The Recovery and Resilience Fund (RRF) is a temporary financial instrument and a central element of the NextGenerationEU recovery plan. It is expected to help EU Member States to recover from the COVID-19 pandemic and make the European Union more stronger and resilient.
AS "Augstsprieguma tikls" is implementing projects with total RRF support of EUR 38,100,000 where EUR 27,000,000 is related for the construction of the national energy system dispatcher control and data centre, and the reconstruction of the existing territory, while EUR 11,100,000 is intended for the development and implementation of information systems and network management digitization measures. The agreement of the use and management conditions of RRF funding, between AST and the Ministry of Economics of Latvia, as the supervisory institution of the RRF energy sector projects, was signed on 2023 March 27. The RRF projects must be implemented by the May 2026.
The goal of RRF funding is to provide Member States with the implementation of ambitious reforms and investments aimed at:
- making economy and society more sustainable, resilient and better prepared for the green and digital transition in line with EU priorities;
- to respond of the problems indicated in the recommendations addressed to specific countries within the framework of the European economic and social policy coordination during half-year.
The RRF grant was started in February 19, 2021, based on the Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility, approved on February 12, 2021. It will finance EU Member States reforms and investments made between the start of the pandemic in February 2020 and till August 2026.
The energy sector in Latvia also faces big challenges after the COVID-19 pandemic, due to increase of prices for equipment and labour in the energy sector, therefore the RRF plan is expected to provide support for the 1.2.1.5.i. investment in Latvia "Modernization of electricity transmission and distribution networks" under which AS "Augstsprieguma tīkls" (AST), as a transmission system operator (TSO), responsible for the security and stability of electricity supply in the energy system, received financing for the reform component of the modernization of the electricity transmission system. The project includes the development of information technology solutions for increasing the flexibility and reliability of the transmission system, the development of dispatch control and data centre, including the creation of a new data connection and information technology infrastructure solution for the main data centre and reserve data centre in Latvia, the creation of a national data platform, including creation of necessary information system infrastructure and developed network management digitalisation for the implementation and operation of climate-neutral solutions promoting the achievement of Latvia climate goals, ensuring the implementation of climate-neutral information technology (IT) solutions of the energy sector for the management and control of connected renewable energy sources (RES), contributing and supporting the development of Latvia's energy policy and economy.
On 15 November 15 2022, the Cabinet of Ministers of the Republic of Latvia published Cabinet Regulation No. 726 (https://likumi.lv/ta/id/337225) "Implementing Rules for Reform 1.2 and branch "Improvement of energy Efficiency" of the European Union Recovery and Resilience Fund Plan Investment 1.2.1.5.i. "Modernisation of Electricity Transmission and Distribution Networks". The Cabinet Regulation has been amended on 18 June 2024 with Cabinet Regulation Nr. 361.
More about RRF fund can be found https://www.esfondi.lv/en
In order to prevent information technology solutions and data fragmentation in the balance management, as well as taking into account the increasing requirements from market participants for data availability and exchange, Augstsprieguma tīkls AS (AST) should replace the existing IT balance management solutions with a common IT system that provides full functionality of balance management, including the power system balance planning, adjustment, calculation and approval of cross-border capacities, automation of the settlement system, archiving of balancing data, loss planning process and balancing bid management process, together with the necessary reports.
The Balance Management System is integrated with a other internal and external systems. The main purpose of BMS is to provide the business processes necessary for the operation of the electricity transmission system and the electricity market and the exchange of data with other parties involved in these processes. The BMS includes presentation, business logic and data stages. The BMS portal (clients/public) is available to BSPs (balancing service providers) and RSPs (regulation service providers) via a web browser. The system contains the following modules:
- Balance planning;
- Regulation bids management;
- Imbalance settlements;
- Transparency reporting to ENTSO-E;
- Cross-border capacity (NTC) planning;
- Short-term power adequacy.
All mentioned modules automatisation will be done under BMS project, standardised data exchange between systems will be implemented, the common database for balancing processes and data will be implemented, significantly reducing data and application fragmentation. The project was started on 24 October 2018 with AST Board decision No 179/47/2018 and is on active implementation phase. The project costs are eligible from 1 February 2020.
The Balancing Management System (BMS) became operational from 31 May 2023, on 11 October 2024 Mari platform functionality started operation and till May 2026 other necessary BMS functionalities will be implemented in BMS.
The BMS is designed to allow the system operator and balancing service customers and regulation service providers could exchange with information to support business processes. Access to the system is provided to the market participants that have concluded a balancing or regulation service contract with AST. More information on balancing the system can be found here, while market information is available on the Transparency platform at https://transparency.entsoe.eu/ and https://baltic.transparency-dashboard.eu/.
More information about Balance management system can be found here.
Connecting of Renewable Energy Sources (RES) power plants to the transmission network is not related only with development of transmission infrastructure (lines, substations, transformers), but also with new IT systems, without which newly connected RES generators cannot be planned, modelled, regulated and controlled. The Network Model Management (NMM) information system is an essential and integral part of the whole RES integration process, connecting the Latvian IT system with a common European electricity market planning and management system, which is a prerequisite for reliable and stable synchronisation with continental Europe. During project implementation will be provided:
- common source for the collection and maintenance of main data for network model and data automatic update according to actual changes in the network;
- update of network model data from the developed NMM system to other AST IT systems and tools;
- use of network models in the developed system for AST modes and outage planning;
- possibility to extend the functionality of the developed system, including the data exchange with other information systems in AST and ENTSO-E level.
The project is started on 6 November 2019 with AST Board Decision No 160/46/2019 and is on active implementation phase. Project planned to be completed by 31 May 2026. The project costs are eligible from 1 February 2020.
Secure operation of the electricity system and Latvian electricity system synchronisation with continental Europe is impossible without a secure IT infrastructure and cybersecurity, protecting from infrastructure outages, external threats and cyber-attacks. This is essential at all levels of power system management, both in the short-term and long-term.
During implementation of the project, is expected to provide necessary server and data network infrastructure for new data centre (compute, collect), to ensure information systems compliance for critical infrastructure requirements. It is also expected to provide the necessary solutions to improve cyber security. For these purposes, the special IT infrastructure solutions for the cyber security monitoring are planned with implementation of relevant equipment and systems.
The project has started in the beginning of 2020 and is expected to be completed by 31 May 2026.
