The Baltic states’ Synchronisation Project receives a record support


2020 10 02


On Thursday, the Steering Committee of the Connecting Europe Facility (CEF), which brings together representatives of all European Union (EU) states, approved the European Commission’s (EC) proposal to allocate EUR 720 million to support key projects in the second phase of synchronization. In total, the EU has spent more than EUR 1 billion on synchronization over two years.

For the largest synchronisations projects and the synchronisation projects the implementation of which has already been launched the EC has specified the maximum intensity financing, i.e. 75% or EUR 493 million for the construction of the Lithuanian-Polish maritime connection Harmony Link, EUR 166.5 million for the installation of synchronous compensators in Lithuania, Latvia and Estonia. The rest will be used to upgrade and expand the networks needed to integrate the Harmony Link connection. The amount allocated for the financing of projects implemented in Lithuania will reach EUR 301 million.

“EU funding for synchronization is the largest CEF support to date for an energy infrastructure project. This reaffirms European solidarity and the unprecedented support of the European Commission for this energy security project,” says Minister of Energy Žygimantas Vaičiūnas.

In 2020, the call for CEF funding for energy projects amounted to EUR 980 million. Almost three-quarters of this year’s CEF budget is dedicated to synchronization alone.

 In total, the European Commission received 28 applications for CEF funding needs. The application for the second phase of the synchronization project was rated with the highest score of all the submitted applications.

“We take the decision of the European Commission to allocate the maximum amount for the energy independence of the Baltic States as a serious commitment to carry out all the planned projects together with our regional partners in a good and timely manner. We are also carrying out the preparatory work for the second phase of synchronization smoothly through COVID: together with the Polish operator, we are carrying out the preparatory work for the Harmony Link connection, and we have already announced a tender for synchronous compensators,” says Daivis Virbickas, CEO of Litgrid.

 The joint application of the Lithuanian, Latvian, Estonian and Polish electricity transmission system operators was submitted in May this year. Its size is EUR 1.22 billion, and the requested amount of support for the most necessary projects - EUR 915 million.

The application for the financing of the remaining smaller-scale synchronization works, the value of which amounts to about EUR 240 million, will be provided in the next CEF call.

In 2019, the EC allocated EUR 324 million for the first phase of synchronization, of which EUR 125 million for the renewal and strengthening of the Lithuanian electricity system. A maximum of 75% intensity CEF support is also allocated to projects.