Cooperation, Energy, Energy Market, EU – Baltic States, Good for Business

Under the agreement, which was signed on Thursday, investment costs incurred by a Baltic country will be covered by that country's transmission system operator, the National Commission for Energy Control and Prices said.

The total value of investments by the Baltic countries will amount to 432.55 mln euros, including 167.045 mln euros by Lithuania.

The investments cover the first of the synchronization project's three phases. Separate decisions will be made on investments in phases two and three.

The agreement is one of the requirements to be met as the countries' power transmission system operators prepare to apply for EU co-funding for the investment project.

Lithuania's Litgrid, Latvia's AST and Estonia's Elering will by October 11 submit a joint application for funding under the Connecting Europe Facility (CEF). According to the Lithuanian regulator, "the maximum percentage of co-financing for projects of common interest is 75%".

Litgrid has said that the synchronization project, which is expected to be completed in 2025, is likely to cost around 1 billion euros in total.

The plan is to use the existing double-circuit, alternating current LitPol Link between Lithuania and Poland and an additional submarine direct current, asynchronous power interconnection.

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.