The Connecting Europe Facility (CEF) is an important financial instrument of the EU to support targeted infrastructure investments at European level. On 1 October 2020, the coordination committee of the CEF decided to allocate €719.7m for investment in electricity transmission infrastructure in Poland, Lithuania, Latvia, and Estonia. The granting follows an application for funding submitted at the end of May this year by the national transmission system operators (TSOs) of the three Baltic States and by PSE, the Polish TSCNET shareholder.
Harmony Link, which is to be the second interconnector between Poland and Lithuania, particularly benefits: €493m will be directly allocated to the project. Further funding is intended for the upgrading of infrastructure required for the integration of Harmony Link and for the installation of synchronous compensators in the Baltic States.
The first Polish-Lithuanian interconnector is LitPol link, an overhead line connecting the PSE substation in Elk and the Lithuanian Alytus substation, which has been in operation since 2016. Harmony Link is implemented in a different technical way, as a high voltage direct current (HVDC) submarine cable bypassing the Curonian Lagoon and the Gdańsk Bay. The new Polish-Lithuanian interconnector is crucial to enable the synchronisation of the Baltic electricity area with the Continental European (CE) area – an important objective in the framework of the European Energy Union to create a common European electricity market. It will also support regional and supra-regional supply security.