Elering and 50Hertz explore possibilities to build a submarine electricity cable between Estonia and Germany

Today, Elering and the German transmission system operator 50Hertz signed a Memorandum of Understanding aimed at exploring the technical feasibility and cost-effectiveness of building an electricity interconnection of up to 2000 MW between the two countries.

Taavi Veskimägi, the CEO of Elering, says that Elering’s objective is to ensure the security of supply of energy for Estonian consumers in a climate neutral manner and therefore support the competitiveness of Estonian economy. “With the latter goal in mind, we want to find out whether a possible electricity connection between Estonia and Germany could increase the value of our maritime areas in a way that would benefit both the Estonian state and our people,” said Veskimägi.

“Estonia has significantly more resources to develop offshore wind farms than we need to ensure our own security of supply. Analyses will show us whether electricity interconnection with Germany, as a major consumption centre, will allow us to increase the export potential here without spending the money of Estonian consumers,” Veskimägi added.

If the joint impact assessments demonstrate the technical feasibility and cost-effectiveness of the Estonian-German Baltic WindConnector, Elering and 50Hertz will submit the project to the ten-year grid development plan to be prepared in cooperation with the European system operators, after which the project’s financing model and the sources of external financing can be identified.

According to Stefan Kapferer, CEO of the German transmission system operator 50Hertz, the Baltic Sea has a huge potential for offshore wind farms and, consequently, for transnational interconnections. “Cooperation with the Baltic States and stronger interconnections between the Baltic States and the electricity system of continental Europe will play an important role in achieving a climate-neutral Europe, as well as, of course, ensuring energy security,” said Kapferer. “The Baltic WindConnector is an important step on this path.”

A separate Memorandum of Understanding (MoU) was signed between Elering and 50Hertz and the Latvian and Lithuanian system operators, with the aim of jointly exploring ways to integrate the offshore potential of the Baltic States into the European energy system more generally and to support security of supply in the Baltic States.