MoU signed between Estonia and Latvia to build a new electricity line

Estonian transmission system operator Elering, Latvian independent system operator AST and Latvian transmission system owner LET signed on 21st of February a memorandum of understanding in order to agree on the next steps for developing the third electrical interconnection between Estonia and Latvia.

The third electrical interconnection between Estonia and Latvia will be giving socio-economic benefit for the whole Baltic Sea region electricity market reaching from Nordic countries to central Europe, especially when Estlink 2 and NordBalt cables will be in place. The construction of this power line is also an important part of Baltic Energy Market Interconnection Plan which has an aim to connect Baltic countries to European electricity markets and Pan-European Ten Year Network Development Plan.

New 3rd Estonia –Latvia 330kV interconnection with connection points at Kilingi-Nomme (Estonia) and in Riga (Latvia) that was selected as the most optimal route will provide increase of transfer capacity by 500-600MW. Planned route is 11% in Estonian territory and 89% is in Latvia.

According to the MoU all involved parties shall make an effort to go through all the phases of power line construction with a target to commission the line by year 2020. At the first stage the preparatory works will start which include the right of way preparations (RoW) and environmental impact assessment (EIA) of the future power line.

Taking into account importance of this Project for whole Baltic region, companies involved are hoping for financial support from European Union funds. It is agreed in the MoU that as the first stage of this Project AST and LET will apply for TEN-E co-financing for RoW and EIA and in case of grant acceptance all companies involved starting from 2013 will perform actions mentioned above with intention to finish in 2014. Elering will use own funds for this purpose. In case RoW and EIA results will not show any obstacles and after the EU co-financing decision has been received further detailed steps of this Project will be agreed between parties.