Modernization and development of transmission network

Latvian electricity transmission system operator Augstsprieguma tīkls AS is responsible for the safety of electricity supply and modernization and development of transmission network. Major development projects are shown on the map.

To provide for safe operation of the Latvian electricity system, effective functioning of the electricity market and to prevent ageing of equipment, Augstsprieguma tīkls AS is reconstructing and modernising the high voltage substations and the points of electricity distribution. Considering the trends in the development of electricity systems in Latvia and neighbouring countries, Augstsprieguma tīkls AS is assessing and deciding on the need to develop interconnections of the Latvian power transmission system and to strengthen and modernise the internal network.

The power transmission network is developed according to the Latvian power transmission System Development Plan and the European Ten Year Network Development Plan. Those Latvian projects are included in the European Ten Year Network Development Plan that are strategically important not only nationally, but for the Baltic Sea Region in general, and inclusion in the European Ten Year Network Development Plan is one of the preconditions for the projects to be able to apply for European co-funding.

The above development projects may be funded from various sources:

  • One of the principal sources of funding is the power transmission tariff approved by the Public Utilities Commission, a certain portion of which is intended for development projects;
  • It is possible to attract European co-funding from the CEF (Connection Europe Facility)  for strategically and internationally important power transmission network development projects;
  • Development projects that increase the cross-border transmission power and eliminate bottlenecks in the power transmission network may be funded from the congestion management revenue of the transmission system operator, which is generated from the difference in electricity prices in different trading regions due to insufficient cross-border transmission power.
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