Elering and VKG Elektrivõrgud commence to study optimization of power grid in Ida-Viru County

The Estonian transmission system operator Elering and the Ida-Viru County-based distribution grid company VKG Elektrivõrgud on Friday entered into an agreement for joint planning of networks for the purpose of studying ways of optimizing the power grid, alongside with other activities.

The purpose of the cooperation is to increase the security of supply in the region and also to optimize the existing grid to ensure lower long-term investment and maintenance costs.

According to the Elering management board chairman Taavi Veskimägi, it may prove useful to reduce the number of lines substations in former mining regions, where power consumption has fallen off sharply following the cessation of mining. “At the same time, the rapidly developing Sillamäe region requires a stronger power grid. As specific activities, Elering plans to strengthen the security of supply of Allika substation in the Sillamäe industrial region,“ noted Veskimägi.

“The value of the cooperation agreement and the development plans to be drafted lies in the approaching the investment decisions integrally and with the long perspective in mind,” said member of the management board of VKG Elektrivõrgud OÜ, Ivo Järvala. “For the end consumer, cooperation means security of supply and optimum network fees,” Järvala added.

The agreement is entered into without a term and the first joint regional development plans should be ready by spring 2020.

Elering is the Estonian TSO, tying the electrical system of producers, distribution grids and major consumers into one whole. The transmission system operated by Elering consists of close to 5,500 km of high-voltage lines and 150 substations. Among others, Elering also operates external power connections with Finland, Latvia and Russia.

VKG Elektrivõrgud, which provides electricity distribution service, operates in the cities of Narva, Narva-Jõesuu and Sillamäe. The company administers 930 km of 0.4-110-kilovolt power grid and 370 substations. The company has a total of around 33,000 customers and the annual network service volume is around 240 gigawatt-hours. VKG Elektrivõrgud is among the top three Estonian distribution grid companies in terms of sale volume.