The Cornerstone was Laid for the Second Electricity Connection between Estonia and Finland

On November 16th the cornerstone for EstLink 2, the second electricity connection between Estonia and Finland, was laid at the Püssi substation. The new connection is expected to come into operation in early 2014 and will triple the capacity of the connection between the electricity systems of Estonia and the Nordic countries.

EstLink 2 is important both for the security of supply for Estonian consumers and for the efficient functioning of the electricity market. This will be particularly true after the market is opened fully at the beginning of 2013. Once building work for the connection is completed, it will be possible to speak of a single Baltic and Nordic electricity market which will allow efficient competition. For the consumers that means a wider choice of electricity sellers and for producers the access to trade in a much larger marketplace.

Taavi Veskimägi, the CEO of Elering said that EstLink 2 is a good example of a large-scale joint international project which will create new opportunities for electricity producers and consumers across the region and will increase competition in the regional electricity market. As the electricity market opens entirely it is especially important for Estonian consumers, because the open Estonian electricity market will be very concentrated on one single producer. “EstLink 2 is a very significant project for Estonian energy security and the development of the electricity market. Together with EstLink 1 it will give Estonia a connection of 1000 MW to the Nordic countries, which will guarantee us an alternative source of supply alongside our own producers and our connections to the other Baltic states and to Russia and Belarus. The total capacity of the two EstLinks should be enough for now to ensure unlimited transmission of electricity for sale and purchase between Estonia and Finland in almost all hours. This means that consumers will get the best price from the different electricity producers competing in the area,” Veskimägi added.

Jukka Ruusunen, CEO of Fingrid said that from 2014 the EstLink 2 connection will triple the amount of electricity being transmitted between Estonia and Finland and in this way have a major impact on the electricity market. “It is important to note that the amount of transmission capacity can play an important role in helping or hindering competition in the electricity market. If there are international connections that can allow the uninterrupted flow of electricity, then a much larger and more efficiently functioning electricity market can operate,” he said.

The total cost of the EstLink 2 project is around 320 million euros, which is being split equally between Elering and Fingrid, the Estonian and Finnish TSOs. The European Commission is also putting 100 million euros into the project.

So far, all the work on EstLink 2 has run to schedule. Preparation of the site at the Anttila substation and the Nikuviken cable terminal station on the Finnish side was completed this summer and construction and installation work has started in the substations on both the Finnish and Estonian sides and on the overhead lines in Finland. At the same time, the cable is being made and tested in Norway.

At the cornerstone laying ceremony, speeches were given by Juhan Parts, the Estonian Minister for Economic Affairs and Communication, Krista Kiuru, the Finnish Minister of Housing and Communications, Taavi Veskimägi the Elering CEO and Jukka Ruusunen, the CEO of Fingrid.

Elering is the Estonian Transmission System Operator, whose main duty is to ensure high-quality supplies of electricity to consumers at all times. To achieve security of supply, Elering maintains and develops the national transmission grid and international connections. Elering controls the Estonian electricity system in real time, ensuring the operation of the transmission network, and the balance between production and consumption.

More information about EstLink 2 can be found on the website estlink2.elering.ee.