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A growing demand in the energy market for battery energy storage system (BESS) technologies is developing currently, and the trend is expected to remain stable in the future. Similarly to solar energy and electromobility, this is a strategically new business area for Latvenergo, which is aiming to become the leading player in the Baltic BESS market.

Therefore, in the generation portfolio of Latvenergo, alongside hydro power plants (installed capacity ~1550 MW), combined heat and power plants (~1050 MW) and solar and wind capacities under development, we planned to build a BESS which will ensure synergy with the generation and sales portfolio of Latvenergo. This will also ensure the more efficient functioning of the electricity market and more stable price dynamics in the long term, as well as more affordable electricity for customers; it will also enhance the competitiveness of the national economy and strengthen the security of supply.

The plans of the Group to invest in battery energy storage system technology by installing 250 MW of power with a capacity of 500 MWh by 2030 is an affirmation of the strategic commitment of the Group to be the leading renewable energy utility in the Baltic states. The first BESS projects are being implemented in Latvia and at Latvenergo production sites – starting with the smaller-scale BESS at Latvenergo AS CHPP-1 and continuing with larger storage solutions, including at Riga HPP and Latvenergo AS CHPP-2. The procurement and selection of suppliers for the latter projects is currently in progress. Future projects will be carefully evaluated to strategically deploy storage capacities across the Baltic states in order to maximise the benefits for the security of supply and customers.

Latvenergo has more than 85 years of experience in the energy sector and continues to make a significant contribution to energy stability in the region, especially considering the synchronisation of the Baltic electricity grids with Europe. Battery systems play a crucial role in balancing the production volumes of Latvenergo and improving the flexibility of consumption.

Chief Financial Officer of Latvenergo Guntars Baļčūns: “This investment in battery systems is an important step in the development of our energy sector and long-term sustainability. We see huge synergetic benefits arising from our investment in BESS, both for the current generation capacity of Latvenergo and the development of existing renewable energy projects. The innovations and infrastructure of Latvenergo will not only strengthen the security of supply but also the development of the Baltic region.”

About BESS:
BESS, or Battery Energy Storage System, is a technology that allows electricity to be stored with the objective of feeding it back into the grid at times of peak demand. The stored energy helps to balance electricity supply and demand, while ensuring the stability of frequency. The construction of BESS is also important in view of the expected increase in electricity consumption and volatility of electricity generation, as well as the synchronisation of the Baltic states with Europe.