Baltic energy system's isolated operation test might be rescheduled because of EstLink 2 disruption - AST

RIGA - Because of the recent disruption of the Estonian-Finnish power cable EstLink 2, the Baltic energy system's isolated operation test might be rescheduled, Gatis Junghans, board member of Augstsprieguma Tikls (AST) power transmission system operator, told reporters on Monday.

In his words, disconnection from the Russian-controlled energy network BRELL will take place on the morning of February 8, and the Baltic energy system's isolated operation test is scheduled to take place for the two following days.

The decision on the test's rescheduling might be taken in the next coming weeks, Junghans said.

If the test is rescheduled, it will not affect synchronization with European power networks in any way, as the Baltic states will go ahead with the disconnection from BRELL in any case. The EstLink 2 incident will affect the electricity price but not supply, the AST board member said.

According to Junghans, the synchronization with Europe will not affect the electricity market as it does not include energy from Russia. Also, consumers will not feel the switch from one power grid to another.

AST CEO Rolands Irklis said that the company is currently not aware of any attacks that would indicate Russian involvement. At the same time, the EstLink 2 outage is most likely Russian-initiated, which also makes AST pay extra attention to security.

Climate and Energy Minister Kaspars Melnis (Greens/Farmers) noted that one should bear in mind that we are living in a time of hybrid war. The parties involved in the project in are also prepared that a lot of disinformation will be spread ahead of the disconnection from BRELL.

Irklis told the reporters that the Baltic power grids' synchronization with the European energy system is the largest energy independence project in the history of Latvia and the Baltics.

"There have been various other projects, but this is the final one, by which we become independent from the Russian and Belarusian energy systems," Irklis stressed.

Irklis indicated that in October 2024 the Russian transmission system operator agreed to terminate the BRELL contract and there were no official objections from Russia at the moment.

The objectives of synchronization are energy independence, security of electricity supply and the European single market.

Regarding the synchronization infrastructure, Irklis said that the infrastructure has been reinforced in four countries - the Baltic states and Poland. The total investment in the project is around EUR 2 billion, including around EUR 480 million in Latvia.

At the same time, Irklis said that the Baltic transmission system operators will introduce a regional capacity reserve market. AST will also join the European energy balancing platforms Mari and Picasso, thereby ensuring the availability of energy resources and fostering competition.

Regarding the financing needed for the synchronization, Irklis indicated that in Latvia, European Union (EU) funding covers 67 percent, or EUR 321 million, which is the bulk of the investments related to the synchronization project.

The new electricity tariffs will be effective from January 1, 2026, with the effect on the electricity price from synchronization costs estimated at 1 percent and on the distribution tariff at 0.25 percent.

As reported, this past July the Baltic TSOs notified the Russian and Belarusian TSOs of their decision not to renew of the BRELL contract, and the contract, which defines the principles of the operation of the Baltic power systems within the Russian-controlled IPS/UPS system, will expire in February 2025.

The Lithuanian, Latvian and Estonian systems are scheduled to be disconnected from the Russian system on February 8 and the first joint isolated operation test will begin, and their connection to the European synchronous area is scheduled for February 9, 2025.