EU supports construction of third Estonian-Latvian electricity connection with 112 million euros

Sunday, 24 May 2015

Estonian state-owned power grid company Elering announced that it signed a financing agreement with the European Commission, according to which the European Union finances the construction of the third Estonian-Latvian electricity connection with 112 million euros.

Estonian-Latvian third connection is formed by 339 kV high-voltage transmission lines from Harku to Sindi and Kilingi-Nõmme to Riga.

The Estonian-Latvian new connection gained the highest support rate, 65%, in the financing round of European energy sphere projects of common interest that were decided upon in August last year.

Elering uses for self-financing revenues accumulated into a special fund from cross-border transmission capacity auctions. The fund has accumulated nearly 27 million euros.

Elering board chairman Taavi Veskimägi said that Estonian-Latvian third electricity connection is a priority project. In addition to Estonia's electricity system, the connection is important for the entire Baltic single electricity market and in view of joining the continental European synchronous area.

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