Electricity transmission system operators Elering and Augstsprieguma tīkls (AST) have agreed to build a new interconnector between Estonia and Latvia.

Their memorandum of understanding (MoU) sets out a plan to boost capacity between the countries by developing a fourth interconnection system, further developing renewable energy sources in the Baltic Sea region.

The new interconnector, to be built in hybrid mode, will transmit 1GW of electricity.

Elering and AST are yet to finalise the exact location of the interconnection and other technical details.

Based on previous evaluation and analysis, the interconnector system will be completed by the 2030s, along with investments supporting transmission infrastructure.

The two companies have also agreed on prerequisite studies to create an environmentally friendly, technically and economically preferable scenario for future investment decisions.

They anticipate co-financing from the EU. The final investment decision on the project will be taken after securing EU support.

AST board member Arnis Daugulis stated: “The new interconnection is an important step in transmission capacity increase between Estonia and Latvia, which is essential for the development of renewable energy sources (RES) in Latvia and Estonia, both onshore and offshore.

“We see this cooperation as the first step towards the creation of an interconnected hybrid transmission grid in the Baltic Sea, thereby contributing to the goals of decarbonisation and RES development for the whole Baltic Sea region.”

Elering board chairman Kalle Kilk stated: “Establishing a new connection to Latvia via Saaremaa would enable the most additional capacity between the two countries to be obtained at the lowest cost.”