Pattern Energy Group (Pattern Energy), a leader in clean energy and transmission infrastructure, has announced that the SunZia project, recognized as the largest renewable energy infrastructure project in U.S. history, has reached full operational status. The SunZia project is now capable of generating and delivering more electricity than the Hoover Dam while providing affordable and reliable energy to customers throughout the western United States.

Commenting on the milestone, Hunter Armistead, CEO of Pattern Energy, said, “SunZia proves that we can still build the consequential infrastructure this country needs.”

“We did this the right way, we did it on time and on budget – in genuine partnership with the local communities and landowners who trusted us, with the environmental stewardship this unique landscape deserves, and with the determination to see something through that many thought was too big and too complex to finish,” he added.

Adressing Rising Power Needs

The SunZia project consists of an approximately 3,650-megawatt (MW) wind project and a 550-mile high-voltage direct current (HVDC) transmission line. Together, these assets are generating and delivering affordable, American-made energy from New Mexico into Arizona and onward to customers connected to the western grid. Operating at full capacity, the facility can supply enough electricity to serve approximately one million American homes each year. The SunZia project is designed to address growing energy demand through new interregional transmission infrastructure capable of moving reliable and affordable power across long distances. In doing so, it tackles a key challenge facing the energy sector by combining large-scale energy generation with the transmission systems required to deliver that energy where it is needed.

Advanced Transmission Technology at Project Core

A central component of the SunZia project is its HVDC transmission network, which is engineered to transport significant volumes of electricity efficiently over extended distances. Converter stations located at each end of the transmission line convert electricity for transmission and then convert it back for use on the grid. Through this system, SunZia is deploying one of the first major HVDC systems constructed in the United States in a generation, creating advanced infrastructure intended to support large-scale power delivery.

Highlighting the broader significance of the development, Elliot Mainzer, President and CEO of the California Independent System Operator (ISO), said, “Projects of this scale help deliver energy reliably to areas of rising demand, improve the movement of power across states and support a more resilient, flexible and affordable electric system. SunZia represents the kind of long-term infrastructure investment needed to serve customers today and prepare the grid for the future.”

Economic Benefits and Community Investment

Construction activities on the SunZia project commenced in September 2023. At peak construction, the development supported more than 2,000 quality jobs. In addition, more than 100 permanent operations positions will be created across New Mexico and Arizona. The project is expected to invest over $20 billion in communities within those states, including $1.3 billion in direct payments to local governments, schools, counties and private landowners during the first 30 years of operation.

According to Pattern Energy, the fully contracted project progressed through extensive development, permitting, financing, construction and community engagement processes, requiring coordination among private companies, local governments, state and federal agencies, landowners and energy customers.

Opening the event, Mr. Orkhan Zeynalov, Deputy Minister of Energy of the Republic of Azerbaijan, articulated the critical importance of regional energy connectivity as a driver for economic advancement and sustainable development.

IsDB’s Vision for Optimized Energy Resources

Delivering a keynote address, Mr. Issa Faye, Director General of Global Practice and Partnerships at IsDB, elaborated on how robust regional energy interconnections empower countries to optimize their energy resources more effectively. He emphasized that such collaborations enhance the reliability of electricity supply, reduce costs, significantly support the integration of renewable energy sources, and cultivate more robust regional economic cooperation.

Expert Panel Discusses Landmark Projects and Lessons Learned

The forum included in-depth panel discussions moderated by Mr. Idrissa Dia, Director of the Economic and Social Infrastructure Department (ESID) at IsDB. The distinguished panelists included H.E. Mr. Yusuf Majidi, First Deputy Minister of Finance of the Republic of Tajikistan; Mr. Sherard Cowper-Coles, Vice President and Corporate Secretary at the Asian Infrastructure Investment Bank; Mr. Siegfried Leffler, Head of Operations at GIZ International Services; and Mr. Abdoulaye DIA, Secretary General of the West African Power Pool (WAPP).

