Europe News
European Commission awards EUR100 million for Estlink2 [free access]
July 12, 2010The European Commission has given definitive approval to the proposal to extend EUR100 million for the construction of Estlink2, the second power cable link between Estonia and Finland.
The 650 MW undersea link is estimated to cost EUR320 million. With one-third of the cost being financed by EU, Finland’s grid operator Findgrid and Estonia’s high-voltage transmission operator Elering, will contribute equally to the remaining cost.
Estlink 2 will be a monopole line-commutated converter (LCC) 450 kV interconnection between Puessi, Estonia and Anttila, Finland. It includes 140 km of undersea cables, 11 km of underground cables in Estonia, and 14 km of overhead lines in Finland. The project also includes the reinforcement and renovation of 126 km of 330 kV AC lines in Pussi-Eesti and Pussi-Balti in Estonia.
In February 2010, the two TSOs signed a preliminary agreement for the project. Fingrid plans to sign deals with cable and other equipment suppliers by the end of 2010 and begin construction by mid-2011. The new cable is expected to be in operation in early 2014.
In April 2010, Elering applied to the European Investment Bank (EIB) for a EUR75 million loan to fund construction.
The new cable link will increase inter-regional transmission capacity between the two countries to nearly 1,000 MW. Estonia's and Finland's electricity grids are currently connected by the 350 MW Estlink 1 cable.
(EUR1 = USD1.26)