The Baltic synchronisation project receives record financial support

The Baltic synchronisation project receives record financial support

A Commission proposal to invest nearly €1 billion in European energy infrastructure was approved by EU Member States. The large amount of funding will be allocated to 5 key European energy projects under the Connecting Europe Facility (CEF) and 3 of them are located in Central Europe: the Baltic Synchronisation Project, phase II: €720 million, Danube Ingrid: €102 million, the Bulgaria – Serbia Interconnector: €28 million. The application for the Phase II of the Baltic Synchronization Project was given the highest score out of 28 application submitted for funding, receiving a maximum 75% of total available funds. The second phase will focus on 3 areas: the construction of the Lithuanian-Polish Interconnector Harmony Link (€493 million), support for the installations of synchronous compensators in Estonia, Latvia and Lithuania (€166.5 million) and the modernization and development of local grids, which will use remaining funds to adjust the grids to allow for integration with the newly-built Harmony Link. CEO of Litgrid, Daivis Vibrickas, noted that the preparations for the second phase of synchronization were also running smoothly through COVID- 19: together with the Polish operator, we were carrying out the preparatory work for the Harmony Link connection, and we had already announced a tender for synchronous compensators. The Baltic Synchronization Project is important for the creation of common European electricity market, ensuring secure transmission and energy independence from Russian systems. According to the plans the project should be completed by the end of 2025 and will give the Baltic States full control over their electricity system. Sources: European Commission, enmin.lrv.lt, [...]
Baltic offshore wind declaration signed

Baltic offshore wind declaration signed

The 8 EU Member States, including Estonia, Latvia, Lithuania and Poland, signed a joint declaration of intent committing themselves to closer cooperation around the development of the Baltic Sea offshore wind energy area. The declaration emphasized the potential of the Baltic Sea Region to become a crucial offshore wind energy area, reaching up to 93 GW capacity in the EU by 2050. As stated by the declaration, a cooperative, regional approach for the Baltic Sea Region must be at the core of any path taken to build up an offshore wind energy area. The 8 EU Member States agreed to explore the most effective ways to coordinate their efforts in developing such an area through the the Baltic Energy Market Interconnection Plan (BEMIP) High-level Group. In order to operationalize this political declaration, the BEMIP High-level Group has been tasked with adopting a programme for Baltic Sea Region offshore wind development by the Spring of 2021 which should be in line with National Energy and Climate Plans of the 8 EU Member States and any EU-level policy developments around renewable energy production. The Polish Climate Minister Michal Kurtyka underlined the scheme would not only ‘’make our economies greener but also generate maximum economic benefits from the development of offshore wind farms’’ and favour employment in ‘’shipyards, the steel and metal processing industry’’. He also stressed that the Baltic Sea could play an important role in energy transition of the countries of our region. Also, the Lithuania Minister of Energy Žygimantas Vaičiūnas said that the plan gained new impetus and stressed the importance of using this type of energy. Poland aims [...]
Latvia and Estonia sign MoU for joint offshore wind farm

Latvia and Estonia sign MoU for joint offshore wind farm

Latvia’s Minister for Economics Janis Vitenbergs and Estonia’s Economy and Infrastructure Minister Taavi Aas have signed a Memorandum of Understanding on the joint project of the offshore wind farm construction. “The development of wind energy over the next decade is very important for the Baltic States,” said Minister Vitenbergs. “Good neighbours joining forces in major energy projects is the reasonable and cost-efficient thing to do,” added Minister Aas. The project aims to create a high capacity (at least 700-1000 megawatts) offshore wind park by 2030, which is up to 20 % of the power consumption of the two countries. The project will also serve as a proof of concept for hybrid asset consisting of the dual-use transmission network and off-shore wind park. The joint project makes it possible to attract investments in offshore wind farms to the region and makes connecting to the grid more affordable for others. After the states have carried out the necessary studies like environmental impact assessment, they carry out an auction for the superficial license. Estonia and Latvia will split the costs and income of the project equally. Estonia and Latvia share the vision that a cooperation in offshore wind is an excellent solution for moving towards higher RES level. “We believe that this project could be the first of many off-shore wind flagships under the BEMIP regional cooperation. The forthcoming European Commission’s Off-shore Renewable Energy Strategy should pave the way for such projects to materialize by facilitating sufficient financing” Aas and Vitenbergs said. Source: CEE energy news, [...]
Progress in development of offshore wind in Lithuania and Poland

