Energy, Energy Market, Estonia, EU – Baltic States, Financial Services, Good for Business
International Internet Magazine. Baltic States news & analytics
Friday, 19.04.2024, 11:59
Estonia's Elering to get EUR 141 mln for synchronization from CEF
Print version |
|---|
Estonia plans to invest approximately 188 million euros in total in the first stage of the synchronization, which means that the CEF support covers the maximum 75 percent of planned costs, Elering said. This decision ensures that the synchronization will not bring with it an increase in network fees for consumers in Estonia when the country decouples itself from the power system of Russia.
The CEO of Elering, Taavi Veskimagi, said the decision of CEF demonstrates the significance of the synchronization project for the energy security of the European Union and the quality of the financing application, as 75 percent is the highest possible rate of support.
Veskimagi expressed his gratitude to Elering employees and his Baltic colleagues for preparing the financing application and to officials at the ENTSO-E association of European transmission system operators and the European Commission for supporting the project.
The works to be performed as part of the first phase of the synchronization investments include works in the territory of Estonia to reconstruct 330 kilovolt overhead power lines starting in the Narva area and heading to Latvia near Valga, as well as install voltage regulating equipment.
The portion of costs not covered by CEF support, 47 mln euros, will be paid by Elering. The company already possesses that money, earned through auctioning of cross-border transmission capacities.
Without desynchronization, Elering would have to invest at least 222 mln euros in the reconstruction of the transmission network over the next decade.
"In view of today's decision, we can be quite sure that the synchronization project will reduce network fees for Estonian electricity consumers compared with a situation if Estonia were to continue as part of the electricity system of Russia and we would have to finance all investments from the transmission tariff," Veskimagi said.
The goal of the Baltic countries is to synchronize their electricity network with that of Continental Europe by the end of 2025.
«The Baltic Course» Is Sold and Stays in Business!
