Synchronisation with Continental Europe

Until then, the Baltic States’ power system was part of Russia’s interconnected power system, which posed a geopolitical and energy security risk. This is because Russia controlled one of the most important parameters of our power system – frequency – and thus the eastern neighbour had the ability to influence the operation of the power system in the Baltic States.

 

Synchronisation Information Day 28 November 2024 

Why synchronise?

First, the transition to synchronous operation with the Continental Europe Synchronous Area mitigates the risk that dependence on the Russian energy system and frequency area could be used against us. Secondly, the Baltic States are politically and socio-economically part of Western Europe, so it is entirely logical that the power system is also part of the Continental Europe Synchronous Area. This will reduce the risks associated with system management and improve the energy security of Estonian people and companies.

In addition to energy security, Estonia’s greater connectivity will also improve the international competitiveness of its economy. During synchronisation, new markets and products will emerge alongside existing electricity markets, increasing the opportunities for local electricity producers to sell electricity.

How does synchronisation take place?

To mitigate risks and expand the market, we have taken steps over the years to disconnect the power systems of Estonia, Latvia, and Lithuania from Russia’s and connect to the Continental European electricity network and the corresponding frequency area by the beginning of 2025 at the latest. Synchronisation is a joint and extremely high priority effort for the three Baltic States and Poland.

For synchronisation, the Baltic States reinforced their electricity networks and connections. Elering reconstructed the powerful 330-kilovolt power lines that start in the Narva region and head to Latvia near Valga. Similar reinforcements were also made in the power systems of Latvia and Lithuania.

To ensure frequency stability, synchronous compensators that add inertia to the system are being built in all Baltic States, and the power system, IT systems, and control systems for existing direct current connections are being upgraded.

In addition to new infrastructure and systems, the synchronisation will improve the interoperability of the control centres of the Baltic States and add additional know-how for independent management of the electricity network.

Project financing

Synchronisation will cost the Baltic States and Poland a total of approximately 1.6 billion euros, of which Estonia’s share is 298 million euros. Investments are divided into three rounds and, due to the high priority set by the European Commission, the projects will be financed to a maximum of 75% from the Connecting Europe Facility (CEF) funds. The remaining 25% of the required investments will be covered by congestion charges in Estonia.

The total investment volume of the first financing round in the Baltic States was approximately 430 million euros. In Estonia, as part of the first round, domestic electricity networks were reconstructed, and one synchronous compensator was built. Similar to Estonia, domestic network connections were improved, and synchronous compensators are also being built in Latvia and Lithuania.

The volume of the second round of investments in the Baltic States and Poland was approximately 700 million euros, which included the construction of two synchronous compensators in Estonia. The investments finance the construction of synchronous compensators in the other Baltic States and the construction of a direct current connection between Lithuania and Poland, along with the necessary network reinforcements.

The total investment volume of the third round in the Baltic States and Poland was 230 million euros. In Estonia, the investment objects of the third round include upgrades to the IT, control and monitoring systems of the control centre, upgrades to the management and control systems of EstLink 1 and 2 submarine cables, and improvement of the operational continuity of substations. In the other Baltic States and Poland, third-round investments include reconstruction of high-voltage lines, further development of substations, construction of battery-based energy storage systems in Latvia, and upgrades to IT systems.

In Estonia, a total of approximately 30 investment projects are being financed as part of synchronisation.

See how the project was implemented over the years:

 

 

Synchronisation in brief:

 

 

Benefits for market participants

For electricity producers and traders, synchronisation opens up a larger and more flexible market, allowing them to offer new types of energy market products and services and expanding export potential. New markets are emerging alongside existing ones, increasing the opportunities for electricity producers to sell electricity. Since electricity trade with Russia and Belarus came to an end in 2022, access to new markets is also of crucial importance for market participants.

System operators bring new products to the electricity market, which give market participants the opportunity to offer new services. Such services include, for example, the frequency maintenance reserve service and the automatic frequency restoration reserve. System operators involve market participants in the launch of new products to meet their capabilities and expectations.

Benefits for the consumer

Synchronisation primarily ensures better security of supply for consumers, but also a sense of security that Estonia itself, not Russia, has control over the energy system. Additionally, European Union investments make it possible to reconstruct depreciated high-voltage lines without the need for additional funds that would mean an increase in network fees. The transition from one frequency area to another occurs unnoticed by the end user, and the quality and continuity of network service improves.

Environmental impact

Estonia has joined the goal of carbon neutrality, which aims to slow down global climate change. It is therefore unthinkable to invest in renewable energy in our country and at the same time consume electricity from third countries with unknown environmental impacts. Carbon emissions cannot be reduced if they are released into the air across borders. Synchronisation eliminates the risk of potential carbon leakage and improves the ability to generate electricity from renewable sources.

Preparedness for emergency synchronisation

The Baltic States and Poland have prepared for a situation where desynchronisation from Russia may occur exceptionally. To this end, Elering has agreed on specific activities and protocols with the system operators of the Baltic States and Poland on how to connect to the Continental Europe Synchronous Area as safely and quickly as possible. This ensures security of supply for consumers and protects the security and economic interests of the States.  In this case, the emergency synchronisation would take place within hours, unnoticed by the end consumer.

In simplified terms, the desynchronisation/synchronisation process is as follows:

• The Baltic States are desynchronised from the Russian and Belarussian frequency area (IPS/UPS), as a result of which the inertia and frequency of the Baltic States’ power system are no longer controlled from Russia.
• The Baltic States operate as an island, during which the necessary inertia is ensured by local capacities and resources.
• The Baltic States are synchronised with the Continental Europe Synchronous Area.

Elering is continuously working in cooperation with partners in Latvia, Lithuania and Poland to increase preparedness for emergency synchronisation. To this end, the following activities have been carried out:

• 400/330kV AC transformers have been installed at the Alytus substation in Lithuania, ensuring technical preparedness for emergency synchronisation via the LitPol link within a few hours.
• Agreements have been entered into with Nordic system operators to receive frequency support through direct current connections through the EstLink 1, EstLink 2 and NordBalt cables.
• Regular training of system operator control centres is being carried out for a situation where emergency desynchronisation occurs by Russia and Belarus.
• A legal and technical framework has been established for emergency synchronisation with Continental Europe.

Mitigation of risks

The probability and impact of possible risks materialising are continuously assessed at Elering in order to prevent and mitigate their negative impact on the activities necessary for synchronisation.