The TSOs signed a memorandum of understanding to increase capacity between the countries. This will contribute to the development of renewable energy sources in the Baltic Sea region.

The interconnection will be built in hybrid mode and it will also be possible to connect RES offshore and onshore production capacities to it.

The project will increase system security and stability and creates opportunities to receive a larger amount of RES into the Estonian and Latvian electricity networks.

It will help to contribute to the fulfillment of the countries' climate goals, Elering said in a statement on Thursday.

The exact location of the interconnection and other technical details will be agreed on in the future. The estimated capacity will be 1,000 megawatts.

Elering's board chairman Kalle Kilk said the company is exploring the possibilities of a new connection between Saaremaa and Courland.

"Establishing a new connection to Latvia via Saaremaa would enable the most additional capacity between the two countries to be obtained at the lowest cost," he said.

The third Estonian-Latvian electricity interconnection has been constructed and started operating in 2020.

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