Elering, 50Hertz exploring option to build undersea power cable between Estonia, Germany

German transmission system operator (TSO) 50Hertz and Estonian TSO Elering agreed on a joint hybrid submarine cable project between Estonia and Germany. Photo: Arvet Mägi / Virumaa Teataja

In a letter of intent signed on Tuesday, German transmission system operator (TSO) 50Hertz and Estonian TSO Elering agreed on a joint hybrid submarine cable project called Baltic WindConnector in the Baltic Sea between Estonia and Germany.

The aim is to study the technical feasibility and cost-effectiveness of an electricity interconnector of up to 2,000 megawatts between the two countries.

According to Elering CEO Taavi Veskimagi, Elering's main objective is to ensure the security of energy supply for Estonian consumers in a climate-neutral way and in a way that supports the competitiveness of the Estonian economy.

«With the latter goal in mind, we want to find out whether a possible electricity connection between Estonia and Germany could increase the value of our maritime areas in a way that would benefit both the Estonian state and our people,» Veskimagi said in a press release.

«Estonia has significantly more resources for the development of offshore wind farms than is needed to ensure our own security of supply. The analyzes will show us whether the electricity connection with Germany, as a large consumption center, will allow us to increase the export potential here without spending the Estonian consumer's money,» Veskimagi said.

If the joint impact analyses show the technical feasibility and cost-effectiveness of Baltic WindConnector, Elering and 50Hertz will submit the project for inclusion in the ten-year development plan of the power grid to be prepared together by Europe's system operators, after which it will be possible to decide about the project's financing model and sources of external financing.

The Baltic WindConnector will be around 750 kilometers long and will land on the coast of Mecklenburg-Western Pomerania. In addition to the utilization of green power potential through the connection of future large offshore wind farms off the Estonian Baltic Sea coast, both countries and central Europe will benefit from an increase in security of supply. At the same time, Estonia has the chance to become an exporting country of green electricity for the European electricity market. The advantage for Germany is to diversify its sources of green electricity in order to achieve climate neutrality by 2045 and to almost completely decarbonize its industry.

Stefan Kapferer, the CEO of 50Hertz, said the Baltic Sea still offers a lot of potential for the expansion of offshore wind energy and therefore for cross-border projects to develop this potential as efficiently as possible via hybrid interconnectors or energy islands.

«Cooperation with the Baltic states and their stronger connection to the continental European electricity system is important for a climate-neutral Europe and also of great significance in terms of security policy. The Baltic WindConnector should be a first important step on this path,» he said.

Separately from the aforementioned letter of intent, while attending the Baltic Offshore Wind Forum at the German Foreign Ministry in Berlin on Tuesday, 50Hertz and its counterparts from Estonia, Latvia and Lithuania agreed to intensify their cooperation to strengthen their energy sovereignty and cooperate more closely.

The declaration was signed by 50Hertz CEO Stefan Kapferer, Elering CEO Taavi Veskimagi, CEO of the Latvian TSO, AST, Gunta Jekabsone, and Tomas Varneckas, CEO of Lithuania's Litgrid, in the presence of high-ranking officials from all countries involved.