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Nove Advises Elering on Agreement with Siemens Energy for Synchronous Compensators

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Nove has advised Elering on its agreement with Siemens Energy for the construction of three synchronous compensators for frequency stability of the electricity systems at the 330 kilovolt substations in the Estonian communities of Viru, Pussi, and Kiisa.  

The Estonian branch of Siemens Energy Oy and Siemens Energy Global, which participated in the tender as joint bidders, were confirmed as the winners of the tender as the lowest bidder. The total cost of the tender was EUR 83.5 million. According to an Elering press release, "the cost of the procurement was assessed in three parts - in addition to the construction cost of the compensators, maintenance costs over eight years and operating costs over the life of the equipment were also taken into account."

The devices will be manufactured at the Siemens Energy Global plant in Germany. The design and construction of the synchronous compensators will begin in 2021 and the final of the three is expected to be commissioned by the end of 2024.

By the end of 2025, the Baltic States will be ready to disconnect their electricity systems from Russia's interconnected electricity system, where the frequency is controlled by Russia. The transition to the continental European frequency band is expected to give the Baltic States full control over their electricity systems. 

According to Taavi Veskimagi, Chairman of the Management Board of Elering, synchronous compensators are the primary technical capability of Elering dispatchers to ensure the operation of the electricity system after the separation from Russia. "Without the inertia provided by these devices, the risk of the power system suddenly shutting down and consumers being left without power would be very high," Veskimagi explained. |This is a very important investment in creating the 'first defensive wall' of the electricity system."

Nove's team included Partner Kristjan Tamm and Attorney at Law Veiko Vaske. 

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