USG HELPS BALTIC STATES FIND THEIR WAY TO CLEAN AND GREEN

UNCLAS TALLINN 000384 SIPDIS DEPARTMENT FOR S/CIEA DEPARTMENT FOR S/SECC DEPARTMENT FOR S/EEE DEPARTMENT FOR EEB/ESC DEPARTMENT FOR EEB/CBA DEPARTMENT FOR EUR/ERA DEPARTMENT FOR EUR/NB COMMERCE FOR ITA/DERSTINE ENERGY FOR PI/APICELLI E.O. 12958: N/A TAGS: ENRG ECON PGOV EINV EN SUBJECT: USG HELPS BALTIC STATES FIND THEIR WAY TO CLEAN AND GREEN ENERGY ¶1. (SBU) SUMMARY: Post and the Department of Energy organized the Baltic Clean and Green Energy Conference October 14-15 in Tallinn. The conference brought together more than 150 high level policymakers, energy technology experts, and industry leaders from around the region. The discussions focused on leading-edge clean energy technologies, country-specific opportunities for diversification of energy resources and energy efficiency. On the sidelines of the conference, GE Energy's regional representative noted he does not believe Estonia will go through with building its own nuclear reactor, as the market is too small. GOE officials stated their appreciation for the cooperation from the USG and would like to follow up on the conference's success with a meeting, "perhaps in Latvia or Lithuania, since they need more help than us." END SUMMARY. PRIME MINISTERS HIGHLIGHT THE IMPORTANCE OF CLEAN ENERGY -------------- -------------- ¶2. (U) Estonian Prime Minister Andrus Ansip and Latvian Prime Minister Valdis Dombrovskis opened the conference by highlighting the progress the two countries have made in developing renewable energy and their plans for the future. PM Ansip underlined in his speech the importance of new energy technologies in creating sustainable economic growth and stated he looked forward to U.S.-Estonian cooperation on oil shale technology. He also discussed Estonia's plans to take part in the Lithuanian Visaginas nuclear power plant project, while analyzing the possibility of building a reactor in Estonia as well. ¶3. (U) PM Dombrovskis noted that Latvia has the highest usage of renewable energy in the EU and is committed to raising that share from one-third currently to 40 percent by 2020. The Latvian PM stressed that international cooperation on energy technology and policy is essential to reach a climate change agreement and that energy will be a top priority when Latvia chairs the Baltic Council of Ministers in 2010. ¶4. (U) The U.S. delegation was led by DOE Deputy Assistant Secretary Alan Hegburg who highlighted U.S. views on global energy challenges. Other USG participants included representatives from the Pacific Northwest National Laboratory, Oak Ridge National Laboratory, OPIC, the Department of Commerce and USTDA. Other speakers included KPMG, AES, Foster Wheeler, GE Energy, the EBRD, Swedish Energy Agency, Riga Technical University, Estonian Parliament and the Swedish Ministry of Foreign Affairs. The first day presentations mostly concerned finding suitable renewable energy technologies for the Baltic countries, especially in wind power and biomass, and on energy efficiency issues. The second day provided an overview of financing possibilities for clean energy projects and also touched on nuclear energy options in the Baltic area. The conference concluded with interactive break-out sessions to strategize sustainable energy futures in each of the Baltic states. GE: ESTONIAN MARKET TOO SMALL FOR NUCLEAR POWER -------------- -- ¶5. (SBU) After giving a presentation on GE's renewable and clean energy activities, Ziemowit Iwanski, Central and Eastern Europe Country Executive for GE Energy, privately told EmbOffs that it is not feasible for Estonia to have its own nuclear plant as the market is too small, the cost will be too high and there is no existing know-how. However, the visit of GE Energy representatives to Estonia did generate media interest, particularly the statement by the head of GE Energy's Eastern European sales that the company is looking to enter the wind park market in Estonia and is planning to sign the first contract in a year's time. Westinghouse, which has been working closely with the state-owned power company Eesti Energia on nuclear power issues, was invited but did not attend the conference. FEEDBACK, FOLLOW-UP AND THANKS -------------- ¶6. (U) Post received considerable appreciation for the conference from the GOE, NGOs and other embassies. Einari Kisel, Deputy Secretary General for Energy Policy in the Ministry of Economic and Communications Affairs, praised the conference as a "very valuable event" and suggested there should be a follow up meeting, "maybe in Latvia or Lithuania, since they need more help than us." Additionally, the Danish Embassy used the conference to make contacts and develop ideas for their November 11 renewable energy conference in Tallinn. ¶7. (U) Post thanks DOE for putting together a very informative conference program with high-level speakers. Post also would like to thank counterparts in neighboring countries for developing invitee lists and promoting the conference outside of Estonia. DECKER