All agreed loans

Estonia. Elering AS

Date of loan: 20 Oct 2010
Country: Estonia
Customer: Elering AS
Amount in EUR: EUR 25 million
Maturity: 15 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and environment

Project

The 15-year-maturity loan totalling EUR 25 million has been provided for the construction of a 170-kilometre electricity interconnection between Estonia and Finland, Estlink 2. The new link will be the second power bridge between the Baltic countries and the Nordic region.

Of the entire length of the cable, 145 kilometres will be laid as a sea cable on the sea bed, 14 kilometres as an overhead line in Finland and 11 kilometres as a land cable in Estonia. Once the new 650 MW link is in operation in 2014, the capacity of the interconnection between Estonia and Finland will increase up to 1000 MW. The increase of the transmission capacity is one of the preconditions for the integration of the future power market between the Baltic countries and Nord Pool Spot.

Elering AS is an Estonian state-owned transmission system operator. The company operates a grid of high-voltage power lines uniting Estonia's power producers, distribution networks and corporate consumers into an integral energy system. Currently, Elering has approximately 5,193 kilometres of transmission lines and 142 substations.

Sustainability summary

The main environmental impacts of the project will occur during the construction phase. These are mainly related to the underwater cable laying process, which may cause limited and temporary changes in the sea environment. Elering AS has an Environmental Management System for the project.