Project 124 - NordBalt phase 2

Second phase includes the internal network reinforcements in , and Latvia to be able to fully utilize the interconnector between Lithuania and Sweden.

Classification Long-term Project Boundary Lithuania - Sweden PCI label 4.4.2

Promoted by AST;;SVK

Investments GTC Evolution Investment Contribution Substation Present Commissioning since Description Substation 2 Evolution Driver ID 1 Status Date TYNDP 2014 New single circuit 330 kV OHL Panevezys- Project implementation Musa. Project is depends on decisions needed to utilise full Panevezys about new nuclear power 378 21% Musa (LT) Planning 2023 Delayed 700 MW capacity of (LT) plant in Lithuania and HVDC connection project 170."Baltic NordBalt in all regimes. synchronisation".

The last part of A part of Kurzeme's Grobina Under 385 20% Imanta (LV) 2019 Delayed reinforcement for ring project (LV) Construction Kurzemes ring project

New single circuit 400 Ekhyddan Nybro/Hemsjö Design & Commissioning date is 733 kV OHL 100% 2023 Rescheduled (SE) (SE) Permitting current estimation

Additional Information

Svenska kraftnät has published a national development plan in 2015. The purpose of the plan is to be an investment plan for the following ten years, 2016-2025. The investment plan presents a detailed look of the projects Svenska kraftnät intends to realize under the stated time period. The plan is available in Swedish through the following link: http://www.svk.se/siteassets/om-oss/rapporter/natutvecklingsplan-2016-2025.pdf (Swedish)

Main characteristics about project: NordBalt project information (LITGRID) Investment needs

This is second phase of the NordBalt DC interconnector between Lithuania and Sweden that will connect the Baltic grid to the Nordic and integrate the Baltic countries (Estonia, Latvia, Lithuania) with the Nordic electricity market and will also increases security of supply.

The main driver is to be able to fully utilize the NordBalt interconnection by eliminating bottlenecks in Sweden and Lithuania.

In Sweden new lines between Ekhyddan – Nybro – Hemsjö are built in parallel to existing lines to cope with overloaded underlying distribution network due to increased power flow in the region caused by NordBalt.

In Baltics new lines in Lithuania (Panevezys-Musa) and Latvia (Grobine-Imanta) are planned to strenghten western part of electrical network which is necessary to fully utilise 700 MW DC link capacity.

This is a PCI project.

This project does not directly contribute to the capacity between the Nordic area and the . However, it is needed to ensure long term secure operation of the already commissioned 700 MW Nordbalt interconnector (SE-LT). That interconnector is important in order to integrate the Baltic states in European electricity market.

Project Cost Benefit Analysis

This project has been assessed by ENTSO-E in line with the Cost Benefit Analysis methodology, approved by the EC in February 2015.

The indicators B6/B7 reflect particular technical system aspects of projects based on a summation of qualitative performance indicators, in line with the CBA methodology; these cannot be used as a proxy for the security of supply indicator.

The assessment of losses variations induced by the projects improved in the TYNDP 2016 compared to the TYNDP 2014 with a comprehensive all year round computations on a wide-area model capturing all relevant flows.

The results must however be considered with caution and not totally reliable due to their very high sensitivity to assumptions regarding the detailed location of generation which are not secured. General CBA Indicators Delta GTC contribution (2020) [MW] SE4-LT: 0 LT-SE4: 0 Delta GTC contribution (2030) [MW] SE4-LT: 0 LT-SE4: 0 Capex Costs 2015 (M€) 294 ±30 Source: Project Promoter

Early cost estimation:

new 330 kV OHL Panevezys-Musa (LT) 17 MEur Cost explanation new 330 kV OHL Ventspils–Imanta (LV) 127 MEur

new 400 kV OHL Ekhyddan-Nybro-Hemsjö (SE) 150 MEur

S1 NA S2 NA B6 ++ B7 ++

Scenario specific CBA indicators EP2020 Vision 1 Vision 2 Vision 3 Vision 4

B1 SoS (MWh/yr) N/A N/A N/A N/A N/A B2 SEW (MEuros/yr) N/A N/A N/A N/A N/A B3 RES integration (GWh/yr) N/A N/A N/A N/A N/A B4 Losses (GWh/yr) -150 ±25 -150 ±25 -125 ±25 -100 ±25 -75 ±25 B4 Losses (Meuros/yr) -7 ±1 -8 ±1 -6 ±1 -6 ±2 -5 ±2 B5 CO2 Emissions (kT/year) N/A N/A N/A N/A N/A

Delta GTC for NordBalt Stage 2 project is 0 MW becouse NordBalt Stage 1 is 700 MW HVDC connection, and Stage 2 has the same 700 MW but has only internal grid improvements in Baltics and in Sweden, to ensure 700 MW capacity in all regimes.

Connections to the Nordics can bring potential balancing market benefits in the intraday market which has not been considered in the CBA analysis, the benefits are increased for markets with a lot of wind or hydro as the output can vary a lot from the forecasts.

Complementary information about the border on Vision 1 Vision 2 Vision 3 Vision 4 which the project is located Average marginal cost difference in the reference case 1.30 2.13 2.77 4.69 [€/MWh] Standard deviation marginal cost difference in the 5.60 6.67 11.76 14.20 reference case [€/MWh] Reduction of marginal cost difference due to all mid-term 1.92 1.53 4.77 5.25 and long-term projects [€/MWh]