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EU’s INEA signs grant agreement for Baltic Synchronisation project [free access]

January 4, 2021

The European Union’s (EU) Innovation and Network Executive Agency (INEA) has signed a grant agreement releasing EUR720 million from the Connecting Europe Facility (CEF) for the second and final stage of the Baltic Synchronisation project.


As reported, this is the largest CEF energy grant ever awarded, and will be decisive for completing the synchronisation of the Baltic States' electricity grid with the Continental European Network (CEN).


The newest grant signed covers 75 per cent of the investment costs and supports the second phase of the project.          This stage includes the construction of a new subsea high voltage direct current (HVDC) interconnector between Lithuania and Poland (Harmony Link), synchronous condensers, reinforcement of the national grids, and the upgrade of information technology (IT) control systems.


Earlier in March 2019, the three Baltic States and Poland signed a grant agreement worth EUR323 million, with INEA for Phase I of the project. The latter includes the upgradation and reinforcement of the domestic transmission network of the three Baltic States by 2021. Moreover, in December 2019, PSE and Litgrid were granted EUR10 million by CEF for the preparatory phase of the Harmony Link.


Once Phases I and II are complete, Lithuania, Latvia and Estonia will be ready to operate in synchronous mode with CEN. This will ensure greater security of supply for consumers in the Baltics, while also enabling other Member States to benefit from renewable power produced in Estonia, Latvia and Lithuania.