Germany, Latvia and Lithuania are planning a joint cross-border electricity project in the Baltic Sea.
The transmission system operators 50Hertz, AST and Litgrid were commissioned to develop a technical and economic implementation concept for the Baltic-German PowerLink by autumn, said the three parties.
A memorandum of understanding was signed by German federal minister for economic affairs and energy Katherina Reiche and her Lithuanian and Latvian counterparts Žygimantas Vaičiūnas and Kaspars Melnis on Wednesday in Paris.
They emphasised that hybrid electricity connections serving both as interconnectors and as offshore grid links can deliver competitive power prices and reduce dependence on fossil fuels.
The project has been submitted for the European Ten-Year Network Development Plan, which allows analysis of impacts on the internal electricity market, security of supply and potential EU funding.
A decision on the next steps is planned for the end of 2026.
According to studies by 50Hertz, AST and Litgrid, the Baltic-German PowerLink consists of an approximately 600-kilometre submarine cable between Germany and a landing point in either southwest Latvia or northwest Lithuania.
An onshore electricity hub is planned there to feed around 2GW of offshore wind capacity into the link towards Germany and into the extra-high-voltage grids of AST and Litgrid.
Stefan Kapferer, CEO of Hertz, said: “The Baltic countries have great potential to generate more electricity from onshore and offshore wind energy than they need to meet their own needs. This project can help to give Germany access to cheap electricity generation from renewable energies and to bring the electricity markets of the Baltic States closer to the continental European electricity market with its high liquidity.”
Roland Irklis, chairman of the board AST, added: “The share of renewable resources in the total energy balance is increasing year on year, and our forecasts show that the Baltic Sea region will change from an electricity importer to an electricity exporter in just a few years. It is therefore important to plan the export routes for this energy in good time, also taking into account the potential of offshore wind farms. The strategic goal is for hybrid interconnectors to enable electricity flows in both directions, benefiting both producers and consumers in Latvia and across the Baltics, while strengthening security of supply.”
Paulius Kozlovas, head of strategy Litgrid, stated: “A high-performance line for renewable electricity through the Baltic Sea is a significant step towards greater market integration and a more resilient European energy system. Our priority is to define the technical and economic parameters of the project with the greatest possible precision. This enables informed decisions for a smooth transition to the next phases of development.”