Latvia’s AST secures €73m for grid synchronisation and modernisation

Latvia’s AST secures €73m for grid synchronisation and modernisation

Latvian transmission system operator AST has concluded two agreements to receive €73.24 million ($79.42 million) to develop the electricity transmission network and prepare for the synchronisation of the Baltic states with Europe.

The agreements were concluded with the Central Finance and Contracts Agency (CFLA) to receive funding from the EU’s Recovery and Resilience Mechanism.

According to AST in a release, of the allocated funding, €60.34 million ($65.43 million) is earmarked for investment in the country’s synchronisation of its electricity transmission system with the European grids.

This same amount will be used to finance supply and installation of the electricity storage battery system at the Rēzekne substation, development of cybersecurity solutions, as well as development of renewable resources for operation in the mode of synchronisation with Europe.

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The remaining €12.9 million ($14 million) will be used for the modernisation of the country’s electricity transmission and distribution networks, across projects including construction of the digital substation in Kuldīga and the reconstruction of the green substation of Carnikava for the connection of renewable energy to the transmission network.

Additionally, the allocated funding is planned to be directed to several important studies related to the achievement of climate goals and increasing the proportion of renewable energy sources (RES). This includes studies on trends in the growth of electricity consumption in Latvia, on innovative solutions for RES connections to the Latvian electricity transmission network, as well as for the study of the environmental impact assessment for the transmission network reinforcement project in Kurzeme (a new 330kV electricity transmission line Ventspils – Brocēni – Telši/Varduva (Lithuania)).

Commenting in a release was AST board member Arnis Daugulis: “After Russia’s invasion of Ukraine, as the prices of equipment and materials in the energy sector have significantly increased, the RePowerEU funding raised is an important support for the implementation of the AST transmission network investment projects.

“They will contribute to the achievement of Latvia’s climate goals and the increase in the share of renewable energy, as well as the reliability of the transmission network and electricity supply in the Baltics.”

In compliance with the conditions for receiving funding, most of the mentioned project activities have already been started.

Disconnection of the Baltic energy system from the combined energy system of Russia and synchronisation with Europe is planned for February 2025.

Currently, the three transmission system operators of the Baltic States are working on the final projects.