Polish and Baltic transmission system operators jointly apply for co-financing of energy infrastructure construction from CEF funds

Transmission system operators of the Baltic States and Poland submitted on Tuesday, May 26, 2020, a joint application for funding from the Connecting Europe Facility (CEF). Polskie Sieci Elektroenergetyczne (Poland), Litgrid (Lithuania), AST (Latvia) and Elering (Estonia) applied for support for the implementation of the so-called the second stage of synchronization. It includes construction of the Harmony Link, an undersea connection between Poland and Lithuania. The funds will also be allocated to synchronous condensers, development of the transmission infrastructure and IT systems that will allow connecting the Baltic States with the Continental Europe system.

Four countries applied for funding for projects totaling EUR 1.2 billion, of which Lithuania for EUR 462 million, Latvia EUR 100 million, Estonia EUR 111 million and Poland EUR 521 million. European Union funds are one of the necessary elements of the Baltic States synchronization project.

CEF is an EU instrument for implementing investments of European significance. In 2018, Lithuania, Latvia and Estonia, as part of a joint application, received EUR 323 million from CEF for the development of transmission networks. In 2019, PSE and Litgrid received EUR 10 million in funding from this instrument for the preparation phase of the Harmony Link project. Further support from the CEF mechanism for the synchronization program will provide support of historical significance for the Baltic electricity markets.

In addition to building new infrastructure between countries, the implementation of the second phase of synchronization will contribute to strengthening the integration of electricity markets in the region and creating new opportunities for their participants. Synchronization is also important from the point of view of developing a common European electricity market and increasing energy security in the region.

The synchronization of the Baltic State's power systems with the Continental Europe system is planned in 2025.

Source: https://www.pse.pl