Elering files application for financing first stage of synchronization investments

On Wednesday, Elering and the Latvian and Lithuanian TSOs filed a financing application with the European Commission for funding the first stage of investments for synchronizing the Baltic electricity systems with continental European frequency area.

The synchronization project investments are divided into three stages. In the first stage of the project, Estonia, Latvia and Lithuanian will first reinforce their domestic transmission systems. In Estonia, most of the investment volume in the first stage will be spent on 330-kilovolt transmission lines running from the Narva area to Latvia via Valga. The estimated total investment volume in the first stage is 187.7 million euros.

The chairman of the Elering management board Taavi Veskimägi said the renovation of transmission lines nearing the end of their useful service life will help to strengthen the Baltic states’ north-south power network. “Connecting to the continental European electricity system with co-financing from the European Union being sought should mean lower network fees for Estonia consumers than they would pay if the current situation continued. The investments in question should be made into modernizing the Estonian electricity system anyway if we continue as a part of the Russian electrical system,” said Veskimägi.

During the project, Elering will renovate the 330-kilovolt Baltic-Tartu, Tartu-Valmiera and Viru-Tsirguliina overhead lines. Control systems will be upgraded and new voltage stabilization equipment will be installed. The renovation of the lines will increase the transmission capacity between Estonia and Latvia by 700 MW.

The decision on project financing is expected to be made by the European Commission in 2019. The procurements for the renovation of the lines are set to begin in 2020 and construction activity will start in 2021. The works must be completed such that the Baltic states can synchronize their power systems with the continental Europe frequency area in 2025.

The second stage of investments for synchronization include funding necessary for maintaining the frequency, and the third stage consists of investments to be agreed upon as the project proceeds, including investments needed to connecting the Lithuanian and Polish grids.

The TSOs of the Baltic states Elering, AST and Litgrid filed an application for connecting power grids to the continental European frequency area in September. A working group at ENTSO-E, the pan-European TSO network, accepted the application into proceedings this week. It is planned to conclude the agreement specifying technical details of synchronization in the first half of next year.