EU grants EUR 170 million for the final phase of the Baltic synchronisation project
On Wednesday, 26 January, the coordinating committee of the key EU fund for infrastructure Connecting Europe Facility (CEF) evaluated in its final selection process and approved the proposal submitted by the Baltic and Polish transmission system operators, granting EUR 170 million financial assistance to a range of projects as part of the synchronisation of the Baltic States with the Continental European Synchronous Area (CESA).
"The project application, prepared jointly with our Baltic and Polish colleagues, received the highest rating among the five infrastructure construction projects that were supported in this round of funding. It proves that a secure, stable, and timely synchronisation of the Baltic power systems with the Continental European Synchronous Area is important not only regionally, but also on the Europe level. The funds will be used to increase security of the electricity transmission network and supply, as well as to ensure frequency regulation and control. The total amount of CEF funds already allocated for the Baltic synchronisation project is more than one billion EUR ", points out Gunta Jēkabsone, the Chairperson of the Augstsprieguma tīkls AS (AST) Board.
Four transmission system operators - PSE (Poland), AST (Latvia), Elering AS (Estonia), and Litgrid (Lithuania) - applied for a support from CEF to finance the planned investments under the project Phase 2 part II of the Baltic Synchronisation. The proposal was selected among top 5 projects for grants in the field of trans-European energy infrastructure under the CEF for the period 2021-2027 and has received the highest evaluation score.
The total costs of the Phase 2 Part II projects are assumed EUR 227 million of which CEF grant will cover EUR 170 million. Thus, the project partners will be investing different amounts: Polish PSE – EUR 102.7 million, Latvian AST - EUR 49.5 million, Lithuanian Litgrid - EUR 40.9 million and Estonian Elering AS to receive EUR 36.6 million.
The sources will be spent on grid reinforcements, frequency regulation equipment, and upgrading of IT control systems enabling the Baltic states to desynchronise from the Russia and start operating in synchronous mode with the CESA. The additional infrastructure in the second stage of the synchronisation will increase the security of supply in the region, foster renewable energy project development and contribute to the development of the internal European energy market by helping to sustain the economic growth and creating new business opportunities.
The Baltic synchronisation project has been granted more than EUR 1 billion from CEF funds in 2019 and 2020 together. The funds have been used on national grid reinforcements, construction of submarine HVDC cable Harmony Link and installation of synchronous condensers in the Baltic States. The synchronisation of the Baltic States’ power system with the CESA is planned to be finalised by the end of 2025.
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.