The Lithuanian and Polish Transmission System Operators have signed a joint venture agreement to link the Baltic electricity grid to the continental network (Germany and Poland). The power link will be composed of an interconnector and internal network developments in Germany, Lithuania and Poland. The Baltic States are currently an “energy island” and the construction of the interconnector is considered an urgent matter in terms of security of supply and functioning of the Internal Energy Market. The joint venture will be in charge of all the preparatory works for the cross-border transmission line. The project’s implementation will be facilitated by the use of EU funding from either the Structural Funds or Ignalina Decommissioning Funds.