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2020-12-14

TSO’s of Baltic Countries and Poland Signed the Grant Agreement for the Second Phase of Synchronisation

Elering, AST, Litgrid and PSE, the electricity transmission system operators (TSOs) of the Baltic countries and Poland, signed the grant agreement today with the Innovation and Networks Executive Agency (INEA) for the funding of the second phase of the Baltic synchronisation project. 719.7 million, provided from the Connecting Europe Facility (CEF), will ensure the smooth implementation of infrastructure projects, allowing Estonia, Latvia and Lithuania to start operating in synchronous mode with Poland and other continental European countries by the end of 2025.
 
The Coordinating Committee of CEF agreed to support the key second stage projects of the Synchronisation Project with the maximum possible intensity of 75%.
The major share, € 493 million, is reserved for the construction of the Harmony Link interconnector between Lithuania and Poland, while € 166.5 million will be allocated to finance the installation of synchronous condensers in Estonia, Latvia and Lithuania. The remaining part is awarded for the modernization and development of the internal transmission grid in Poland, required for the integration of the Harmony Link interconnection.
 
By signing the grant agreement, TSOs from the Baltics and Poland receive almost three-quarters, of this year's total CEF budget for energy projects, which is € 979.6 million.
 
Including the previous € 323 million EU support for the first stage of synchronisation, the programme has already exceeded € 1 billion in attracted EU funding. The first phase, which is currently being implemented, focuses on strengthening local grids of the three Baltic countries. The total sum stands as a record amount of support among all EU-funded energy projects.
 
“Up until now, the European Commission had no history of financial support of similar size to the energy sector. The agreement we signed today among 4 TSOs and INEA is a multilateral commitment. Initially, it serves as a proof of how the core institutions of the EU value the Baltics' ambition for energy independence. By signing this agreement, the quartet of TSOs is promising to fulfil our end of the contract by implementing synchronisation successfully and in time”, Vidmantas Grušas, acting CEO of Litgrid says.
 
The Synchronisation Project is important for the full integration of the Baltic countries in the common European electricity market, ensuring secure electricity transmission. Currently, Estonia, Latvia and Lithuania are still part of IPS/UPS synchronous area. The integration of the Harmony Link interconnection is also expected to induce closer economic cooperation.
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