“Eurelectric welcomes the Baltics synchronisation to the European electricity grid. It represents another milestone for energy solidarity and will strengthen the region’s energy security and support the implementation of the Green Deal by ensuring secure, clean and affordable power across borders. We have already seen from Ukraine, the security benefits of being integrated in European energy systems and we look forward to enlarging those benefits to the Baltic region“, said Eurelectric’Policy Director Cillian O’Donoghue.

Second largest synchronous electrical grid worldwide

Also known as Continental Synchronous area, UCTE is the second largest synchronous electrical grid in the world. It supplies over 400 million customers in 24 countries including most EU countries – and as of March 2022 – Ukraine and Moldova. Managing this grid is the European Network of Transmission System Operators for Electricity (ENTSO-E).

Also see: Large-scale battery storage for a stable Latvian power grid

“We should be proud that we have the world’s largest interconnected electricity market that prioritises the most efficient power source. We coordinate hundreds of kilometres of interconnected networks delivering power across borders in times of need, and especially during crises. Diversity is a strength, let’s put it to use», added O’Donoghue.

The Baltics’ integration into the EU electricity grid has been a priority for the European Commission (EC) for many years, receiving substantial EU funding. This successful integration story is even more remarkable if we consider the complexities synchronising to the power grid entails.

Also see: Latvia – New 115 MW solar park

“When the work first began, some questioned the necessity of such a massive undertaking, but today we can all see it was the right decision. More than €1.6 billion has been invested to ensure our transmission grids are up to the task. New 330 kilowatt (kV) powerlines have been built together with batteries and synchronous condensers to make sure the Baltic grids can maintain system balance even during challenging times. In addition to the new infrastructure, we also have frequency markets that are generating new sources of revenue and driving innovation in the energy sector – largely thanks to this synchronisation project», explained Mihkel Härm, CEO at Elektrilevi, Estonia’s largest distribution system operator (DSO).

Stabilise prices – integration of more renewables

Beyond ensuring security of supply, joining the European grid will also provide more competitive energy prices to consumers.  “Local energy production, combined with imports from Nordic and Central European markets, will maintain stability. Integration with Europe’s energy market will stabilise prices, as the Baltic States will gain access to more competitive and diverse electricity sources, including renewables», confirmed Darius Maikštėnas CEO of Lithuanian utility Ignitis Group.

Looking at the big picture, synchronising grids represents a crucial step in the EU integration process at times when external actors are threatening the block’s security.

Also see: New report shows ways to facilitate renewable integration into grids

“The leading companies of the Baltic energy sector have systematically demonstrated professionalism, perseverance and determination to renew and modernise their generation fleet, attract EU funding to strengthen the transmission system and implement this ambitious project. This is the moment when we become part of a united Europe again, taking responsibility for our own systems», concluded Mārtiņš Čakste,  CEO at Latvian utility Latvenergo AS.

Also see: Double investments in power distribution or lose race to net-zero

With energy security topping the agenda of the Polish Presidency of the EU Council, member states should strive to stay united even in their power transmission and distribution systems. The Baltics case showcases how grid synchronisation can offer a way out from depending on unreliable trade partners. (hcn)





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Eurelectric’s Grids for Speed study shows that distribution grid investments should increase from an average €33 billion to €67 billion per year from 2025 to 2050, roughly 20% of what the EU spent on fossil fuel imports in 2023. Getting the grid up to speed will significantly reduce fossil fuel imports, create more than 2 million jobs, bring greater energy savings and deliver more reliable power supply while accelerating the decarbonisation of Europe’s economy.

Societal shifts are changing Europe’s energy system at a disruptive speed. By 2050, electricity will make up 60% of final energy use compared to 23% today, renewable capacity will have increased six-fold from 2020 with 70% of renewable generation and storage connecting at distribution level. Connection requests are increasing faster than grid modernisation and will continue to grow as electrification of end-use sectors progresses. These developments put a strain on the grid.

Massive grid investments and grid-friendly flexibility

To relieve the strain, annual investments into new and modernised infrastructure, including digitalisation, should reach €67 billion from 2025 to 2050, around 0.4% of EU GDP., the new Grids for Speed study shows. Forward-looking grid strategies such as anticipatory investments, optimal asset management and grid-friendly flexibility could lower this to €55 billion per year if properly implemented. Failure to invest would jeopardise 74% of prospective connections in key decarbonisation technologies such as electric vehicles (EVs), heat pumps and renewables. Investing, on the contrary, will accelerate electrification and help the EU save €309 billion every year on fossil fuel imports from 2040 to 2050.

“For a successful energy transition the EU needs massive amounts of additional grid capacity. Investment volumes for distribution system operators needs to double. Whilst this will require a significant ramp up, the cost of not investing is even higher. To succeed we need attractive returns for investors to be able to finance it, technology and fast electrification to manage the distribution fees. ”– says Eurelectric’s President and E.ON CEO Leonhard Birnbaum.

Also the supply chain has to scale up

Scaling grid investments requires a dual effort. National authorities should implement the agreed legislation – such as anticipatory investments – while adapting the regulatory regime to support the investment surge. This means eliminating investments caps, fast-tracking grid permitting and procurement procedures and de-risking investments to spur private funding while opening up of public financing through EU budget.

Also interesting: Joint initiative for a competitive decarbonized European industry

Futureproofing the grid also depends on the supply chain’s capability to scale. Even if the necessary investments are met, current shortages of copper, a talent deficit, extended manufacturing lead times and transformers’ costs can hamper infrastructure development. Such bottlenecks must be addressed through strategic planning, enhanced collaboration between policymakers and industries and new training initiatives to ensure a skilled workforce.

Eurelectric calls on policymakers both at national and regional level to secure grid investments, strengthen supply chains and unleash the societal benefits of Grids for Speed. (hcn)





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