Latvia’s AST to invest €500m into grid modernisation and European synchronisation

Latvian transmission system operator AST (AS Augstsprieguma tīkls) has announced plans to invest €509.8 million ($571.4 million) until 2033 to modernise the transmission grid and disconnect from the Russia and Belarus-controlled network.

European Union funds will co-fund €135.8 million ($152.2 million).

In a statement issued by AST, the TSO’s board member Arnis Daugulis commented on how the funds are intended to drive fundamental changes needed across Latvia’s transmission network infrastructure.

“…by 2025 the Latvian transmission system will be fully prepared for the start of synchronous work with continental Europe. Disconnecting the Latvian electricity supply system from the network controlled by Russia and Belarus is a basic condition for ensuring Latvia’s energy independence,” stated Daugulis.

According to the Daugulis, the investment will also be used to install anti-emergency automatic equipment and improve “the commercial accounting of electricity for international connections and the dispatch management system.”

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€188.8 million ($211.7 million) will go towards the completion of the Baltic Synchronisation project, which will see the Baltic states synchronise with the European system, rather than that of Russia. The investment will be funnelled into completing the infrastructure and ICT aspects of the project, in line with the TSO’s plan for 2024 to 2033.

In the period until 2033, it is planned to invest €21 million (23.5 million) to €30 million ($33.6 million) annually in the reconstruction of 330kV and 110kV substations, lines and distribution points, ensuring the stable operation of the transmission system and the continuous supply of electricity to users.

In each project, AST has stated it will evaluate the wear and tear of infrastructure objects, verify their planned load and plan the development of the network in such a way as to prevent the transmission equipment from reaching its critical age in the long term.

The development plan of the Latvian transmission system also examines the dynamics of renewable energy power plant connections to the electricity transmission network, as well as perspective development projects on the shores of the Baltic Sea region.

This includes potential interconnections between Latvia-Sweden and the Baltic-Germany, which in the future could provide opportunities for the export of electricity produced in Latvia.