Baltic-Germany PowerLink: 2 GW Offshore Wind Interconnector Planned

Baltic Sea to Gain New Interconnector Linking Lithuania, Latvia, and Germany

February 25, 2026 – Lithuania, Latvia, and Germany are moving forward with plans to construct a major offshore electricity interconnector, the Baltic-German PowerLink, designed to facilitate energy trading and integrate up to 2 gigawatts (GW) of offshore wind capacity in Lithuania and Latvia. The project, formalized through a joint declaration of intent signed on February 18, also aims to bolster the expansion of onshore renewable energy sources.

The initiative involves the transmission system operators (TSOs) of the three countries – Litgrid (Lithuania), Augstsprieguma tīkls (Latvia), and 50Hertz (Germany) – who have agreed to assess the feasibility of the hybrid electricity interconnection. Last year, the TSOs jointly applied for the inclusion of the project, initially known as the Baltic Hub, into the 2026 Ten-Year Network Development Plan (TYNDP) of the European Network of Transmission System Operators for Electricity (ENTSO-E).

The Baltic-German PowerLink, as currently conceived, will be approximately 600 kilometers long and capable of transmitting 2 GW of electricity. The connection point within the Baltic States is planned to be located on the border between Lithuania and Latvia, though the precise location will be determined following detailed technical studies.

According to the joint declaration, Lithuania, Latvia, and Germany will continue to support studies conducted by the TSOs and other relevant institutions. These studies will encompass cost-benefit analyses, the development of viable financing models, and the exploration of optimal technical solutions. The governments are also considering applying for Project of Common Interest (PCI) status within the European Union to secure EU funding for more in-depth studies.

The potential for other EU countries in the Baltic Sea region to join the project in the future is also being explored. A decision regarding the next steps in the Baltic-German PowerLink project is anticipated by the end of the third quarter of 2026. If approved, the interconnector is currently slated for completion in 2037.

The interconnector is expected to not only enable electricity trading between the Baltic countries and Germany but also support the integration of significant offshore wind capacity in Lithuania and Latvia, alongside further development of onshore renewable energy resources. This aligns with broader European efforts to enhance energy security and transition towards a more sustainable energy future.

The project represents a significant step towards strengthening energy infrastructure in the Baltic Sea region and fostering greater energy independence for the participating nations. The hybrid nature of the connection – serving both as an interconnector and a grid connection for offshore wind farms – is seen as a key advantage, offering competitive electricity prices and reducing reliance on fossil fuels.