On 18 May 2022, the European Commission approved the RePowerEU plan, a solution to the difficulties and disruptions in the global energy market due to Russian invasion of Ukraine. The RePowerEU plan is prolongation of the Recovery and Resilience Fund (RRF), which supports coordinated cross-border and national infrastructure planning and financing, as well as energy projects and reforms. On 8 March 2022, the European Commission proposed an indicative roadmap to make Europe independent of Russian fossil fuel resources well before 2030. European Council leaders on 24-25 March 2022 agreed on this initiative and asked European Commission to present a detailed RePowerEU plan, which was adopted on 18 May 2022.
The RePowerEU plan was approved on 27 February 2023 by Regulation (EU) 2023/435 of the European Parliament and of the Council of 27 February 2023 amending Regulation (EU) 2021/241 as regards REPowerEU chapters in recovery and resilience plans and amending Regulations (EU) No 1303/2013, (EU) 2021/1060 and (EU) 2021/1755, and Directive 2003/87/EC. RePowerEU investments are eligible for projects made between February 2024 and August 2026.
Latvia's energy sector is also facing major challenges due to the war in Ukraine, which is related with significant price increases for energy equipment and materials, as well as complications in logistics processes due to the geopolitical situation in the world.
Taking into account mentioned above, Latvian RePowerEU plan also expected to support the energy sector, where Augstsprieguma tīkls AS (AST), as the transmission system operator (TSO) responsible for the reliability and stability of electricity supply in the power system, plans to implement:
- Investment 7.1.1.1.i. "Synchronisation of the electricity transmission system", where AST will implement the delivery and installation of Battery Energy Storage System (BESS) project in Rezekne, as well as implement cyber security and Renewable Energy Sources (RES) concept development related to the synchronisation mode of the Baltic States with continental Europe;
- Investment 7.1.1.2.i. "Modernisation of electricity transmission and distribution networks", under which AST will implement transmission system substation projects to connect RES, as well as studies related to the infrastructure development opportunities in Latvia.
On 26 September 2023, the Cabinet of Ministers of the Republic of Latvia adopted Cabinet decision No 635 (https://likumi.lv/ta/id/345848-par-latvijas-atveselosanas-un-noturibas-mehanisma-plana-papildinajumu) "On the amendments to the Recovery and Resilience Fund Plan in Latvia" on the conditions for implementation of RePowerEU support in Latvia.
The total RePowerEU grant for AST projects is EUR 73.2 million, where EUR 60.2 million is allocated to the synchronisation activities and EUR 13 million for the transmission network modernisation and related studies. The projects should be implemented by June 2026.
On 2 July 2024, the Cabinet Regulation No 432 on the implementing rules for RePowerEU energy sector projects (https://likumi.lv/doc.php?id=353320&version_date=04.07.2024) was approved, based on what AST must implement investments 7.1.1.1.i and 7.1.1.2.i.
Based on the approved Cabinet Regulations, the Ministry of Climate and Energy of Republic of Latvia, as RePowerEU energy sector projects supervisory body, on 8 July 2024 invited AST to submit applications for RePowerEU funded investments.
After submission and evaluation of AST applications, on 17 October 2024 AST signed agreements both RePowerEU investments 7.1.1.1.i and 7.1.1.2.i with the Central Finance and Contracting Agency (CFCA), as the EU funds management and control authority in Latvia, on the conditions for the use and management of RePowerEU funding.
Under investment 7.1.1.1.i. "Synchronisation of the electricity transmission system" AST is implementing:
- Rezekne BESS project is on active implementation phase, agreement with constructor is signed on 16 February 2024, equipment is delivered and construction is ongoing. Projects will be finalised at the end of 2025. More information about Rezekne BESS projects can be found here.
- Cybersecurity project is on active implementation phase;
- RES concept project will be started on 2025.
Under investment 7.1.1.2.i. "Modernisation of electricity transmission and distribution networks" AST is implementing:
- Kuldiga 110kV digital substation. Agreement with constructor is signed and construction works are ongoing. Project will be finalised on May 2026.
- Carnikava 110kV "green" substation. Agreement with constructor is signed and construction works are ongoing. Project will be finalised on May 2026.
- Study on the consumption development trends in Latvia. Study is finalised on March 2024. Report can be found here.
- Study on the innovative measures for RES connections to the transmission network in Latvia. Study is finalised on August 2024. Report can be found here.
- Environmental impact assessment study for transmission line "Ventspils-Broceni-Varduva/Telši". Study is ongoing. Progress information can be found here.