AST plans to invest EUR 405 million in energy development over next 10 years
According to the ten-year development plan for the Latvian electric power system submitted for the approval to the Public Utilities Commission (SPRK), within the period between 2021 and 2030 the Latvian electric power transmission system operator AS Augstsprieguma tīkls (hereinafter – AST) plans to invest 405 million euros in its own development.
The most significant costs are related to the increase of the transmission network capacity and the increase of the security of the electricity supply in the Baltic region, with the aim of achieving the synchronization of the Baltic electricity system with continental Europe’s in 2025.
Phase 1 of the synchronization project includes the increase of capacity and reconstruction of two existing electric power transmission lines from Valmiera to Tartu and to Tsirgulina in Estonia, as well as the purchase and installation of system synchronization and inertia equipment. The total cost is EUR 76 million, of which 75% is co-financed by the European Union (EU) from the Connecting Europe Facility.
Phase 2 of the synchronization project includes not only modern and efficient inertia equipment, but also modernization of the cross-border commercial accounting system, modernization of emergency automation and dispatching system, and improvement of other IT infrastructure. At present, AST has applied for 75% co-financing from the EU. The total costs of the 2nd phase of the project are planned to be EUR 99.5 million.
Furthermore, to prevent the Latvian power transmission network and substations from becoming obsolete and thus to ensure reliable operation of the transmission system and uninterrupted supply of consumers with the amounts of electric power they need, AST plans to rebuild 330 kV and 110 kV substations and distribution stations, 330 kV and 110 kV transmission lines, to replace 330 kV automatic transformers and 110 kV transformers, and to carry out other projects intended to maintain the operational capacity of the transmission system. In total, EUR 228 million are planned to be invested in these projects by 2030. The investments are planned such that the number of devices that reach or approach critical age is reduced as much as possible in the long run.
On 17 July, SPRK will organise a hearing to find out the opinions of the market participants regarding the development plan of the electric power transmission system. Electric power transmission system users and other interested parties are welcome to join the hearing.
In accordance with the Electricity Market Law, SPRK determines the information to be included in the 10-year development plan of the transmission system, sets up the procedure for submitting it, approves it, and monitors its implementation. SPRK has been assessing and approving the development plan of the transmission system since 2012, annually reassessing the development plan prepared for the subsequent 10 years by AST.
The submitted 10-year plan can be found HERE (in Latvian).