Construction, Energy, Energy Market, EU – Baltic States, Financial Services, Funds

CEF Coordination Committee has decided to allocate the maximum co-financing of EUR 720 mln for the main synchronization projects: synchronous compensators in the Baltic countries, modernization of Polish power grid, and construction of Harmony Link from Lithuania to Poland

"Together with our Baltic and Polish colleagues, we have achieved the maximum result. By investing European funds in synchronization of the power grids, Augstsprieguma Tikls will not have to invest its own funds, which could affect transmission tariffs in the future," said Augstsprieguma Tikls CEO Varis Boks.

The CEF co-financing is one of the preconditions so the Baltic power grids could be synchronized with European power grids via Poland already in 2025.

In total, the four transmission system operators - Poland's PSE, Lithuania's Litgrid, Estonia's Elering and Latvia's Augstsprieguma Tikls - have received about three-quarters of the total CEF budget for energy projects this year, which is EUR 998.3 million. Together with the CEF co-financing for the first stage of the synchronization project in the amount of EUR 324 million, the EU support for synchronization of the Baltic power grids has already exceeded EUR 1 billion, a record support for a single project on the European scale.'

The total cost of the second stage of the synchronization project is estimated at around EUR 1.2 billion, of which EUR 521 million is to be invested in Poland, EUR 462 million in Lithuania, EUR 100 million in Latvia and EUR 111 million in Estonia.