AST plans to invest 413 million euros in development over 10 years
According to the Development plan for the Latvian electric power system submitted for approval to the Public Utilities Commission (Regulator), within the period between 2020 and 2029, the Latvian electric power transmission system operator AS "Augstsprieguma tīkls" (AST) plans to invest 413 million euros in its own development.
Four projects, which will take an estimated 197 million euros in investments, have been awarded or are to be awarded EU co-financing via the Connecting Europe Facility.
The co-financing has so far been awarded to three projects: Construction of the 3rd Latvia/Estonia Interconnection and expansion of the corresponding substation (co-financing: approximately 62%, total investments: 82.66 million euros; the project is to be completed in 2020); construction of a new 330 kV electric transmission line to connect Riga CHP-2 and Riga HEP (7.29 million euros in EU co-financing, with a total of 14.58 million in investments, the project is to be finished in 2020); implementation of phase 1 of the synchronisation of the electric power network with Europe (co-financing: 57.75 million euros; total cost: 77 million euros).
Phase 1 of the synchronisation project includes increasing the capacity of the two current power transmission lines from Valmiera to Tartu to Tsirguliina in Estonia, and buying new system synchronisation and inertial equipment; during phase 2 of the synchronisation project, with an estimated cost of 78.24 million euros, with no co-financing granted yet, it is planned to buy and install the rest of the equipment necessary for system synchronisation and inertia. This project is currently undergoing financing acquisition activities.
Furthermore, to prevent the Latvian power transmission network and substations from becoming obsolete and to thus 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, 216 million euros are to be invested in these projects by 2029. 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 16 June, Regulator will organise a hearing to find out market participants’ opinions about the electric power transmission system development plan. Electric power transmission system user and other interested parties are welcome to join the meeting.
In accordance with the Electricity Market Law, Regulator determines the information to be included in the 10-year transmission system development plan, sets up the procedure for implementing it, approves it and monitors its implementation. Regulator has assessed and approved transmission system development plans since 2012, annually reassessing the development plan prepared for the subsequent 10 years by AST.
The current version of the Latvian electric power system 10-year development plan and the submitted draft can be found on the AST website.