EU subsidy for submarine cable between Estonia and Finland

EstLink 2, the joint project by Fingrid and Elering, the electricity transmission system operators in Finland and Estonia, for the construction of a new submarine cable between the two countries is making progress. The Commission of the European Union made a decision on 8 July 2010 concerning a subsidy of 100 million euros for the EstLink 2 transmission link. The capacity of the new link costing a total of approx. 320 million euros is 650 megawatts, and it is due to be commissioned in early 2014.

The Commission of the European Union considers the transmission connection between Finland and Estonia as very important, which is why it has granted an EU subsidy of 100 million euros for the EstLink 2 connection.

The subsidy is part of a broader recovery package of the EU, aiming to stimulate economic activity in the Union and also support the strategic energy policy objectives. In this way, one of the two conditions imposed by the Board of Directors of Fingrid in its investment decision of 19 May 2010 has been fulfilled. The final execution of the project still requires that the recently-opened electricity market in Estonia continues to develop favourably. The preliminary planning of the project together with Elering has progressed on schedule.

The environmental, nature and water ecology studies as well as the seabed survey were completed in the early part of 2010. The permit applications were delivered to the authorities in the spring of 2010, and inquiries to submit quotations for the converter stations, cable, transmission line and substations have been sent. The goal is to sign the contracts with the suppliers in 2010. Forest and earthwork at the Anttila substation in Finland will commence in the autumn of 2010 so that the targeted schedule can be kept.

Further information:
Fingrid: Jukka Ruusunen, President & CEO, tel. +358 (0)40 593 8428 and
Risto Ryynänen, Project Manager, tel. +358 (0)40 519 5093