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Synchronisation of the power system of the Baltic States with the network of Central Europe enters second stage

On 27 April 2020, the energy regulators (the Competition Authority in Estonia) of the Baltic States and Poland signed an agreement which approves the second stage of the synchronisation of the Baltic States’ power systems with the network of Central Europe. The project is coordinated by the Estonian Competition Authority.

The agreement grants approval for 1.2 billion euros of investments in the second stage of the project, of which Estonia’s share constitutes 110.6 million euros.

The decision of the Estonian state concerning the second stage of the project was approved by the Competition Authority on 8 May 2020 and published on the Competition Authority's website on 15 May 2020 » (239.21 KB, PDF).

The disconnection of the power networks of the Baltic States from Russia’s power system and their integration in the European Union’s power system is a strategic goal and priority of the European Union’s energy policy. This will complete the transition of the Baltic States’ power networks to full cooperation with European power networks, which will ensure better long-term security of power supply and energy security for Estonia, reduce our dependence on third countries and contribute to a faster development of and fairer competition on the electricity market.

The project is an exceptionally large one and will significantly impact transmission tariffs in the states involved. As the project is of strategic importance in the context of the European Union’s energy policy and will greatly facilitate the development of the power systems and electricity market of the Baltic region, it is likely that the project will be financed from the EU budget (Connecting Europe Facility) to the extent of 75%. In such case, its effect on consumers will be marginal and will not exceed four per cent. 

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