Construction, Energy, Estonia, EU – Baltic States, Financial Services

The first stage of the synchronization investments and the Balticconnector project decided upon earlier are unique in that they have been awarded cover for the maximum possible rate of 75 % of planned costs, Elering said.

"Over the past seven years, Elering and partners have raised some 560 mln euros of European Union funding for strategic energy projects. This amount comes in addition to the general package of support allocated to the Estonian state," Elering CEO Taavi Veskimagi said.

The financing agreement will enable Elering to announce already in the near future the first design procurement for the overhaul of 330 kilovolt overhead power lines starting in the Narva area and heading to Latvia near Valga. The first construction tender is expected to take place next year and construction activity will start in the winter of 2021.

As part of the project, Elering will reconstruct the Balti Power Plant-Tartu, Tartu-Valmiera and Viru-Tsirguliina 330 kilovolt overhead lines, overhaul control systems and install new voltage stabilization equipment, including the first synchronous compensator in Estonia. The overhaul will increase the throughput capacity between Estonia and Latvia by 700 megawatts.

Elering and the transmission system operators of Latvia and Lithuania, AST and Litgrid, are to invest some 430 mlns euros in total in the first stage of the synchronization projects, of which CEF financing will make up 323 mln euros. The Estonian part of the investment is 187 mln euros. The portion of costs not covered by CEF support will be paid by Elering using money earned through auctioning of cross-border transmission capacities. 

The goal of the Baltic countries is to synchronize their electricity network with that of Continental Europe by the end of 2025.