These leaders shared invaluable insights from their involvement in major initiatives such as CASA-1000, the OMVG Interconnection Project, and the Rogun Hydropower Plant. Their contributions provided crucial lessons on project preparation, financing strategies, effective governance, comprehensive risk management, and the development of commercially viable regional electricity markets.

Benefits of Interconnected Power Systems

Participants universally acknowledged that interconnected power systems offer substantial advantages. These include improved energy security, substantial cost reductions, expanded access to reliable electricity, and a greater capacity for integrating renewable energy sources. The discussions also brought to the fore the critical need for enhanced regional cooperation and the vital role of initiatives like Mission 300 in addressing escalating energy demand and underpinning long-term economic transformation.

Call for Accelerated Collaboration and Key Priorities

The event concluded with a compelling call for intensified collaboration among governments, development institutions, utility providers, and regulatory bodies. The objective is to accelerate the development of regional energy corridors. Key priorities identified for future action include deepening market integration, strengthening regulatory cooperation, pioneering innovative financing mechanisms, refining risk-mitigation frameworks, and fostering greater coordination among all stakeholders.

The deliberations reaffirmed the IsDB’s unwavering commitment to advancing regional integration through the development of sustainable energy infrastructure, with the ultimate goals of promoting energy security, facilitating economic transformation, and fostering shared prosperity.

Under the draft plan, the transmission system operators (TSOs) submitted 159 proposed expansion measures. Following its evaluation, the Bundesnetzagentur has determined that 118 of those measures are currently eligible for confirmation. According to the agency, the remaining proposals do not presently make a sufficient contribution to the required upgrading of the transmission system. Of the measures under consideration, 76 are already included in the existing Federal Requirements Plan Act (BBPlG) or in the version currently undergoing revision. In addition, five projects initially scheduled only for the target year 2045 were reviewed against the requirements for 2037 and have been assessed as provisionally eligible for confirmation. These assessments form a central part of the broader electricity grid expansion strategy outlined in the draft plan.

The revised NDP also proposes up to eight additional offshore transmission links by 2037 to support the continued development of offshore wind energy. The Bundesnetzagentur considers these links necessary to meet the expansion targets established under the Offshore Wind Energy Act. Alongside these offshore developments, the consultation covers proposals for further interconnectors intended to strengthen the integration of the European energy supply network. It also includes plans for an additional high voltage direct current (HVDC) transmission line. Together, these proposals are intended to advance electricity grid expansion, improve cross-border connectivity, and support the future evolution of the electricity transmission system.

Considered one of the most substantial electricity transmission projects currently underway in Egypt, the Egyptian transmission project boasts total investments estimated to be between EGP 12 billion and EGP 14 billion. The project has been strategically divided into eight distinct segments, attracting competitive bids from a range of prominent local and international entities and consortia. The consortium, including Korra Energi, will be responsible for the execution of the first lot under the agreement, which spans approximately 45 kilometers and is valued at around EGP 788 million, along with an additional $14 million.

Furthermore, the third lot encompasses a route of roughly 52 kilometers, with a contract value of approximately EGP 875 million, supplemented by $15 million. Both segments are slated for completion within a one-year timeframe, commencing after the finalization of all contractual procedures. Upon its conclusion, this expanded network is projected to facilitate the integration of over 2 gigawatts of electricity generated from new wind power projects in the Gulf of Suez.

Ayman Korra, CEO of Korra Energi, said “Winning the contracts marks a new strategic step that strengthens Korra Energi’s position in the energy and infrastructure sector and confirms our ability to seize quality opportunities that support business growth and the expansion of our project portfolio.”

“The project directly supports the state’s direction towards expanding renewable energy projects by linking new wind energy projects to the national electricity grid, which enhances energy security, raises the efficiency of the electricity system, reduces energy transmission losses, and supports the achievement of Egypt’s goals in the field of clean energy and sustainable development,” he added.