Progress in development of offshore wind in Lithuania and Poland

The development of offshore wind in Poland and Lithuania is accelerating as the governments of both countries prepare to adopt the regulatory framework for the construction and functioning of the offshore wind farms. The countries plan to use a so-called contract for difference (CfD) scheme, similar to that of Britain to support wind power producers. The Lithuanian energy ministry has prepared a package of draft laws to regulate offshore wind development in the Baltic Sea with an eye to holding an auction in 2023. The law would create a clear and transparent regulatory environment for the offshore wind development. Lithuania has already picked a site in the Baltic Sea that could support up to 700 MW of capacity by 2030. The territory planned in the Baltic Sea for the wind turbines covers an area of 137.5km2, with a distance from shore of approximately 29 km, an average water depth of 35 km and an average wind speed of approximately 9 m/s. A wind farm of this capacity in the Baltic Sea is expected to produce approximately 2.5-3 TWh of electricity per year, which is nearly a quarter of Lithuanian’s current electricity demand. In Poland, the offshore wind potential is estimated up to 11 GW by 2040. According to the proposed offshore wind draft act, up to 5.9 GW will be selected by Poland’s energy regulator by the end of June 2021. In the second phase, Poland will hold auctions for 5 GW of capacity in two tranches of 2.5 GW each in 2025 and 2027, respectively, in order to select bidders offering the lowest price of electricity. The draft [...]
PGNiG and Toyota set to jointly advanced hydrogen in Poland

PGNiG and Toyota set to jointly advanced hydrogen in Poland

Polish Oil and Gas Company (PGNiG) and Toyota Motor Poland signed an agreement on cooperation in advancing technology in Poland. A pilot hydrogen refuelling station will be built under this agreement. Jerzy Kwieciński, President of the PGNiG Management Board said that the launch of a pilot programme refuelling station would be PGNiG’s first step in the implementation of the Group’s hydrogen programme. In addition, he stressed that the partnership would contribute to successful advancement of the hydrogen fuel market in Poland. PGNiG’s hydrogen research programme unveiled in May provides for the production of hydrogen, including green hydrogen using renewable energy sources, hydrogen storage and distribution and industrial application. The operation of a hydrogen refuelling station, to be built in Warsaw, is also part of the programme. PGNiG has already signed a contract with a consortium of Poland and UK based companies for the design and construction of the station. The agreement forges a partnership between two entities actively involved in the development of the Polish Hydrogen Strategy. The joint operations are intended to introduce hydrogen as a clean fuel for zero-emission fuel cell vehicles on the Polish market. ‘Operation of the pilot station will help PGNiG to acquire hydrogen competencies relevant to such projects. We aim to expand our product range to include hydrogen, also as a motor fuel, which would complement our CNG and LNG offering and contribute to the advancement of low-emission and zero-emission gas mobility in Poland,’ said Arkadiusz Sekściński, Vice President of the PGNiG Management Board, Development. Source: PGNiG Image taken from the European Commission’s library and [...]
BALTIC POWER TRADE with non-EU countries

BALTIC POWER TRADE with non-EU countries

The Estonian, Latvian and Lithuanian energy ministries reached an agreement on regulating power trade with non-EU countries. Under this agreement, the trade in electricity with Belarus will stop after the launch of the Astravets nuclear power plant. The agreement, which covered a number of power issues, is valid through 2025, when Baltic electricity systems are expected to be synchronized with the European network. A tariff will be introduced in 2021 for the use of common infrastructure under the deal, once Lithuania and Latvia adopt the required legislation. Estonian law already allow the introduction of the tariff. Some of the electricity trade will be redirected to the Russian-Latvian connection, using excess capacity from intra-Baltic trade. Power trade between Russia’s Baltic exclave of Kaliningrad and Lithuania will continue in its current volume. Trade in electricity between the Baltic states and non-EU states will be reduced by approximately a half by this agreement. The new methodology for calculating capacity for trade with third countries will be submitted to energy market regulators. Source: The Baltic Course, Politico, LRT [...]