Baltic and Polish TSOs applied for CEF funding for synchronisation investments

Transmission system operators (TSO) from the Baltic States: Litgrid (Lithuania), AST (Latvia), Elering (Estonia) and from Poland (PSE), today submitted a joint application for funding from the Connecting Europe Facility (CEF).

Four TSOs request a financial support for the investments of Baltic Synchronisation project Phase 2 part II which are crucial for secure and stable synchronisation of Baltic power systems with the Continental European Synchronous Area and desynchronization from the Russian unified power system. The sources will be spent for grid reinforcements, frequency regulation equipment and upgrade of IT control systems.

The four countries wish to receive CEF support for the investments worth EUR 238 million. The amount of the Lithuanian investments is EUR 41 million, Latvian – EUR 49 million, Estonian – EUR 37 million, and Polish - EUR 111 million.

CEF is the key EU funding instrument, established to promote growth, jobs, and competitiveness through targeted infrastructure investment at the European level. It supports the development of high performing, sustainable and efficiently interconnected trans-European energy networks.

The Baltic synchronisation project has already been granted from CEF funds in 2019 and 2020. Baltic States and Poland have so far received more than EUR 1 billion for national grid reinforcements, construction of submarine HVDC cable Harmony Link and installation of synchronous condensers in the Baltic States. Further CEF support would help to complete on time the whole synchronisation project which is of high importance to both the Baltic region and the EU. The joint application to CEF is an example of fruitful and productive regional cooperation focused at the ensuring the security of supply and market integration of the Baltic countries.

So far, the applicant countries have accomplished several investments linked to the synchronisation i.e. reinforcement of power lines, building of autotransformers, construction of third interconnection between Estonia and Latvia. Most of the major construction tenders have been successfully completed and the renovation of power lines and the construction of synchronous condensers have been launched. Moreover, PSE and Litgrid have jointly performed numerous works in the preparatory phase for Harmony Link, including seabed survey, acquisition of land for the substations and have also started the procurement procedure of HVDC cable and converter stations. 

The constructing of additional infrastructure among the countries in the phase 2 of the synchronization will enhance energy security of the region but will also create new opportunities for energy market participants thus boosting the functioning of the internal European energy market. It will also facilitate economic growth and create new business opportunities.

The synchronization of the Baltic States’ power system with the Continental European Network is planned to be finalised by the end of 2025.