The Project EnergyConnect is a substantial 900-kilometer high-voltage interconnector designed to link the electricity grids of New South Wales, South Australia, and Victoria. Its energization establishes a new crucial pathway for renewable energy to travel between these three key states. The project, with an estimated investment of $4.1 billion, has been widely described as essential infrastructure for bolstering energy security, reducing wholesale electricity expenses, and supporting the nationwide shift away from coal-fired generation.

Transmission operator Transgrid announced the energization, highlighting the project’s pivotal role in connecting designated renewable energy zones and strengthening the National Electricity Market. This new infrastructure spans from Wagga Wagga in New South Wales to Robertstown in South Australia, with a direct connection into Victoria near Red Cliffs. The extensive undertaking includes the installation of over 1,500 transmission towers, the construction of multiple substations, and the laying of hundreds of kilometers of new transmission infrastructure across regional Australia.

The genesis of Project EnergyConnect dates back to 2016, when ElectraNet first began exploring the possibility of a new interstate transmission link between South Australia and New South Wales. Transgrid and its delivery partner, Elecnor, recently celebrated the completion of construction at the Dinawan Substation near Bundure in the Riverina region of New South Wales, signifying the conclusion of one of the country’s most complex energy infrastructure builds.

The path to completion for this landmark infrastructure project was not without its difficulties. Initially approved in 2021 with an estimated cost of approximately $2.3 billion, the New South Wales section is now projected to exceed $4 billion. This escalation is attributed to a sequence of setbacks, including the termination of the original engineering, procurement, and construction contract, challenges related to labour availability, disruptions in supply chains, inflationary pressures, and adverse weather conditions. Despite these hurdles, the commitment to the energy transition Australia is pursuing remained a driving force.

These cost overruns have naturally led to scrutiny from regulators and significant electricity users, with ongoing discussions regarding the recovery of these additional project expenses. Nevertheless, energy market experts and government officials have consistently affirmed the project’s critical importance to Australia’s energy transition. This is particularly relevant as older coal-fired power stations are progressively retired and are replaced by renewable generation, which is heavily reliant on robust storage and transmission infrastructure, key components of the national electricity market.

The Australian Energy Market Operator has repeatedly underscored the delivery of transmission infrastructure as one of the most crucial factors in ensuring a reliable and affordable transition to a low-emissions electricity system. Once fully operational, the EnergyConnect interconnector will enable a more fluid flow of electricity between New South Wales, South Australia, and Victoria. This improved connectivity is expected to enhance grid reliability, foster greater competition among electricity generators, and mitigate the risk of supply shortages during periods of peak demand, further solidifying the nation’s energy security.

Furthermore, the project is anticipated to stimulate billions of dollars in new renewable energy investments by providing increased capacity for both wind and solar developments across regional New South Wales and South Australia. Transgrid projects that the interconnector will yield close to $1 billion in net economic benefits over its operational lifespan, stemming from reduced energy costs, enhanced reliability, and greater access to renewable energy resources. With the line now energized, the project is entering its final testing and commissioning phases before achieving full operational capacity. This development positions it as a new backbone for Australia’s rapidly expanding renewable energy network and one of the most significant pieces of energy infrastructure delivered in the nation’s history.

Addressing delegates at the opening session of the Asia Clean Energy Forum (ACEF) 2026 on 9th June 2026, ADB president Masato Kanda highlighted the limitations of isolated national energy systems in responding to today’s rapidly evolving global challenges. He pointed to heightened geopolitical uncertainty, including the continuing conflict in the Middle East, as a reminder of the need for stronger regional cooperation in energy infrastructure.

“We must build a power system that connects our economies, strengthens our resilience, and delivers energy across the region. Delay will mean higher prices, weaker growth, and lost opportunities for millions of people,” he said.

