Elering

Elering AS is Estonia's national transmission system operator for electricity and natural gas. Headquartered in Tallinn, the company operates infrastructure that supports the reliability, balancing, cross-border exchange and market integration of Estonia's energy system. Its electricity responsibilities include the Estonian high-voltage transmission grid, interconnections with Latvia and Finland, and participation in the European transmission-system-operator framework. Its gas responsibilities include Estonia's high-pressure natural-gas transmission network and related cross-border infrastructure. The organization originated on 1 November 1998 as Põhivõrk, an operating unit of Eesti Energia, Estonia's national power company. It was incorporated as the private limited company OÜ Põhivõrk in April 2004 while remaining an Eesti Energia subsidiary. In June 2009 it adopted the Elering name. Later that year, Estonia chose ownership unbundling in response to the European Union's Third Energy Package. The state completed the purchase of Elering from Eesti Energia on 28 January 2010, establishing the company as an independently owned transmission operator rather than a transmission business controlled by a vertically integrated energy producer. Elering became a public limited company, AS Elering, in February 2011. Elering has played a central role in integrating Estonia into the Nordic and wider European electricity market. In February 2010 it agreed with Nord Pool Spot to establish an Estlink price area, which began operating in April that year. The company operates or manages Estonia's transmission connections with Latvia and Finland, including the Estlink interconnections, and works with neighboring transmission operators on regional system planning. Elering is also a member of the European Network of Transmission System Operators for Electricity. The company expanded into natural-gas transmission in the mid-2010s. In November 2014, Elering acquired a majority interest in AS Võrguteenus Valdus, the holding company associated with EG Võrguteenus. It subsequently acquired stakes held by Gazprom and Itera Latvija and bought out minority shareholders. In December 2015, Elering decided to combine Elering Gas and Võrguteenus Valdus into Elering. This made the company a combined electricity and gas transmission operator and supported the restructuring of Estonia's gas sector under European unbundling rules. Regional system security and energy independence have remained important strategic themes. Elering has worked with Latvia's Augstsprieguma tīkls and Lithuania's Litgrid to move the Baltic electricity systems from the BRELL synchronous area toward synchronous operation with Continental Europe. The three operators signed a cooperation agreement on this objective in May 2019. Elering has also worked with Finland's Baltic Connector Oy on the Balticconnector undersea gas pipeline between Estonia and Finland. Through these interconnections and market arrangements, Elering's role extends beyond domestic grid operation to regional energy integration, cross-border resilience and the transition of the Baltic energy system.

Elering began on 1 November 1998 as Põhivõrk, an operating unit within Eesti Energia. Its original role was associated with the operation of Estonia's electricity transmission network. On 1 April 2004, Põhivõrk was separated into a private limited company, OÜ Põhivõrk, but remained a subsidiary of Eesti Energia. The company was renamed Elering on 10 June 2009. That same period brought a major governance change. To implement the European Union's Third Energy Package and its ownership-unbundling principle, the Estonian government decided to acquire Elering from Eesti Energia. The transaction closed on 28 January 2010, separating the transmission operator from the country's vertically integrated electricity producer and placing Elering under state ownership. On 2 February 2010, Elering agreed with Nord Pool Spot to establish the Estlink price area; the arrangement became operational on 1 April 2010. Elering was converted into a public limited company, AS Elering, on 25 February 2011. During the electricity-market integration phase, Elering developed its role as the operator of Estonia's high-voltage grid and its cross-border connections. The company operates connections with Latvia and Finland, including the Estlink links to Finland, and coordinates with neighboring system operators on regional reliability and market arrangements. It is also part of the European Network of Transmission System Operators for Electricity. Elering broadened its remit to natural gas in November 2014, when it acquired a majority holding in AS Võrguteenus Valdus, whose assets included EG Võrguteenus. That business had originated as a subsidiary of Eesti Gaas and had previously combined transmission and distribution activities. The distribution network was separated in 2013 as part of the restructuring required by European energy-market rules. Elering acquired the interest associated with Gazprom in June 2015 and the interest associated with Itera Latvija in September 2015. After acquiring the remaining minority interests in December 2015, Elering decided to merge Elering Gas and Võrguteenus Valdus into the Elering organization. The gas expansion made Elering Estonia's combined electricity and gas transmission system operator. In the regional gas market, the company worked with Finland's Baltic Connector Oy on the Balticconnector undersea pipeline between Estonia and Finland. In electricity, Elering worked with Augstsprieguma tīkls of Latvia and Litgrid of Lithuania on replacing the Baltic systems' historical BRELL synchronization arrangement with synchronous operation in Continental Europe. The three operators signed an agreement on this objective on 24 May 2019. Elering's contemporary identity is therefore defined less by consumer-facing products than by critical infrastructure. Its activities include grid operation, system balancing, transmission capacity, market coupling, interconnection management and long-term regional system development. The company remains active as Estonia's state-owned electricity and natural-gas transmission operator, with Tallinn as its headquarters.

• 2019

  Baltic synchronization cooperation is formalized

  [1]Eleringen.wikipedia.org

  Elering, Augstsprieguma tīkls and Litgrid sign an agreement to pursue synchronization with the Continental European grid.

• 2015

  Gas-transmission assets are consolidated

  [1]Eleringen.wikipedia.org

  Elering acquires further shareholder interests and decides to merge Elering Gas and Võrguteenus Valdus into Elering.

• 2014

  Expansion into gas transmission

  [1]Eleringen.wikipedia.org

  Elering enters the natural-gas transmission market by acquiring a majority stake in AS Võrguteenus Valdus.

