The Connecting Europe Facility (CEF) coordination committee has positively assessed and approved the application submitted by the transmission system operators from the Baltic countries – Latvia, Estonia, Lithuania, and Poland. The financial aid will reach 170 million euros.

Four transmission system operators – PSE (Poland), AST (Latvia), Elering AS (Estonia), and Litgrid (Lithuania) – have applied for CEF financial support for their planned investments in the Baltic synchronization project. The proposal was selected as one of the top 5 projects for funding in the area of trans-European energy infrastructure under the CEF 2021-2027. The application received the highest point score.

Total project cost for the second phase is €238 million, of which CEF funding will cover €170 million. The project partners will receive investment contributions of: PSE – EUR 111 million, Latvian AST – EUR 49 million, Lithuanian Litgrid – EUR 41 million, and Estonian Elering – EUR 37 million.

Baltic Synchronisation Project Phase II (€170 million) Graphics: EU

The funds will be used to expand and modernize the network, install frequency control equipment, and upgrade IT traffic control systems that will enable the Baltic States to desynchronize with the Russian and Belarusian networks and begin operating in synchronous mode with the system of continental Europe. The additional infrastructure will increase security of supply in the region and contribute to the development of the European energy market, helping sustain economic growth, and creating new business opportunities, according to the Polish electricity system operator, PSE.

– Recent months have reminded us again how crucial a well-integrated EU energy market is for affordable energy prices, and security of supply as well as for the transition to clean energy. While we have made significant progress in improving connectivity in our market over the past decade, more can and should be done,” comments Kadri Simson, EU Commissioner for Energy.

Synchronization of the electricity system of the Baltic States with that of continental Europe is to be finalized by the end of 2025. So far, the Baltic synchronization project has been awarded more than 1 billion euros from CEF funds in 2019 and 2020. This funding is for the strengthening of national networks, the construction of the Harmony Link submarine cable, and the installation of synchronous capacitors.

Moreover, it is worth mentioning that CEF funding will support the development of a third transmission line between Sweden and Finland to increase electricity transmission capacity between the two countries and support the integration of onshore and offshore renewable electricity.

Aurora line (€127 million)

Source: European Commission, PSE