Electricity consumption across Asia and the Pacific is expected to almost double by 2030, driven by economic expansion, urbanization, broader electrification, and the growing presence of energy-intensive artificial intelligence (AI) data centers. Despite this rising demand, more than 350 million people across the region continue to experience limited access to electricity, while over 53 million people remain entirely without power.

To address these challenges, ADB is promoting the Pan-Asia Power Grid Initiative (PAGI), a program designed to link national and regional electricity networks and enable multilateral cross-border power trading. The initiative places regional power connectivity at the heart of the region’s long-term energy transition plans.

Kanda said, “PAGI is our answer to a fragmented world. It shifts Asia and the Pacific away from small-scale, bilateral projects and moves us toward coordinated, region-wide multilateral power trade. An interconnected regional system acts as a collective shield. It allows surplus clean energy generated in one country to seamlessly balance the deficit in another.”

The initiative was formally launched during the 59th ADB annual meeting held in Samarkand, Uzbekistan, in May 2026. Through PAGI, ADB aims to mobilize $50 billion by 2035 to support cross-border transmission projects and enhance regional energy security. Of this amount, the bank expects to contribute approximately $25 billion from its own resources.

Under the proposed framework, PAGI targets the construction of 22,000 circuit-kilometers (ckm) of cross-border transmission infrastructure. The initiative also seeks to integrate 20 gigawatts (GW) of renewable energy into a shared regional network, cut power-sector emissions by 15 percent, and generate around 840,000 jobs.

According to Kanda, projects such as the ASEAN Power Grid, South Asian interconnection initiatives, and the Caspian Green Energy Corridor illustrate the benefits of regional power connectivity, particularly in strengthening energy resilience, addressing supply disruptions, and expanding access to dependable and affordable electricity.

ADB is additionally preparing a $10-million technical assistance (TA) grant to facilitate the initial phase of PAGI. The funding will support project development, policy alignment, and the establishment of institutional mechanisms required to advance cross-border electricity trade. Kanda emphasized that government funding alone will not be sufficient to meet the scale of investment required.

To attract additional capital, ADB intends to raise annual private-sector financing commitments to $13 billion by 2030 while increasing the use of blended finance mechanisms, first-loss capital structures, and guarantee instruments. In 2025, the bank mobilized approximately $3.4 billion for energy-related projects and investments throughout the Asia-Pacific region.

The energy cooperation pact was formalized during a visit by a high-level Croatian delegation led by Prime Minister Andrej Plenković. North Macedonia’s Minister of Energy, Mining and Mineral Resources, Sanja Božinovska, and her Croatian counterpart, Minister of Economy Ante Šušnjar, signed the memorandum in Ohrid. This strategic alignment underscores a mutual understanding of energy’s critical role in both economic stability and geopolitical security, particularly in light of recent global events.

“Energy today is one of the most important strategic areas for Europe and the entire region,” Božinovska stated during the forum.

“The war in Ukraine, as well as the developments in the Middle East, have clearly shown that energy security is no longer just an economic issue, but also a geopolitical and security issue,” she added.

The cornerstone of the North Macedonia-Croatia energy cooperation pact is the exchange of knowledge and collaborative efforts in several key areas. These include strengthening energy security, developing robust regional interconnections, promoting the uptake of renewable energy sources, and fostering a transition towards low-carbon systems. Furthermore, the memorandum facilitates the integration of the electricity market and encourages convergence with European Union energy legislation.

The signing of the energy cooperation pact is testament to the friendly relations and enduring cooperation between North Macedonia and Croatia. It aligns with North Macedonia’s strategic objective of European Union membership and its obligations under the Energy Community Treaty. The pact represents a crucial step in the country’s gradual alignment with the comprehensive body of EU energy legislation.

Croatian Prime Minister Plenković highlighted the significance of energy as a primary concern for the EU, especially following several major crises in recent years. He expressed confidence that the new memorandum will significantly enhance the energy connections between the two nations.

