The topic of climate change and the actions to combat it on a global scale have led to several fundamental developments in the global energy systems and particularly – in the power systems. These developments include decommissioning of conventional fossil fueled power plants and a massive introduction of renewable non-synchronous power plants, leading to massive reductions of system inertia in the power systems. The political decisions for desynchronizing the Baltic power system from UPS/IPS power grid and synchronizing it to the ENTSO-E grid are firm. This development will lead to Baltic power system becoming a weakly interconnected system, working in island mode occasionally and with rapidly diminishing system inertia levels due to the plans for massive introduction of renewable power plants. A novel, predictive, rapid load shedding (LS) method/scheme is proposed to tackle the challenges stated above. The proposed novel LS scheme is based on using synchronous condensers as frequency/ROCOF sensors and triggering the LS much quicker than a conventional LS would do. In such wise, power system frequency can be stabilized in the case of a major loss-of-generation contingency and be held within the safe frequency threshold avoiding a potential system blackout. The proposed novel LS scheme has been tested on the case of Baltic power system in island mode and showed significant positive effect of the system frequency stability. The results show that, with the scheme implemented, the frequency fall during contingencies is significantly reduced when comparing to the conventional LS and the positive effect on the system frequency strongly correlates with the diminishing system inertia levels. The effect of the novel LS scheme on the socio-economic welfare (SEW) of the power system has been tested on the case of Baltic power system for both historic (year 2020) and future (years, 2030, 2040, 2050) cases. The results show that implementation of the scheme could bring multi-million EUR benefits to Baltic power grid users annually and these benefits of the scheme are vastly superior over both expected load shedding costs and over the capital expenses for implementing the proposed LS scheme. Showing both system-related and fiscal effects the proposed LS scheme positive, the implementation of proposed LS scheme may become an important part of the Baltic power system transformation into a CO2-neutral, stable and independent power grid.