Baltic Nations and Germany Advance Plans for Major Energy Interconnector
Germany, Latvia, and Lithuania have signed a declaration of intent to jointly develop the Baltic-German PowerLink, a hybrid subsea electricity interconnector designed to enhance regional energy security and facilitate the integration of offshore wind power. The agreement, signed in Paris on , marks a significant step towards strengthening energy infrastructure in the Baltic Sea region.
The Baltic-German PowerLink aims to connect the electricity grids of the three nations via a subsea cable, enabling cross-border electricity trading and supporting the expansion of renewable energy generation. The project currently envisions a 2 GW hybrid offshore interconnection spanning approximately 600 kilometers. The planned connection point within the Baltic States is anticipated to be located near the Lithuania-Latvia border, with a precise location to be determined following detailed technical studies.
According to the declaration, the development of similar hybrid electricity connections in the Baltic Sea region could yield substantial multilateral benefits and positive socio-economic effects for participating countries. It is also expected to reduce reliance on fossil fuels and contribute to competitive electricity prices.
Lithuanian Energy Minister Žygimantas Vaičiūnas emphasized the importance of the project, stating, “Lithuania, Latvia, and Germany are cooperating intensively not only in the field of defense, but also in the field of energy. The possible new hybrid offshore interconnector project would significantly expand the electricity export opportunities of Lithuania and Latvia, creating the conditions for greater renewable energy development and energy security.”
The transmission system operators of Lithuania (Litgrid), Latvia (Augstsprieguma tīkls), and Germany (50Hertz) are collaborating on the project and will jointly assess its technical and economic feasibility. They will focus on cost-benefit analyses, financing models, and technical solutions. The countries will continue to support these studies, with decisions on the next steps planned by the end of the third quarter of .
The initiative builds upon a joint application submitted last spring by Litgrid, Augstsprieguma tīkls, and 50Hertz to include a hybrid offshore electricity interconnection – initially known as the Baltic Hub – in the 2026 Ten-Year Network Development Plan (TYNDP) of the European Network of Transmission System Operators for Electricity (ENTSO-E). The TYNDP process will involve a comprehensive EU-level assessment of the project’s impact on market dynamics and security of supply, potentially paving the way for future EU funding.
Beyond facilitating electricity trading, the Baltic-German PowerLink is projected to support the integration of up to 2 GW of offshore wind capacity in Lithuania and Latvia, alongside the expansion of onshore renewable energy sources. What we have is expected to enhance the reliability of electricity supply across all three countries.
The partners will consider applying for Project of Common Interest status within the European Union, which would make the project eligible for EU funding to support detailed studies and eventual implementation. The possibility of including other EU countries in the Baltic Sea region in the project at a later stage is being explored.
While a possible completion date for the Baltic-German PowerLink has been projected for , the project remains subject to ongoing assessments and approvals. The agreement signifies a commitment to closer regional energy cooperation and a shared vision for a more sustainable and secure energy future in the Baltic Sea region.
