnish authorities.
      Fingrid, the company which runs the Finnish national electricity grid, is staunchly opposed to the move.
      When asked if he felt that it was strange that Swedish industry wants to buy electricity from Russia generated by nuclear power, when Sweden itself is committed to phasing out its nuclear installations, Persson said that it is natural for industries which consume large amounts of electricity to look for different sources of energy. The Swedish government is not taking a stand on the cable itself, but Persson feels that it is good, in principle, for there to be closer contacts between Russia and the Nordic Countries in different areas.
     
Persson says that the present Swedish government is serious about the development of new green energy sources. He says that he believes that the energy yield will be significant. He also said that Sweden would give up its present nuclear facilities only if alternate production is found to replace it.
      Prime Minister Vanhanen said that he had briefed Persson about aspects that the Finnish government is taking into consideration when considering the Russian cable application. Questions include the need for reserve power, the capacity of the national grid, and the reliability of the supply from Russia.
      Discussing energy questions in greater detail were the Finnish Minister for Trade and Industry Mauri Pekkarinen (Centre), Sweden’s Environment Minister Mona Sahlin and Sweden’s Minister of Industry and Trade Thomas Östros.
      The three complained about excessive centralisation and lack of competition the electricity market in the Nordic Countries. Both countries have initiated investigations into problems linked with competition.
      The Swedish ministers were not ready to split up the state-owned electric company Vattenfall, a move that has been called for by Swedish business. Östros says that Sweden needs the resources of Vattenfall in the development of new energy sources.


Previously in HS International Edition:
  Russian company sweetens offer for large undersea electric cable (20.4.2006)

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