• 2011

  Elering becomes a public limited company

  [1]Eleringen.wikipedia.org

  The company is transformed into AS Elering on 25 February.

• 2010

  State ownership is completed

  [1]Eleringen.wikipedia.org

  Estonia completes the purchase of Elering from Eesti Energia on 28 January, implementing ownership separation for the transmission operator.

• 2010

  Estlink price area begins

  [1]Eleringen.wikipedia.org

  The Nord Pool Spot Estlink price area, created through an agreement signed in February, starts operation on 1 April.

• 2009

  The Elering name is adopted

  [1]Eleringen.wikipedia.org

  OÜ Põhivõrk changes its name to Elering on 10 June.

• 2004

  Põhivõrk becomes a separate company

  [1]Eleringen.wikipedia.org

  On 1 April, Põhivõrk is incorporated as OÜ Põhivõrk while remaining an Eesti Energia subsidiary.

• 1998

  Põhivõrk is established

  [1]Eleringen.wikipedia.org

  Põhivõrk begins operations on 1 November as an operating unit of Eesti Energia.

A state-owned, infrastructure-focused transmission-system operator serving Estonia and supporting Baltic and Nordic energy-market integration.

• Electricity infrastructure · 1998

  Electricity transmission network

  Elering operates Estonia's high-voltage electricity transmission system. The service involves transporting electricity between generators, interconnectors, distribution networks and large users, while maintaining system balance, security and continuity. It is an infrastructure and regulated network service rather than a conventional retail electricity product.

• Cross-border electricity infrastructure

  Estlink interconnections

  The Estlink connections link Estonia's electricity system with Finland and provide cross-border transmission capacity between the Baltic and Nordic electricity markets. Elering operates the Estonian side of these interconnections and uses them as part of Estonia's regional market integration and system-security architecture.

• Gas infrastructure · 2014

  Natural-gas transmission network

  Following its gas-sector expansion in 2014 and 2015, Elering became Estonia's natural-gas transmission system operator. Its activities cover the high-pressure transmission network, capacity and system operation, and cross-border coordination with neighboring gas-system operators.

• Cross-border gas infrastructure

  Balticconnector

  Balticconnector is the undersea gas-pipeline project connecting Estonia and Finland. Elering developed the project with Finland's Baltic Connector Oy, supporting regional gas-market integration and additional cross-border transmission capacity.

• 2019

  Baltic grid synchronization strategyStrategy

  Background

  The Baltic electricity systems were historically synchronized with the BRELL system and were being prepared for integration with Continental Europe.

  Action taken

  Elering signed a cooperation agreement with Latvia's Augstsprieguma tīkls and Lithuania's Litgrid to pursue synchronous operation with the Continental European grid.

  Aftermath

  The agreement established a formal regional framework for changing the Baltic electricity system's synchronization arrangement.

  Source

• 2015

  Consolidation of gas-transmission ownershipM&A

  Background

  Elering sought full control of the gas-transmission assets associated with Võrguteenus Valdus.

  Action taken

  It acquired the stakes held by Gazprom and Itera Latvija and later acquired minority shareholders' interests before deciding to merge the related gas companies into Elering.

  Aftermath

  Gas-transmission activities were consolidated within Elering's state-owned transmission-operator structure.

  Source

• 2014

  Acquisition of a majority interest in Võrguteenus ValdusM&A

  Background

  Estonia's gas-transmission sector was being reorganized to comply with European unbundling requirements.

  Action taken

  Elering acquired a majority stake in AS Võrguteenus Valdus, gaining a platform for its entry into gas transmission.

  Aftermath

  Elering expanded from electricity transmission into combined electricity and natural-gas transmission operations.

  Source

• 2010

  Creation of the Estlink electricity price areaStrategy

  Background

  Estonia was developing stronger electricity-market links with Finland and the Nordic market.

  Action taken

  Elering signed an agreement with Nord Pool Spot to create the Estlink price area, which started operating on 1 April 2010.

  Aftermath

  The arrangement supported Estonia's participation in regional electricity trading and cross-border market integration.

  Source

• 2009

  Ownership unbundling from Eesti EnergiaStrategy

  Background

  European Union energy-market rules called for separation between transmission-system operation and vertically integrated energy production and supply interests.

  Action taken

  The Estonian government decided to acquire Elering from Eesti Energia; the transaction was completed in January 2010.

  Aftermath

  Elering became an independently state-owned transmission operator, strengthening the organizational separation of Estonia's electricity network.

  Source

• 2019

  Baltic transmission operators sign Continental Europe synchronization agreement[1]Eleringen.wikipedia.org

  Other

  Elering, Latvia's Augstsprieguma tīkls and Lithuania's Litgrid agreed to cooperate on connecting the Baltic electricity systems with the synchronous grid of Continental Europe.

• 2015

  Elering completes additional gas-sector share acquisitions[1]Eleringen.wikipedia.org

  M&A

  Elering acquired stakes associated with Gazprom and Itera Latvija and later bought out minority shareholders of AS Võrguteenus Valdus.

• 2014

  Elering enters Estonia's natural-gas transmission sector[1]Eleringen.wikipedia.org

  M&A

  Elering acquired a majority stake in AS Võrguteenus Valdus, beginning its expansion from electricity transmission into natural-gas transmission.

• 2010

  Elering agrees to establish an Estlink electricity price area with Nord Pool Spot[1]Eleringen.wikipedia.org

  Other

  Elering signed an agreement with Nord Pool Spot to create an Estlink price area, which began operation on 1 April 2010 and supported Estonia's integration into the Nordic electricity market.

1. 1Eleringen.wikipedia.org