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Latvia’s TSO to invest EUR405 million in grid development by 2030 [free access]

July 2, 2020

Latvia’s transmission system operator (TSO), Augstsprieguma Tikls (AST), is planning to invest EUR405 million in grid development during 2021-30, as per its submission to the Sabiedrisko pakalpojumu regulēšanas komisija (SPRK) or the Public Utilities Commission (PUC) for approval.

 

According to AST, the significant investments are associated with the Baltic grid synchronisation project network with the continental European network in 2025. Phase 1 of the synchronisation project entails the expansion of two existing cross-border links with Estonia, namely, Valmiera (Latvia)–Tartu (Estonia) and Valmiera–Tsirugilina (Estonia). For these two projects, AST has secured European Union (EU) co-financing from the Connecting Europe Facility (CEF), amounting to 75 per cent of the total costs of EUR76 million.

 

Phase II of the bigger synchronisation project includes the synchronous condensers, reinforcement of the national grids, and the upgrade of information technology (IT) control systems. At present, AST and the other two Baltic TSOs—Estonia’s Elering and Lithuania’s Litgrid—together with Poland’s TSO, Polskie Sieci Elektroenergetyczne (PSE), have submitted a EUR1.2 billion joint application to the CEF for financial support for the same. In Latvia, EUR99.5 million of total costs are estimated, of which the power operator is seeking co-financing of 75 per cent from the EU.

 

Under the plan, AST will undertake investments to upgrade the national transmissions network, to ensure stable operation of the transmissions system and uninterrupted supply of electricity. For this, it plans the reconstruction of the 330 kV and 110 kV substation and transmission points, 330 kV and 110 kV lines, as well as replacement of the 330 kV autotransformers and 110 kV transformers. In total, AST plans to invest EUR228 million in these projects by 2030.

 

The regulator will now hold a hearing on July 17, 2020, to solicit the views of market participants on the development plan.

 

(EUR1=USD1.126)