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“This support is truly unprecedented, no project has received such support from the CEF fund yet. It is also very gratifying that we have the support of such funding intensity, a maximum of 75%. The funding intensity is allocated to synchronization projects. “, – Ž.Vaičiūnas spoke at the press conference on Friday.
According to him, the application from the Baltic States was evaluated by the Commission with the highest scores, resulting in a maximum funding intensity of 75%.
“Evaluating the last two years, more than one billion euros will already be allocated (for synchronization – BNS). It is important that this financial support ensures the implementation of critical infrastructure (…) This project has been politically supported many times before, today we also see that it is supported financially, ”said Ž.Vaičiūnas.
Of the European infrastructure networks Connecting Europe Mechanism, CEF) The Coordination Committee, which brings together representatives of all the countries of the European Union (EU), has allocated 720 million euros. € 493 million was allocated for the construction of the Lithuanian-Polish maritime connection Harmony Link. 166.5 million euros for the installation of synchronous compensators in Lithuania, Latvia and Estonia. euros. The remainder will be used to upgrade and expand the networks required by Harmony Link.
The amount allocated for the financing of projects executed in Lithuania will reach 301 million. euros.
The 2020 call for CEF energy projects contributed 980 million euros. euros. Almost three-quarters of the amount is just for timing.
“The request from the Baltic States and Poland was 915 million. In this case, more than 70% went to this project. All this stage of financing the CEF, it is probably necessary to thank not only the Baltic States, but first place to the European Union for solidarity (…) The rest will be provided for other stages of CEF funding, that is, next year and next, ”said Ž.Vaičiūnas.
Žygimantas Gedvila / 15min photo / Žygimantas Vaičiūnas
The European Commission received a total of 28 applications. The Baltic application was evaluated with the highest score of all those submitted.
Daivis Virbickas, head of the electricity transmission system operator Litgrid, stated that the EC considers the decision to allocate the maximum amount to be a serious commitment to carry out all projects well and on time.
“Together with the Polish operator, we are carrying out preparatory work for the Harmony Link connection, and we have already announced a tender for synchronous compensators,” Virbickas said in a statement.
Polish climate minister Michal Kurtyka said Poland supports the synchronization efforts of the Baltic countries.
“I assure you that Poland supports these efforts. With the help of Harmony Link, with the largest support from CEF in history, we are all involved in improving energy security in the region. I also believe that in the COVID-19 pandemic, we need joint action and strengthen the economic potential of the EU more than ever, “said Kurtyka at the press conference.
Ž.Vaičiūnas stated that the financing agreement should be signed next year.
“It just came to our attention then. This is more or less a classic standard that should also be upheld in this case. But this is more of a job for lawyers (…) We hope it probably will be early next year as well.” Ž.Vaičiūnas said.
The total number of electricity transmission system operators in Lithuania, Latvia, Estonia and Poland is 1.22 billion. In May of this year an application for 1 million euros was submitted. The request to finance the remaining smaller works – about 240 million. it will be provided in the next CEF call.
Ž.Vaičiūnas does not rule out the possibility of the Baltic states preparing for synchronization, Harmony Link will point out. May before the current deadline.
“The deadline for synchronization is 2025.” The readiness of our systems in the Baltic states without the Harmony Link project can, of course, be guaranteed a little earlier, “said the minister.
Litgrid CEO D.Virbickas said that the Harmony Link connection will help the market integrate even more deeply.
“From the beginning, all the current bandwidth of LitPol Link (connection to Poland – BNS) will be used to provide reliability, backup and other system services, but Harmony Link will not only maintain the existing bandwidth with Poland, but also it will even increase it. ” she said at the conference.
D.Virbickas did not begin to predict the impact of the new connection on the price of the electricity market, but competition, according to him, will increase.
“The competition will definitely increase, because the market opportunities with Poland will increase by 200 MW immediately, and in the future we will look, maybe we will find more opportunities.” Here is the answer: it will have a positive effect (future market price – BNS). If it makes sense to build NordBalt 2 after that, we’ll live, we’ll see, ”said D. Virbickas.
Ž. Vaičiūnas added that it is very important to forecast changes in the market itself and the rapid development of renewable energy. According to him, with the construction of Harmony Link by 2025, “we will have a completely different market situation, significantly more renewable energy in Lithuania.”
In 2019, the EC allocated 323 million LTL for the first stage of synchronization. of which 125 million euros for the renovation and strengthening of the Lithuanian electricity system. euros. A maximum of 75% is also allocated to projects. intensity of CEF support.
Until now, Lithuania, Latvia and Estonia, together with Russia and Belarus, operate in the so-called BRELL ring, where the frequency of electricity is centrally regulated in Russia.
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