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

The 323-mln-euro funding, which is the amount sought by the three countries, will be provided under the Connecting Europe Facility (CEF).

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

The Lithuanian government said this marks the highest CEF funding the country has ever received for an energy infrastructure project. 75% is the maximum possible rate of EU co-financing.

The EU's funding will be also sought for other synchronization projects, such as a submarine cable between Lithuania and Poland. Energy Minister Zygimantas Vaiciunas has told that an application for the second stage is to be submitted in the second quarter of 2019. 

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 in total. 

The Baltic regulatory authorities agreed last September that investments in the first stage of the project will amount to 432.55 mln euros, including 167.045 mln euros in Lithuania, around 77 mln euros in Latvia and some 187 mln euros in Estonia. 

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.