Šušnjar further elaborated on Croatia’s ambition to establish itself as a regional energy hub, offering its experience in EU energy market integration to actively support North Macedonia’s European aspirations.

The agenda included expanding collaborative efforts in the development of renewable energy sources, the crucial modernization of power grids, enhancing energy efficiency measures, and fostering robust regional energy interconnections. This meeting underscored the already successful partnership between Azerbaijan and the World Bank, which spans diverse sectors from hydrocarbons to renewable energy projects. Both parties acknowledged substantial potential for further deepening this collaboration in the coming years. The achievements of Azerbaijan in the renewable energy sector within a compressed timeframe were highlighted as a testament to the ongoing energy sector reforms.

Emphasis was placed on the strategic importance of programs implemented by Azerbaijan, particularly those aimed at reinforcing the transmission grid, facilitating regional energy integration, and improving overall energy efficiency. In the context of evolving global energy challenges, the reliability of transmission grids and the seamless integration of renewable energy sources have emerged as paramount concerns. Azerbaijan’s proactive measures to expand and upgrade its transmission grid were recognized as a sound and forward-thinking strategic approach.

A detailed review was conducted of the progress under the “Strengthening the Transmission Grid” (AZURE) project, an initiative critical for the effective integration of renewable energy sources into the national grid infrastructure. Throughout the proceedings, considerable attention was devoted to Azerbaijan’s strategic vision for enhancing regional energy connections. Presenters provided updates on the ongoing feasibility study for the ambitious “Green Energy Corridor” project, which is planned to extend its reach towards the Black Sea and Eastern Europe.

Further discussions covered ongoing work related to projects on interregional energy interconnections, including the Azerbaijan-Central Asia and Azerbaijan-Georgia-Türkiye-Bulgaria corridors. The development of a power transmission line project originating from the Caspian region and destined for Nakhchivan and Türkiye was also noted as being in the implementation phase.

The potential for collaboration with the World Bank on energy efficiency projects utilizing the energy service company (ESCO) model was also thoroughly assessed. This model, which enables the private sector to generate revenue through demonstrable energy savings without direct government funding, was identified as a potentially beneficial framework for Azerbaijan’s economic and environmental objectives.

Furthermore, the meeting addressed cooperation opportunities in offshore wind energy projects, the implementation of smart grid technologies, and the deployment of battery energy storage systems (BESS). The World Bank conveyed its strong readiness to provide support and expertise to Azerbaijan in these burgeoning areas of energy development.

• According to IEA’s latest report, global electricity demand is forecast to increase at a rapid average annual rate of 3.6% over the 2026-2030 period.

• Meanwhile, global electricity demand rose by 4.4% in 2024, and by 3% year-on-year in 2025.
•  Key factors are extreme heat, a sudden boom in AI data centres, and the electrification of industries and transports.
• Renewables and nuclear will together account for around 50% of global electricity generation by 2030, much above the current share of 42%.

As the Age of Electricity unfolds, the global dependence on energy is expected to increase. And dependence and demand work in a tight tandem. The current decade is witnessing the emergence of technologies such as AI and growth in space connectivity, which in turn demand increasing amounts of energy. In its latest flagship report – Electricity 2026, published on February 6, 2026, the International Energy Agency (IEA) has forecasted global power demand to have an upward trend. The report also suggested that the  primary factors behind this boost will be a growing use of renewable and nuclear energy. Coal usage for power generation is expected to take a backseat, while natural gas might witness an increase. With the pressing demand for energy surging around the world, the energy sector needs innovations and actions that make it more flexible, accessible, and resilient to threats and existing as well as emerging challenges.

The rising trends of global electricity demand

2024 saw a well-above-average jump in the global energy demand. The growth was around 2.2%, almost twice the average rate of 1.3% between 2013 and 2023. Global electricity demand rose by 4.4% in 2024, and by 3% year-on-year in 2025. Key factors in this huge jump included extreme heat, a sudden boom in AI data centres, and the electrification of industries and transports.

