An agreement is signed on a project of critical importance for the safe management of the Latvian power system – the construction of the Dispatch Control and Data Centre “Jāņciems” and the reconstruction of the production base of JSC "Augstsprieguma tīkls" (AST). The implementation of the project of national interest, co-financed by the European Union, will make it possible to obtain a dispatch control and data centre that meets European requirements for physical safety and functionality, and from which, after synchronisation with the Continental European power system, power system balancing and system frequency regulation will be carried out.

“On the way to the independence of the Baltic states power systems and their ability to operate independently we have been very efficient in attracting co-financing from European Union funds for the implementation of the projects, including 64% for the construction of the Dispatch Control and Data Centre. The relatively high level of interest of contractors in participating in the procurement for the construction of this facility of national interest is positive. Our previous successful experience in cooperation with various contractors in implementing such large and complex projects as the Kurzeme Ring, the third Latvian-Estonian interconnection, and the reconstruction of the Valmiera-Tartu and Valmiera-Tsirgulina lines, is a testament to the professionalism of the AST team and gives confidence in the quality and timely completion of this important project for the security of the power system,” says Rolands Irklis, Chairman of the Management Board of AST.

With the implementation of the most ambitious energy independence project in the Baltic states – synchronisation with Continental European grids in early 2025 – Latvia will have to independently perform grid frequency regulation and balancing as well as other functions. This requires a European-compliant dispatch control and data centre, which is one of the strategically important projects in the AST ten-year development plan for the electricity transmission system approved by the Public Utilities Commission. After synchronisation with Europe, with the gradual increase in workload, it is essential that the new dispatch control centre will allow the efficient deployment of dispatcher workstations, and have a data centre in line with ENTSO-E (European Network of Transmission System Operators for Electricity) technical requirements. In the interim solution, the Dispatch Control Centre of AST operates in different buildings. The new project will enable AST specialists involved in frequency regulation and balancing to work more efficiently in one building. The physical security of the Dispatch Control and Data Centre is also important for the management of the power system in Latvia and the entire Baltic region and will be further enhanced as a result of the project.

As part of the project, the entire production base at 86 Dārzciema street in Riga will be restored and renovated, which currently includes ~ 40 buildings, from equipment repair rooms and inspection laboratories to transformer oil purification facilities and special transport service rooms. The existing buildings on the site were mainly built between the 1930s and the 1960s, with the newest structures being built in the 1990s. Due to the deterioration of the buildings, it is economically viable to dismantle and rebuild 50% of the buildings, while a third require significant alterations for their continued use. The new project will reduce energy consumption by up to 50% and reduce the total floor area by 15%.

For the implementation of this important project, funding from the European Union's Recovery and Resilience Mechanism in the amount of EUR 38.1 million has been attracted, of which EUR 27 million is for the construction of the Dispatch Control and Data Centre, the reconstruction of the production base area and the building complex, and EUR 11.1 million for information systems infrastructure and the digitisation of network management, with virtually no impact on the electricity transmission tariff.

According to the signed contract, it is planned to start construction works in the next few weeks. By the end of 2024, the production buildings will be renovated or dismantled and rebuilt, the Dispatch Control and Data Centre will be built by spring 2026, and the transport department building and control point will be rebuilt by spring 2027 to provide transport for the operative field teams, as well as line and substation services staff that maintain the transmission network infrastructure throughout Latvia, at the same time dismantling the remaining buildings that have served their time.

The procurement was carried out in accordance with the procedures specified in the Law on Procurement of Public Service Providers. Eight candidates applied for the initial selection in procurement, of which seven were recognized as meeting the qualification requirements. Four bidders submitted bids. On February 29, 2024, AST concluded a contract with SIA "NEWCOM Construction" for the construction of the dispatcher control and data center "Jāņciems" and the reconstruction of the production base territory and building complex. Total contract price EUR 44,011,768.47 without value added tax. The term of the contract is until September 30, 2027. SIA "NEWCOM Construction" has been operating in the construction market of residential houses, public and commercial buildings, as well as engineering facilities in Latvia for 20 years.