The Swedish and Finnish Transmission System Operators (TSO) signed the agreement for the construction of a new 800 MW interconnection alternative current (AC) line which will spread over 370 km between Messaure (Sweden) and Keminmaa (Finland). The agreement defines the terms of planning, construction, connection and financing of the management until it is deployed. The estimated costs of the project are expected to amount €200m.
The technical feasibility study will be completed by March 2018. The construction works are scheduled to start by the end of 2022 and the commissioning is scheduled for the end of 2025. Besides, Fingrid also intends to apply for the status of a project of common interest (PCI) and European funding.
The existing lines between the two countries are among the most congested in Europe. Imports of electricity from Sweden have increased in recent years but the cross-border capacity has not adapted to the new needs, thus impacting the power prices in both countries. The current transmission capacity amounted 2,300 MW as of March 2016.