Fingrid and Elering, the electricity transmission system operators (TSOs) in Finland and Estonia, respectively, have entered into an agreement concerning the construction of a second DC link, EstLink 2, between the two countries. The submarine cable, costing 320 million euros, plays an important role in the enhancement of the electricity market in the Baltic Sea region. Opening the market in Latvia and Lithuania, together with the reinforcement of the electricity transmission connections from the Baltic countries to Sweden and Poland, will be the next steps in the expansion of the market.

The EstLink 2 transmission connection will feature a transmission capacity of 650 MW. Together with the existing transmission connection of 350 MW, the electricity transmission capacity between Finland and Estonia will rise to 1000 MW. The goal is that the new link will be brought to commercial operation early in 2014.

EstLink 2 is one of the reinforcements in the electricity transmission system suggested by the TSOs in the Baltic Sea region. The Commission of the European Union also considers the transmission connection between Finland and Estonia very important in view of market development and security of supply in the region, which is why it has granted an investment subsidy of 100 million euros for the project.

The Nordic electricity exchange expanded to Estonia at the beginning of April. The subsequent market developments have been rapid. By the autumn of 2010, the entire capacity of the Estlink 1 transmission connection between Finland and Estonia has been made available to the market, and the price area Estlink became the price area of Estonia in October. The next objective of the TSOs in the Baltic Sea region and of the Nordic electricity exchange is to integrate the electricity markets in Latvia and Lithuania to Nord Pool Spot's trading system.

Learn more at www.fingrid.fi.