According to IEA’s latest report, global electricity demand is forecast to increase at a rapid average annual rate of 3.6% over the 2026-2030 period. The annual demand growth over the next five years is set to be 50% higher on average compared with the average across the previous decade. Main contributors to this increase in demand are growing usage in industries, air conditioners, electric vehicles, and data centres globally.

Emerging economies are going to take up a major share of the growing demand in electricity throughout 2030, consuming nearly 80% of the additional electricity. While India and Southeast Asian countries will be leading in the growing energy consumption by 2030, China will be the largest contributor in this demand, accounting for about 50% of the energy demand.

Meanwhile, the developed countries are also witnessing a spike in energy demand after 15 years of inactivity. 2025 saw developed nations take up about 20% of global energy demand growth, up from 17% in 2024. These trends highlight the central role of energy in the emerging developments in the advanced technology race based in the global north. Energy demand in both the United States and the European Union is expected to follow a growth of 2% annually through 2030. Other members such as Australia, Canada, Japan and Korea will also see a rise in the need for energy.

Nuclear and renewable sources to power 50% of global electricity generation 

2025 data shows renewable output rose rapidly in 2025, virtually matching the level of coal-generated electricity, with solar PV emerging as a gamechanger in global generation outputs.

Global electricity generation through nuclear sources also saw an uptick in 2025, strengthened by restarted reactors in Japan, and further capacity increase in developing nations. Developed nations also are making a return to nuclear generation through supportive policies.

By 2030, renewable generation is expected to climb at an annual rate of 8% per year. Renewables and nuclear will together account for around 50% of global electricity generation by 2030, much above the current share of 42%.

Coal & natural gas to be major generators, but CO2 emissions to flatten 

Coal-fired generation saw no rise in 2025, although regional trends varied. While India and China saw a decline due to lower energy demands and renewable energy growth, the U.S. and Europe saw a growth due to delay in retirement of coal plants and renewable sources falling short on output.

However, over the 2026-2030 period natural gas will rise as an energy generator fuel, with gas-powered generation to rise by average of 2.6% per year through 2030, complementing renewable and nuclear generation. While renewables are set to contribute the highest share of global electricity generation by 2030, coal will still remain the single largest source for energy generation. Global CO2 emissions from electricity generation are thus expected to remain roughly flat between 2026 and 2030.

Reshuffle of electricity grids and battery storage deployment

While the source of generation marks a shift, the primary challenge in meeting the growing demand lies in supply and storage of the energy. While investment in energy generation capacity has gone up over time, the same is not so similar in the case of electricity grids. With exponential growth in the global energy generation output, more than 2,500 gigawatts (GW) worth of projects await grid connection. Grid expansion, thus, has to be a key part in redefining global energy policies. The estimated electricity demand can be met only through annual increase in grid investment by roughly 50% from today’s USD 400 billion.

Besides grid expansion, advancement in grid technologies such as dynamic line rating, advance power-flow control, reconductoring and voltage uprating are necessary to overcome the supply-chain bottleneck. Furthermore, adapting older power regulations to meet current requirements may free up more stalled projects, leading to fluidity in the energy supply process.

Furthermore, advancement in utility-scale battery storage deployment is a key factor in increasing power supply throughout the world. Rapidly growing energy generation through solar PV and wind is an indicator of the success of this market in regions such as California, Germany, South Australia, Texas and the United Kingdom.

More challenges remain

A plethora of challenges remain in countering the mounting pressure in energy demand. From existing problems such as aging infrastructure and skill force shortages to global tensions, and emerging threats such as intensifying cyber attacks and climate change, global stakeholders must ensure the security and resilience of the energy industry. Policies need to address the accessibility gap between different sections of society and strive to equalize affordability.

