Germany, Latvia, and Lithuania are planning a joint cross border European electricity transmission project in the Baltic Sea. The Baltic-German PowerLink is intended to connect the three countries, as well as offshore wind farms off the Baltic coast and thus contribute to strengthening security of supply and energy sovereignty. The transmission system operators 50Hertz (Germany), AST (Latvia), and Litgrid (Lithuania) have been commissioned to develop a technical and economic implementation concept by autumn, thereby fulfilling the EU’s requirements for funding as a project of common interest (PCI).
A corresponding joint declaration of intent (JDoI) has been signed by the German Federal Minister for Economic Affairs and Energy, Katherina Reiche, and her counterparts from Lithuania, Žygimantas Vaiciunas, and Latvia, Kaspars Melnis, on the sidelines of a ministerial meeting of the International Energy Agency (IEA) in Paris.
They jointly emphasised that hybrid electricity connections – which serve both as interconnectors for European electricity trading and as grid connections for offshore wind farms – can offer a number of advantages for the participating countries. These include competitive electricity prices and reduced dependence on fossil fuels through the use of renewable energy sources.
To create a shared understanding of the technical and economic feasibility and the distribution of costs and benefits, the project has been submitted for inclusion in the European Ten Year Network Development Plan (TYNDP). Within this framework, in depth analyses of the impacts on the EU electricity market, on security of supply, and on the need for EU project funding are possible. A decision on the next steps in the project is expected at the end of 2026.
According to previous studies and preliminary planning by 50Hertz, AST and Litgrid, the Baltic-German PowerLink will consist of an approximately 600 km submarine cable connection between Germany and a landfall point either in southwest Latvia or northwest Lithuania. A power hub is planned to be built onshore, through which around 2 GW of offshore wind capacity can be fed both towards Germany via the Baltic-German PowerLink and into the high voltage grids on land operated by AST and Litgrid.
Stefan Kapferer, CEO of 50Hertz, said: “The Baltic countries have great potential to generate more electricity from onshore and offshore wind than they need to meet their own demand. This project can help Germany gain access to cost efficient renewable electricity generation and enable Baltic electricity markets to move closer to the continental European market with its high liquidity.”
Arnis Daugulis, Member of the Management Board AST, added: “The share of renewable resources in the overall energy balance is increasing year by year, and our forecasts indicate that within just a few years the Baltic region will shift from being an importer of electricity to becoming an exporter. Therefore, it is important to plan the export routes for this energy in a timely manner, also considering the potential of offshore wind farms. The strategic objective is that the hybrid interconnection will enable electricity flows in both directions, benefiting both producers and consumers in Latvia and the Baltics, and strengthening energy supply security.”
Paulius Kozlovas, Head of Strategy Litgrid, concluded: “A high capacity route for renewable electricity across the Baltic Sea represents a significant step toward deeper market integration and a more resilient European power system. Our immediate priority is to define the project’s technical and economic parameters with maximum precision. This will enable informed decision making and ensure smooth progress into the next development stages.”
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