New Baltic Sea interconnector on horizon as Lithuania, Latvia, and Germany plan cross-border link

February 25, 2026, by Adrijana Buljan

Lithuania, Latvia, and Germany are planning a joint offshore interconnector that would enable electricity trading between the Baltic countries and Germany and allow for the integration of up to 2 GW of offshore wind capacity in Lithuania and Latvia.

Photo source: Latvian Ministry of Energy

The energy ministers of the three countries signed a joint declaration of intent on February 18, paving the way for the development of the Baltic-German PowerLink interconnector, which would, in addition to electricity trading and offshore wind capacity integration, also enable the expansion of onshore renewable energy capacity.

The Lithuanian, Latvian, and German transmission system operators (TSOs) – Litgrid, Augstsprieguma tīkls and 50Hertz – agreed to assess the feasibility of the hybrid electricity interconnection.

The three TSOs last year submitted a joint application for the inclusion of the interconnection, then 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 project concept developed by the TSOs includes a 2 GW, approximately 600 kilometres long hybrid offshore connection, with the connection point in the Baltic States planned to be on the border between Lithuania and Latvia. The exact location is to be determined after technical studies.

Under the joint declaration, it was agreed that Lithuania, Latvia, and Germany would continue to support studies carried out by transmission system operators and other institutions, including cost-benefit analyses, the development of financing models, and technical solutions.

Based on the results of the preliminary studies, consideration will be given to applying for the status of a Project of Common Interest (PCI) in the EU and to applying for EU funding for the implementation of detailed studies. There is also a possibility that other EU countries in the Baltic Sea region will join the project in the future, according to a press release from the Latvian Ministry of Energy.

Decisions on the next steps of the Baltic-German PowerLink project are planned to be made by the end of the third quarter of 2026, while the interconnector, if given the go-ahead, is planned to be completed in 2037.