JSC “Augstsprieguma tīkls” signs contract for €73.24 million funding from Recovery and Resilience Fund RePowerEU Financial Plan
Latvia’s transmission system operator JCS “Augstsprieguma tīkls” (AST) has signed two agreements with the Central Finance and Contracting Agency (CFLA) for the €73.24 million funding from the European Union’s (EU) Recovery and Resilience Fund RePowerEU plan. Within the framework of the EU-supported energy sector transformation, AST will invest in the development of the electricity transmission network and the synchronisation of the Baltic states with continental Europe.
“With the increase of equipment and material prices in the energy sector due to Russia’s invasion of Ukraine, the RePowerEU funding is a significant support for implementing AST transmission network investment projects. These projects will contribute to achieving Latvia’s climate goals, increasing the share of renewable energy, and improving the security of the transmission network and electricity supply in the Baltic region,” emphasized Arnis Daugulis, a member of AST Management Board.
€60.34 million of the allocated funding is designated for investment in “Electricity Transmission System Synchronisation” (7.1.1.1.i), which is related to Baltic synchronisation activities with continental Europe. This includes the delivery and installation of a Battery Energy Storage System (BESS) at the Rēzekne substation, the development of cybersecurity solutions, and the creation of a renewable energy sources (RES) concept for operation under synchronisation mode with continental Europe. The desynchronisation of the Baltic energy system from the Russian unified energy system and synchronisation with continental Europe is planned for February 2025. Currently, the transmission system operators of the three Baltic states are working on final projects to ensure a more secure, stable and efficient operation of the energy system after synchronisation. The synchronisation is the top priority energy independence project in the Baltics.
Meanwhile, €12.9 million funding has been allocated for the investment in “Modernization of Electricity Transmission and Distribution Networks” (7.1.1.2.i), which includes innovative and sustainable projects such as the construction of the Kuldīga digital substation and the reconstruction of the Carnikava green substation for RES connection to the power grid. The funding will also be used for several important studies related to climate goals and increasing the share of RES, i.e. study on electricity consumption growth trends in Latvia, study of innovative solutions for RES connections to the Latvian electricity transmission network, and an environmental impact assessment study for the transmission grid reinforcement project in Kurzeme, including a new 330 kV transmission line between Ventspils, Brocēni, and Telši/Varduva (Lithuania).
In compliance with the funding conditions, most of the mentioned project activities have already begun.
About JSC "Augstsprieguma tīkls"
AST, the Latvian electrical power transmission system operator, ensures uninterrupted and secure transmission of electricity throughout Latvia. Its vision is to become the leading transmission system operator in the region through the efficient and successful implementation of development-oriented changes. AST has 68.46% shareholding in the capital of the operator of the natural gas transmission and storage system AS “Conexus Baltic Grid”.
Further information:
Līva Jēgere
Head of Communications
Ph: +371 26151344
Email: liva.jegere@ast.lv
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