European TSOs secure funding to finalise Baltic synchronisation project

Some four European transmission system operators (TSOs) operating in Poland, Latvia, Estonia and Lithuania have secured €170 million ($194.6 million) in funding from the European Union to implement phase two of their grid interconnection project.

PSE (Poland), AST (Latvia), Elering (Estonia) and Litgrid (Lithuania) will use the funding to implement their €230 million ($263.3 million) project which will include desynchronisation from the Russian and Belarussian grid.

The aim is for the four countries to synchronise with the Continental European Synchronous Area (CESA) to reduce reliance on the Russian and Belarussian grid whilst ensuring energy security.

Polish PSE will receive €102.7 million ($117.5 million), Latvian’s AST €49.5 million ($56.6 million), Lithuanian Litgrid €40.9 million ($46.8 million) and Estonia’s Elering AS €36.6 million ($41.9 million).

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The TSOs will direct the aid towards reinforcing their grids and improving frequency regulation and IT control systems.

The European Union’s coordinating committee of the key EU fund for infrastructure Connecting Europe Facility approved the funding following rating the project as of highest importance owing to its impact on economic growth and the energy transition.

In 2021, Estonia increased its renewable energy generation by 15.6% compared to 2020, by producing 2,578 GWh of clean capacity. The interconnector will enable Estonia for instance to share clean capacity with the other EU countries for the achievement of Fit for 55 and Green Deal energy decarbonisation goals.

To date, the TSOs received €1 billion in funding which has been directed towards the installation of submarine HVDC cable Harmony Link and synchronous condensers to allow power-sharing.

The synchronisation project is expected to be completed by the end of 2025.