Latvia’s power transmission system operator AS Augstsprieguma tikls (AST) plans to invest EUR 405 million in development in a ten-year period from 2021 to 2030, according to the development plan approved by the Public Utilities Commission (SPRK).
As reported by the company, the most considerable expenditures are associated with efforts to increase the transmission network’s transmission capacity and Baltic region’s energy supply safety all to implement the synchronization of Baltic States’ power networks with continental Europe in 2025.
“The transmission network’s development plan is one of AST’s planning documents in which we have clearly defined investments for development in the coming years. Today’s approved plan is closely tied to the ten-year development plan of ENTSO-E, which is intended to help accomplish one of Europe’s strategic goals for energy supply – synchronization of Baltic States’ power network with Europe,” says AST board chairman Varis Boks.
“We welcome the transmission operator’s initiative to contribute to the security of energy supplies in the Baltic region. After evaluating the projects outlined in the development plan, SPRK also looked at the potential effect on the tariff of the transmission system. We have declared that the influence of the reconstruction projects must not exceed 3%. Considering that the transmission tariff forms a small portion, approximately 25% of the system operator’s costs, which is covered by users, the influence on the end user receipts will be minimal,” says SPRK Energy Department Director Liga Kurevska.
The first stage of the synchronization project involves reconstruction of two existing power lines (Valmiera-Tartu-Tsirguliina), as well as procurement and installation of the system’s synchronization and synchronous compensator. 75% of the total EUR 76 million-worth of expenditures will be covered by the European Union’s Connecting Europe Facility. In the second stage of the project it is planned to install two more synchronous compensators. 75% of co-financing will come from Europe again.
To halt the ageing of Latvia’s power network and sub-stations to ensure stability of the transmission system and uninterrupted supply of power to end users within the demanded volume, AST plans to reconstruct 330 kV and 110 kV sub-stations and transmission points and 330 kV and 110 kV power lines, as well as replace 330 kV and 110 kV autotransformers, as well as other projects intended to maintain the transmission system’s operations. Generally it is planned to invest EUR 228 million into these projects until 2030.
Financial investments are planned with the thought in mind to reduce the number of devices nearing their critical age. (BNN/Business World Magazine)