Lithuania, Latvia, Germany agree to assess feasibility of offshore power link

VILNIUS - Lithuania, Latvia and Germany have agreed to assess the feasibility of an offshore electricity link, the Lithuanian Energy Ministry said on Wednesday.

The energy ministers of the three countries signed a declaration of intent in Paris on cooperation in developing cross-border electricity transmission infrastructure, the ministry said.

The declaration provides for a feasibility assessment of the planned hybrid interconnection Baltic-German PowerLink, to be developed jointly by Lithuania's Litgrid and the Latvian and German transmission system operators.

"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," Lithuanian Energy Minister Zygimantas Vaiciunas said.

The interconnector would link Germany and the Baltic states and enable the expansion of renewable power generation.

The declaration says such hybrid links in the Baltic Sea region could deliver multilateral benefits, generate positive socioeconomic effects, reduce dependence on fossil fuels and help ensure competitive electricity prices.

The three countries agreed to continue supporting studies by transmission system operators and other institutions, including cost-benefit analyses, financing models and technical solutions.

Based on preliminary studies, they will consider applying for European Union Projects of Common Interest status and seeking EU funding for detailed studies.

The declaration also leaves open the possibility for other EU Baltic Sea countries to join the project.

Decisions on the next steps in the Baltic-German PowerLink project are expected by the end of the third quarter of this year.

Last spring, the transmission system operators of Lithuania, Latvia and northeastern Germany - Litgrid, Augstsprieguma Tikls and 50Hertz - submitted a joint application to include a hybrid offshore electricity interconnection, then known as Baltic Hub, in ENTSO-E's 2026 Ten-Year Network Development Plan (TYNDP). The planning process includes an EU-level assessment of market impact and security of supply, laying the groundwork for possible EU funding.

The project concept envisages a roughly 600-kilometer, 2-gigawatt hybrid offshore link.

The Baltic-side connection point would be located on the Lithuania-Latvia border, with the exact site to be determined following technical studies.

The project could be completed in 2037.

The Energy Ministry said the link would enable electricity trade between the Baltic states and Germany, allow the integration of up to 2 gigawatts of offshore wind capacity in Lithuania and Latvia, support onshore renewables and improve supply reliability in all three countries.