A contract has been signed for the construction of the dispatcher management and data center "Jāņciems" and the reconstruction of the production base for the safe management of Latvia's energy system, a critically important project – JSC "Augstsprieguma tīkls" (AST). The implementation of this European Union co-financed national interest object will allow for the creation of a dispatcher management and data center that meets European physical security and functionality requirements, from which, after synchronization with the continental European energy system, energy system balancing and system frequency regulation will be carried out.
"We have been very effective on the path to the independence of the Baltic energy system and its ability to operate autonomously, attracting co-financing from European Union funds for the project implementation, including 64% for the construction of the dispatcher management and data center. The relatively high interest of contractors to participate in the construction tender of this national interest object is positive, with eight candidates applying for the qualification round. Our previous experience, cooperating with various contractors to implement large and complex projects such as the Kurzeme loop, the third Latvian-Estonian interconnection, and the reconstruction of the Valmiera-Tartu and Valmiera-Tsirguliina lines, is a testament to the professionalism of the AST team and gives confidence in the quality completion of this critically important project for the safety of the energy system on time," emphasizes AST Chairman of the Board Rolands Irklis.
By implementing the most ambitious energy independence project in the Baltic States – synchronization with the continental European electricity grids by the beginning of 2025, Latvia will have to independently perform network frequency regulation and balancing provision, among other functions. A European standards-compliant dispatcher management and data center is required for this, which is one of the strategically important projects approved in the AST's decade development plan for the electricity transmission system. After synchronization with Europe, as the workload gradually increases, it is crucial that the new dispatcher management center will allow for the efficient placement of dispatcher workstations and acquisition of data center spaces that meet ENTSO-E (European Network of Transmission System Operators for Electricity) technical requirements. In a temporary solution, the AST dispatcher management center operates in various buildings. The new project will enable AST specialists involved in frequency regulation and balancing to work more efficiently, cooperating closely in one building. Physical security of the dispatcher management and data center is also crucial for the management of Latvia's and the entire Baltic region's energy system, which will be further enhanced as a result of the project construction.
Within the framework of the project, the entire production base, currently comprising ~40 buildings ranging from equipment repair rooms and inspection laboratories to transformer oil purification facilities and special vehicle service rooms, will be renovated and rebuilt on Dārzciema Street 86, Riga. The buildings on the site were primarily constructed from the 1930s to the 1960s, with the newest ones built in the 1990s. Due to the wear and tear of the buildings, it is economically justified to demolish and rebuild 50% of them, while a third requires significant reconstruction for further use. The new project will reduce energy consumption by up to 50% and decrease the total floor area by 15%.
The significant project has secured funding from the European Union's Recovery and Resilience Facility amounting to EUR 38.1 million, of which EUR 27 million is allocated for the construction of the dispatcher management and data center, renovation of the production base territory and building complex, and EUR 11.1 million for information system infrastructure and network management digitalization, without impacting the electricity transmission tariff.
According to the signed contract, construction is planned to begin in the coming weeks. By the end of 2024, the production buildings will be renovated or demolished and rebuilt, by the spring of 2026, the dispatcher management and data center will be constructed, and by the spring of 2027, a new transportation department building and checkpoint will be built to ensure transport for emergency response teams, line and substation service workers maintaining the transmission network infrastructure throughout Latvia, while demolishing the remaining outdated buildings.
The procurement was conducted according to the Public Service Providers' Procurement Law. Initially, eight candidates applied for the tender, seven of whom were deemed to meet the qualification requirements. Four contenders submitted bids. On February 29, 2024, AST signed a contract with SIA "NEWCOM Construction" for the construction of the "Jāņciems" dispatcher management and data center and the reconstruction of the production base territory and building complex. The total contract price is EUR 44,011,768.47, excluding value-added tax, with a completion deadline of September 30, 2027. SIA "NEWCOM Construction" has been operating in the Latvian market for 20 years, constructing residential, public, commercial buildings, and engineering structures.
