Energy, EU – Baltic States, Financial Services, Funds, Lithuania

The minister said this marks the highest amount of funding ever provided under the Connecting Europe Facility (CEF) to a Lithuanian energy project. 

"This is very good news for Lithuania and all Baltic states. First, it is good news emotionally, because the proposed support is the highest ever CEF funding," Vaiciunas told reporters. 

"Second, this is important news in practical terms. This means not only that we are starting to actually implement synchronization projects, but also that we will have the maximum possible 75% EU funding," he said.  

"Third, it is an important message politically. This marks the launch of the implementation of the synchronization project." 

The EU money will be used to reinforce domestic electricity networks to prepare them for synchronization, the minister said, adding that an application for CEF funding for the second stage of the project is likely to be submitted next year. 

"Preparatory work on a marine cable is getting underway right now and we'll submit an application for feasibility studies in the spring. An application for works would probably be submitted next year," Vaiciunas said. 

"In terms of price, this is a key part, because the marine cable should cost from 500 mln to 600 mln euros," he said.

The minister added that the maximum 75% rate of EU funding will be sought for this stage of the project as well. 

The European Commission has approved 323 million euros in funding for the first stage of the Baltic power grids' synchronization project, covering around 75 percent of the total estimated cost of 432.5 mln euros.

Some 125 mln euros will go to Lithuania, where the total value of works is estimated at 167 mln euros.  

Under the approved scenario, the synchronization will take place via the existing Lithuanian-Polish LitPol Link and a new submarine cable between the two countries, as well as additional infrastructure. The synchronization project is estimated to cost up to 1.5 bn euros in total.

The Baltic grids are still part of the post-Soviet BRELL ring, which also includes Russia and Belarus, and remain dependent on the control center in Moscow and the Russian electricity system.