At the same time, the scale of investment required to modernize grids, expand transmission networks, and integrate variable renewable energy sources is unprecedented. Rapid electrification of transport, heating, and industrial processes is adding new layers of complexity to system planning. This demands smarter grids, advanced storage solutions, and flexible demand-response mechanisms. Supply chains for critical minerals essential to clean energy technologies remain vulnerable to geopolitical disruptions, potentially slowing deployment. In many developing economies, financing constraints and regulatory uncertainty further complicate the transition. Bridging these gaps will require coordinated public-private partnerships, stable policy frameworks, and accelerated innovation to ensure that rising electricity demand does not outpace the world’s capacity to deliver reliable, sustainable power.

The road ahead: Potential must meet actions

Beyond traditional consumption patterns, electricity demand is being reshaped by data centers, artificial intelligence, electric mobility, and the electrification of heavy industry. As economies digitize and populations grow, grids will need to accommodate sharper load peaks and more decentralized generation. Climate will also play a big factor in shaping the technology of the upcoming decades. With extreme weather patterns becoming more frequent with each passing year, the need for climate-resilient systems is becoming more apparent with passing time. The transition to low-carbon systems must therefore move in tandem with investments in storage, grid interconnections, and flexible backup capacity. Policymakers and utilities will also need to prioritize efficiency measures, smarter urban planning, and consumer awareness to moderate unchecked growth. Without coordinated global action, the widening gap between soaring electricity demand and available clean supply could strain markets, elevate costs, and test the resilience of energy systems worldwide. This makes long-term planning, regulatory clarity, and sustained capital inflows indispensable for maintaining stability while accelerating the global energy transition.

With rising technologies and shifting market interests, the world is pacing towards superior goals of the upcoming decade. It is a fact that energy is a must commodity to achieve those goals. While emerging technologies show this world a new horizon, they also require an ever-flowing supply of energy. To bridge this gap between demand and supply, humans must ensure their actions meet their expectations. Ensuring energy security will be a key factor in taking humans far into the future.

As part of this initiative, the trio’s electricity transmission system operators (Lithuania’s Litgrid, Latvia’s Augstsprieguma tīkls, and Germany’s 50Hertz) committed to evaluate the feasibility of a hybrid interconnection known as the Baltic-German PowerLink. The agreement signals closer regional coordination on energy, complementing existing cooperation frameworks.

Germany, Lithuania and Latvia agreed to continue backing studies conducted by the transmission operators and other institutions, along with cost-benefit analyses, financing structures, and technical assessments. Following preliminary results, the countries will consider seeking Project of Common Interest status within the European Union and applying for EU funding for the implementation of the studies. Furthermore, additional EU countries in the Baltic Sea region could potentially join the Baltic-German PowerLink at a later stage.

The proposed Baltic-German PowerLink would establish an electricity cable connection between Germany and the Baltic countries while also facilitating the expansion of renewable generation capacity. According to the declaration, hybrid electricity links in the Baltic Sea region could deliver multilateral benefits and positive socio-economic effects for participating countries. They are also expected to reduce dependence on fossil fuels and support competitive electricity prices.

Further decisions on the Baltic-German PowerLink are scheduled by the end of the third quarter of 2026. Previously, Litgrid, Augstsprieguma tīkls, and 50Hertz submitted a joint application to include the hybrid offshore interconnection in the 2026 Ten-Year Network Development Plan (TYNDP) of the European Network of Transmission System Operators for Electricity (ENTSO-E). The current project concept outlines a 2 GW, approximately 600 km hybrid offshore connection, with a planned connection point on the Lithuania–Latvia border, subject to technical studies. With a possible completion date of 2037, the Baltic-German PowerLink would enable electricity trading between the Baltic countries and Germany, integrate up to 2 GW of offshore wind capacity in Lithuania and Latvia, expand onshore renewable capacity, and strengthen security of supply across all three nations.