News & events

2022-06-07

Transmission system operators from Estonia, Latvia, Lithuania, and Poland signed the agreements in the framework of CEF program for the synchronization Phase 2 part II projects

 
 
The Baltic states’ and Polish transmission system operators have signed a financing agreement with the European Climate, Infrastructure and Environment Executive Agency (CINEA). €170 million has been allocated for projects to synchronise the Baltic states with the continental European grid, according to “Litgrid”, the Lithuanian electricity transmission system operator.
 
This is the third part of funding. Total European Union funding for synchronisation has reached €1.2 billion. These funds will ensure the continued smooth implementation of key infrastructure projects and allow the Baltic states’ electricity systems to start operating independently on the same frequency as Poland and the rest of continental Europe no later than 2025.
 
“Synchronisation will ensure energy security in the region as the Baltic states disconnect from the Russian-controlled energy system and start to manage the frequency of the electricity system on their own, working together with European partners. This is an important project not only for us, but also for Europe as a whole, as we have seen once again with the maximum possible support, which will amount to almost three-quarters of the funds needed to connect the Baltic states. At the same time, this is an example of productive cooperation between “Litgrid” and our partners: we are doing our utmost to achieve a common goal - to ensure that the synchronisation will be implemented smoothly and on time,” says Rokas Masiulis, the CEO of “Litgrid”.
 
Last autumn, the Baltic states’ and Polish transmission system operators “Litgrid”, “AST”, “Elering” and “PSE” submitted a joint application for additional funding to the Connecting Europe Facility (CEF) for the second part of Phase II of the Baltic states’ synchronisation with the continental European grid.
 
The joint Baltic states’ and Polish operators’ application is one of the five projects to receive CEF support in the field of trans-European energy infrastructure. The application was fully compliant and received the highest marks. A total of 12 applications were submitted to the call for CEF funding for energy projects.
 
Additional funding is allocatd for the second part of Phase II of the synchronisation of the Baltic states with the continental European grid. The four countries are investing in projects with a total value of €227 million, of which the CEF reimburses the maximum reimbursable amount of €170.2 million. The value of the Lithuanian projects is €40.9 million, Latvia - €49.5 million, Estonia - €36.6 million and Poland - €100.0 million. The funds are allocated to network upgrades, frequency management equipment and information systems projects.
 
The Lithuanian part of the funding is allocated to four “Litgrid” projects - the construction of the Darbėnai substation, the reconstruction of the 330 kV Klaipėda-Grobinė overhead transmission line on the border with Latvia, information technology systems for electricity transmission, and the information technology systems for the Lithuania-Sweden “NordBalt” electricity interconnector.
 
Previously, applications for synchronisation projects were submitted to the CEF and approved in 2019 and 2020. To date, the Baltic states and Poland have received more than €1 billion to modernise their national electricity grids, to build the “Harmony Link” offshore electricity link and to install synchronous compensators in the Baltic states.
 
The development of additional infrastructure between the countries foreseen in the second phase of synchronisation will increase energy security in the region and create new opportunities for energy market players, while boosting the functioning of the European internal market. Expansion will also help ensure economic growth and create new business opportunities.
 
The CEF is the European Union's main funding instrument for stimulating growth, jobs and competition through targeted investment in infrastructure in Europe. It supports the development of a highly efficient, sustainable and effectively interconnected European energy network.
 
Currently, about 45% of all synchronisation work in Lithuania has been completed and 6 synchronisation projects have been implemented.  This is the 330 kV Bitėnai transformer substation extension, construction of the 110 kV Pagėgiai-Bitėnai line, reconstruction of the 330 kV Lietuvos elektrinė-Vilnius line, extension of the “LitPol Link” and testing of an emergency connection to the Polish electricity system, and the optimisation of the North-Eastern Lithuania transmission network.
 
In total, the Action and Measures Plan for the Implementation of the Power System Synchronisation Project and the Strengthening of the Security and Reliability of the Electricity System, approved by the Government, mentions 19 projects (including 15 projects of special national importance), which include the strengthening of the country’s electricity grid, the construction and development of interconnections with Poland, and the installation and testing of the necessary infrastructure and systems.
 
To date, Lithuania, Latvia and Estonia, together with Russia and Belarus, operate in an IPS/UPS system where the electricity frequency is centrally regulated in Russia. Connection to continental European grids and synchronous operation with Poland, Germany and other continental European countries will be secured no later than 2025