Subsea cable gives Baltic energy grids first European link

Dec 4, 2006, 10:13 GMT

Tallinn - A subsea cable linking the energy grids of Estonia and Finland was inaugurated on Monday - the first time the Baltic states have been linked into European networks.

'The cable was inaugurated today (Monday). When the final tests are done, the cable will be declared operational - hopefully by the end of this week,' a spokesman for Estonian electricity provider Eesti Energia, Iveri Marukashvili, told Deutsche Presse-Agentur dpa.

The cable, known as Estlink, runs over 100 km from the northern Estonian town of Harku to the southern Finnish town of Espoo. Three-quarters of its length lie on the bed of the Baltic Sea.

Its inauguration is seen as an important step towards energy security in the Baltic states. Hitherto, the Estonian, Latvian and Lithuanian national grids had only been linked to Belarus and Russia - countries with whom their relationship is cold at best.

'The importance of the project lies, primarily, in the improved security of electricity supply in the Baltic states. Estlink... provides an alternative electricity purchase channel to cover potential deficits in generating capacity,' a press release from ABB, the firm which constructed the cable, stated.

And the strategic significance of the 110-million-dollar project was highlighted at the opening ceremony, attended by Estonian President Toomas Hendrik Ilves. The ceremony was held in both Espoo and Harku simultaneously, linked by live video relay.

The Estlink project is the result of collaboration between the Estonian, Latvian and Lithuanian electricity providers and two Finnish firms, Pohjolan Voima and Helsingin Energia.

While its initial goal is to allow the Baltics to sell energy generated on their territory to Scandinavia, it will also allow them to import energy from their northern neighbours, an ABB release said.

It is the first in a number of international links designed to break the Baltics' energy isolation. Talks are under way concerning the construction of a subsea cable linking Lithuania and Sweden, and a land-based 'energy bridge' from Lithuania to Poland.

The three Baltic states are also discussing the joint construction of a new nuclear power plant on the site of a former Soviet one in Lithuania. The current plant is due to close in 2009, leading to concerns over long-term energy supply.