Elering Signs Financing Agreement With European Commission For Third Estonian-Latvian Connection

Elering has signed a financing agreement worth 112 million euros with the European Commission to finance the construction of the third Estonian-Latvian electricity connection. Elering will cover its own contribution using profits from the Estonian-Latvian cross-border trading capacity auction, which has been quite controversial but has also been functioning well.

The third Estonian-Latvian connection will comprise 330kV high-voltage power lines from Harku to Sindi and from Kilingi-Nõmme to Riga. The European Commission is providing funding to the tune of 112 million euros.

The newest Estonian-Latvian connection received the highest rate of support in the latest round of financing for projects of common interest (PCI) in the field of European energy, decided upon August last year, with a 65% support rate. This demonstrates the necessity of the connection.

To cover its own contribution, Elering will use profits from the cross-border trading capacity auction, which have been accumulating in a special fund that is worth approximately 27 million euros. “This sum will cover the needed contribution from our side for the construction of the connection, and along with the support from the European Union, we will build a connection worth 172 million euros without increasing the pressure of higher network charges for consumers,” commented Chairman of the Elering Board, Taavi Veskimägi. “The construction of the third Estonian-Latvian connection is one of our priority projects in the development of the electricity network at the moment. In addition to the Estonian electricity system, the connection is also important for the further development of the whole unified electricity market in the Baltic countries and in the sense of joining the Continental Europe Synchronous Area,” added Veskimägi.

By now, the most recent discussions on the Harku-Sindi line in Harju and Pärnu counties for the third connection project between Estonia and Latvia have ended. The layout has been approved in Pärnu County, and by September the final route is expected to be determined in Harju County and also in Martna and Kullamaa Parishes in Lääne County. The layout of a line section running from Kilingi-Nõmme to the border with Latvia has already been approved and sent for review.

The next stage in the development of the project includes the organisation of procurements to find constructors for the Harku-Sindi and Kilingi-Nõmme-Latvia lines. Elering is planning to announce the tenders in September and December this year respectively.

The Harku-Sindi overhead line is expected to be about 170 kilometres long. Double-circuit or triple-circuit overhead transmission lines will be built on the route, where 330kV and 110kV power lines and optical ground wire will be installed on the joint pylons. A 14 kilometre-long high-voltage line will run from Kilingi-Nõmme to the Latvian border. The third Estonian-Latvian connection is expected to increase transmission capacity between the two countries by approximately 600 megawatts.