VZCZCXRO1796
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHTL #1090 3451529
ZNR UUUUU ZZH
R 111529Z DEC 06
FM AMEMBASSY TALLINN
TO RUEHC/SECSTATE WASHDC 9329
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHMO/AMEMBASSY MOSCOW 2463

UNCLAS TALLINN 001090 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG PREL FI EN
 
SUBJECT: NORDIC-BALTIC ELECTRICITY CABLE UP AND RUNNING 
 
 
¶1.  On December 4th, simultaneous inauguration 
ceremonies took place in Estonia and Finland opening 
the Estlink electric power cable between the two 
countries.  The Estlink submarine cable, finished 
roughly five months ahead of schedule, marks the first- 
ever linkage of the Baltic and Nordic power grids. 
Estlink's capacity current is 350 MW.  The current plan 
is for energy to flow from Estonia to Finland; 
Estlink's capacity can meet approximately 2% of Finnish 
electricity demand.  It is possible, however, to send 
power in either direction.  According to Einari Kisel, 
Director of the Energy Department at the Estonian 
Ministry of Economic Affairs and Communication (MOE), 
Estlink's capacity could meet 100% of Estonia's 
electricity needs during off-peak demand in the summer, 
or roughly 1/3 of peak demand during the winter. 
 
¶2.  In planning and financing stages for over six 
years, the opening of the Estlink cable increases the 
number of energy supply choices available to Estonia 
and connects the Baltic energy network with that of the 
EU.  While EU funds paid for the Estlink feasibility 
study in the late 1990s, financing for the final EUR 
110 million (USD 146.3 million) project came solely 
from the three Baltic power companies Eesti Energia 
(40%), Latvenergo (25%), Lietuvos Energija (25%), as 
well as Pohjolan Voima and Helsingin Energia (10%) of 
Finland. 
 
¶3. At a July 2006 conference on EU-Russia Energy 
Relations in Tallinn, Andris Kesteris, spokesman for EU 
Energy Commissioner Andris Piebalgs (who attended the 
December 4 inauguration), said that Estlink is one of 
the best examples of cooperation in energy markets. 
Also, MOE's Einari Kisel told us that the cooperation 
displayed by the three Baltic energy companies on the 
Estlink project could be a model for further progress 
on the planned replacement of the Lithuanian nuclear 
power plant at Ignalina.  This project, however, will 
be privately financed, as opposed to the much smaller, 
publicly financed Estlink project. 
 
¶4. Comment:  Though a modest step towards greater 
energy independence for Estonia, the opening of the 
Nordic-Baltic Estlink cable serves as a successful 
example of effective partnership between the two 
markets.  End comment. 
 
WOS