To agree on the next development steps of the potential Latvia–Sweden electricity interconnection LaSGo, the electricity transmission system operators of the two countries – AS Augstsprieguma tīkls (AST) and Svenska Kraftnät (SVK) – in cooperation with the Norwegian energy field consultant THEMA Consulting Group, will carry out the study of the project's economic benefits by the end of 2026.

As previously reported, a study conducted in 2025 by the Italian energy consultant CESI S.p.A. on the development of the LaSGo (Latvia–Sweden–Gotland) electricity interconnection between the Kurzeme shore of Latvia and the island of Gotland in Sweden concluded that the project would be beneficial for both countries. A direct electricity connection between Latvia and Sweden would increase the stability of electricity supply, improve the security and reliability of power system operation, and facilitate the integration of renewable energy sources (RES) into transmission system. The study assessed several interconnection development scenarios, estimated the project's preliminary costs, and included a cost-benefit analysis.

Having reviewed the study results and recognising the project's significance for Latvia and the whole Baltic Sea region, the two transmission system operators agreed to carry out an additional economic assessment, based on that the Memorandum of Understanding between AST and SVK was signed on 16 April 2026. The additional study is intended to evaluate the economic benefits from project implementation for both countries and will provide the basis for decisions on the project's further development.

With intergovernmental agreement on the project between Latvia and Sweden, its further development would become possible for European Union co-financing attracting for additional studies and construction works. To qualify for funding under the Connecting Europe Facility (CEF), the project should be included in the Ten-Year Network Development Plan (TYNDP) list and subsequently in the European Union list of Projects of Common Interest/Project of Mutual Interest (PCI/PMI).