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

The Commission has allocated 720 mln euros for the second stage of the synchronization project, including 301 mln euros for Lithuania.

“This support is truly unprecedented, not a single project has ever been granted such level of support from the CEF (Connecting Europe Facility) until now. Also, it is extremely pleasing that we have got the support of such intensity – at the maximum co-financing rate of 75%,” the minister said at a news conference on Friday.

The application filed by the Baltic countries had earned the best scores and therefore the Commission applied the maximum rate of co-financing of 75%, the minister said.

Pursuant to the decision of the CEF Coordination Committee, the overall amount of 720 mln euros includes 493 mln euros earmarked for the construction of Harmony Link, a 700 MW submarine HVDC cable that will connect Lithuania and Poland, and 166.5 mln euros for the construction of synchronous compensators in Lithuania, Latvia and Estonia. The remaining amount would be used for the upgrades and development of the networks necessary for the operation of Harmony Link.

Funding for the projects implemented in Lithuania will amount to 301 mln euros.

The financing agreement should be signed next year, the minister said.

The Baltic and Polish power transmission system operators filed a joint 1.22-bn-euro application to the European Commission for the funding of the second stage of the synchronization project in May.