Latvia-Sweden electricity interconnections would benefit both countries - study

RIGA - The development of the Latvia-Sweden electricity interconnection, named LaSGo - an offshore interconnection between the Kurzeme shore in Latvia and the island of Gotland in Sweden - would be mutually beneficial for both countries, according to a study conducted by the Italian energy consultant CESI S.p.A., LETA learned from Augstsprieguma Tikls (AST) representatives.

A direct connection to Sweden would stabilize electricity supply in Latvia, increase the secure and stable operation of transmission networks in both countries, and promote the development of renewable energy (RES) generation. The transmission system operators of Latvia and Sweden -Augstsprieguma Tikls and Svenska Kraftnat - have reviewed the study findings and agreed on the next steps to jointly continue the project’s studying.

"Both Latvia and the other Baltic states are experiencing a rapid increase in the share of renewables in their electricity generation mix. As this development advances, the Baltic region is expected to become a net electricity exporter by 2031. Establishing of the interconnection would be a strategic long-term investment, providing both imports and exports of electricity as needed, while supporting the integration of renewable energy sources - particularly onshore and offshore wind - into the Latvian and Swedish energy systems. It would also allow for closer integration of balancing markets, improve market liquidity and competition, and increase energy supply security and stability" said Arnis Daugulis, Board Member of Augstsprieguma Tikls.

Latvia’s power system is well connected with Estonia and Lithuania. Latvia's strategic geographical position has potential of the establishment of a connection with Sweden, facilitating the integration of Latvian and Swedish power systems and increasing the Baltic region’s interconnectivity with the broader European grid. The LaSGo project (short for Latvia-Sweden-Gotland) envisions a high-voltage direct current (HVDC) offshore cable developed in two phases: the first involves constructing an internal line in Sweden from the mainland to Gotland, and the second is the interconnection between Gotland and Latvia. Each phase is planned to have a transmission capacity of 700 MW.

The study found that the LaSGo interconnection is designed to operate bidirectionally, enabling both countries to share the benefits of their respective generation expansion plans. The interconnection would improve the management and control of renewable energy, allowing for optimized hourly dispatch or curtailment when necessary, and would contribute to a reduction of projected CO₂ emissions in Latvia - by approximately 35 percent, or 68 kilotons.

The LaSGo project is also beneficial for Sweden overall, and specifically for Gotland, which currently has limited transmission capacity and an outdated connection to the Swedish transmission network. Given Gotland’s planned development of RES generation and electricity demand, the project would provide the island with dual-sided grid support, increasing reliability and stability without developing of major investments in new onshore transmission infrastructure on the island itself.

The goal of the study was to evaluate LaSGo link technical solution, route alternatives, and connection options, its impact on both countries’ transmission networks, power flows, perform static and dynamic stability analyses, as well as to prepare a cost-benefit analysis and key economic indicators. The network and market modelling have been done in the study, using necessary network and market models.