15.10.2021
The Public Utilities Commission (PUC) has approved the development plan of Sadales tīkls AS for the upcoming 10 years, which foresees purposeful investments in the development of the electric power infrastructure. Over the period from 2022 to 2031, the company will continue reconstructing and modernising the distribution system according to the industry development trends and the demands of the public. It is planned to facilitate the use of innovative technical solutions in the renovation of the network and carry out work on the development of a smarter electrical network.
The main goal of the company will continue to be raising the quality and safety of power supply. In order to do this, it is planned to ensure that 75% of the electrical network will be isolated over the next decade, including 100% isolation of the low voltage electrical network. The company plans to restore an average of 1,700 kilometres of power lines per year by simultaneously reassessing and optimising the entire coverage of the electrical network.
“Over the past two years, the PUC has been working on regulations in order for the regulator to approve the 10-year development plan of Sadales tīkls. In line with the regulations, the plan places great emphasis on long-term network optimisation, purposeful innovations and specific performance indicators, considering the demands of consumers. Our task will be to oversee the fulfilment of the plan in accordance with the results to be attained with it,” Līga Kurevska, Director of the Energy Department of the PUC, indicates.
“Our long-term goal is to ensure a high level of power supply safety and quality; therefore, we carefully assess our capital investments: we invest where it’s most necessary and where the investments provide the biggest return, i.e., the biggest positive impact on the growth of the national economy. Preparing the distribution infrastructure for an increase in renewable energy production – so that it can ensure a two-way power flow in the network – is also a precondition for attaining the climate neutrality goals of Latvia. Investments are being planned in good time, advisedly, and evenly several years in advance by choosing the most suitable technical solutions,” Sandis Jansons, Chief Executive Officer at Sadales tīkls, comments.
Over the time period of the development plan, the volume of capital investments is planned to amount to an average of EUR 75 million per year. It is planned to invest 78% of total investments or approx. EUR 58 million per year into the reconstruction and renovation of the electrical network. Sadales tīkls will prioritise capital investment projects that will provide the biggest return on safety and reduction of defects for every euro invested. Already next year, in 2022, we plan to invest 30% of total financing in a densely populated electrical network, including the reconstruction of the electrical network of the historic centre of Riga. Investments are also planned for the reconstruction of 110 kilovolt substations.
By carrying out the modernisation of the electrical network, by 2030 we plan to reduce the average unplanned outage duration for each customer served (SAIDI) to 65 minutes (approx. 20% less than in 2020), and decrease the average number of interruptions to 1.3 times per customer (approx. 14% less than in 2020).
We plan to conclude the smart meter installation programme in the coming years, ensuring that at least 98% of all system connections of Sadales tīkls will have smart meters installed (everywhere where commercial metering devices are used). The smart meters will ensure a new level of service quality to users of the system, will improve the work efficiency of the system operator, and will provide unprecedented possibilities in system management, development, and consumption monitoring. The smart meters also facilitate the more energy efficient consumption of power and they are essential in reducing power loss in the system.
With capital investment projects, the main emphasis is placed on investment efficiency, the selection of the most optimal technical solutions, technological development of the electrical network, introduction of smart solutions, innovations, and customer demands. The total volume of investments of Sadales tīkls amounts to EUR 865 million, which includes own funding and third-party investments.
The development plan of the electric power distribution system of Sadales tīkls for 2022–2031 can be accessed in full here