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Elektrilevi plans €500M investment in Estonia’s power grid

Elektrilevi, Estonia’s largest electricity distribution network operator, plans to invest about €500M in the country’s power grid. Photo by Elektrilevi

Elektrilevi, Estonia’s largest electricity distribution network operator, plans to invest about €500M in the country’s power grid between 2026 and 2028, including around 3,000 kilometres of weather-resistant network and 1,200 new substations.

The investment programme covers the development of high-, medium- and low-voltage networks, as well as the reinforcement of regional grid nodes, writes ERR News. The planned work will also create additional grid capacity for new connections.

Investment directed to ageing network

Elektrilevi’s largest near-term projects include the reconstruction of a 35-kilovolt overhead line between Läätsa and Kihelkonna on Saaremaa, upgrades to medium-voltage lines in Tallinn’s Mustamäe district, the renewal of the Valjala–Kallemäe line and improvements to the Kohila–Nõela medium-voltage network.

“When planning investments, we look at the big picture across Estonia, rely on the electricity grid development plan and collected network data. We always target investments at areas where the biggest problems with grid quality occur,” said Mihkel Härm, head of Elektrilevi.

Around 26% of Elektrilevi’s network assets have exceeded their expected service life. The company says maintenance programmes have helped keep ageing infrastructure operational, but that continued investment is needed to modernise the grid.

Elektrilevi grid prepared for consumption and renewables

“The power grid must be ready for growing consumption, the addition of renewable energy and increasingly complex weather conditions,” Härm said. “Every renewed substation, reinforced connection and kilometre of weather-resistant line helps reduce the impact of outages on customers and increases the network’s capacity.”

Elektrilevi’s network serves approximately 533,000 customers and covers around 85% of Estonia’s electricity distribution network. The company’s network area excludes Narva and the surrounding region.

According to Elektrilevi’s investment overview, 60% of its network is located in sparsely populated areas that account for only 5% of the electricity transmitted through the grid. The company is replacing ageing bare overhead lines with underground cables and using more weather-resistant covered overhead cables on low-voltage lines. This distribution pattern requires the operator to maintain a broad network while upgrading infrastructure in areas with relatively low electricity consumption.

€308M invested in 2024 and 2025

Elektrilevi invested €308M in Estonia’s electricity network in 2024 and 2025. Completed projects included a 35-kilovolt subsea cable between Hiiumaa and Saaremaa, a new regional substation in Jõgeva and upgrades to medium-voltage feeders on Saaremaa.

The company says that the number of breakdowns has fallen by more than one-third over the past five years, while the average duration of breakdown-related outages per household has more than halved. The 2026–2028 programme will continue the shift towards weather-resistant lines and new substations across the network.

New capacity for grid connections

The planned projects are intended to strengthen supply security while increasing the network’s capacity to connect new customers and accommodate changes in electricity use. The programme will cover infrastructure in several regions, with project priorities based on network condition, service quality and local development needs.

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