Polish-Lithuanian energy grid and privatization offer rejected by PSE

Lithuania, which is interested in constructing a power bridge between its system and Poland's, is trying to tempt Polish energy companies with an offer to allow them to take part in privatizing its energy sector. "From our calculations, it turns out that the return from the power bridge are too low for us to undertake it on our own. Constructing the connection systems alone would cost about EUR430 million. Moreover, an additional EUR100 million would have to be invested on the Polish side of the border. It could only be accomplished with the use of EU funds," said Jan Kowalczyk, deputy president of the National Grid (PSE). PSE will probably not use the opportunity of acquiring Lithuanian energy distributors VST and RST, but its subsidiary, PSE Electra, may make this move as a minority investor. "The investment bank which came to us with the original offer might still be able to find a strategic investor, maybe even among Polish companies," said Kowalczyk. (Puls Biznesu, pp. 1, 8) M.M.