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Published: 9/11/2018. Updated: 9/11/2018

The Lithuanian, Latvian and Estonian national regulatory authorities on 6 September 2018 signed cross border cost allocation (CBCA) agreement


On 31 August 2018 National Commission for Energy Control and Prices approved the Lithuanian electricity transmission system operator's Litgrid investment into the Project of Common Interest (PCI) No. 4.8. Integration and synchronization of the Baltic States'
electricity system with the European networks Phase 1. The  Lithuanian part of the project's first stage will cost 167,045 million euros. The total cost of the first stage, including the Latvian and Estonian parts, will stand at 432,55 million euros.

The Lithuanian, Latvian and Estonian national regulatory authorities on 6 September 2018 signed cross border cost allocation (CBCA) agreement and agreed that no compensation between Baltic States and from other countries is required. Based on this conclusion the efficiently incurred investment costs in Lithuania shall be allocated to Lithuania, costs in Latvia shall be allocated to Latvia and the costs in Estonia to Estonia.

The Baltic transmission system operator will submit a joint application for Connecting Europe Facility funding by 11 October 2018. The project promoters will have opportunity to received financial support from European Union to cover part of the project's costs.

The synchronization project is scheduled to be completed by 2025. The Baltic grids are still part of the post-Soviet BRELL ring, which also includes Russia and Belarus, and remain dependent on Russian electricity system.