SWEDEN PUSHES GREATER ENERGY SECURITY FOR BALTIC

UNCLAS STOCKHOLM 000262 SIPDIS STATE FOR EUR/NB (AMELTZER),EUR/ERA (EMCCONAHA) E.O. 12958: N/A TAGS: PREL PGOV ECON ENRG LG LH PL RS FI SW SUBJECT: SWEDEN PUSHES GREATER ENERGY SECURITY FOR BALTIC COUNTRIES REF: A. STATE 38591 ¶B. 08 STOCKHOLM 857 ¶1. (SBU) Summary: Bo Diczfalusy, Director-General for Energy at the Ministry of Enterprise, Energy and Transportation, and MFA Baltic Desk Officer Isabella Torngren, told Econoffs on April 27 that Sweden: - views energy security as a key part of its EU Presidency focus on the Baltic Sea Strategy; - concurs with the U.S. that the Baltics need to cooperate more closely; - is pleased that the EU and the Baltic countries will fund Swedlink, a 700-1,000 MW undersea electricity cable, that will go to Lithuania, but be available for all three Baltic countries. End Summary. ¶2. (SBU) On April 27, Econoff discussed reftel points regarding greater Baltic energy security with Bo Diczfalusy, Director-General for Energy at the Ministry of Enterprise, Energy and Transportation, and MFA Baltic Desk Officer Isabella Torngren. Diczfalusy told us that Sweden shares the U.S. view that energy security is a major challenge for the Baltic countries. Torngren added that Sweden "couldn't agree more" with the U.S. position that the Baltics need to cooperate more closely. ¶3. (SBU) Diczfalusy commented that Sweden's general policy is to support countries to choose their own energy options as long as they follow prudent security guidelines, adding that if asked Sweden would provide assistance in helping to determine these guidelines. Torngren pointed out that Baltic energy security will form a key part of Sweden's Baltic Sea Strategy when it assumes the EU Presidency July 1 (reftel B). The three Baltics states of Estonia, Latvia, and Lithuania agreed April 27 that the long-discussed "Swedlink" high voltage cable will make landfall in Lithuania, linking their electricity grid to Sweden. ¶4. (SBU) The new Swedlink cable will provide an estimated 700-1,000 Megawatts and will run from Sweden to Lithuania. Both Diczfalusy and Torngren said one of the preconditions for establishing Swedlink is an open energy market with equal access for all three Baltic countries. Diczfalusy said the EU would fund approximately one-third of the estimated Euro 1.6 billion cost of the project, and that estimated completion of the project is 2016. SILVERMAN