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The Latvian transmission system operator JSC "Augstsprieguma tīkls" (AST) and the German company Rolls-Royce Solutions GmbH (Rolls-Royce) have started a collaboration on the construction of critically important battery energy storage systems (BESS) for the security of Latvia's energy system. Rolls-Royce will install a battery system at AST's substations in Rēzekne and Tume with a total capacity of 80 MW and a storage capacity of 160 MWh, which is currently one of the most powerful and largest battery systems in the European Union.
"Battery systems are a crucial infrastructure element for the security and stability of Latvia's energy supply. The batteries will function as modern accumulators for storing large volumes of energy, which will be important for maintaining energy balance after Latvia's electrical supply network operates synchronously with the European network," states the Minister of Climate and Energy, Kaspars Melnis.
During a recent visit to the construction site at the Tume substation, where connection work for integrating the batteries into the network has begun, AST's Chairman of the Board, Rolands Irklis, highlighted, "Under the contract with Rolls-Royce, we will deploy high-capacity batteries in Tume and Rēzekne, which are among the most critical projects for synchronizing the Baltic common power grids with the European system. It represents a significant step towards the security and energy independence of Latvia and the Baltic region from our eastern neighbors, enabling us to maintain our systems more independently and ensure stable and secure energy supply for our consumers. Importantly, the battery project has secured European funding exceeding 85%, not significantly impacting the electricity transmission tariff."
The battery system's delivery and installation in Rēzekne are financed by the European Union from the Recovery and Resilience Facility (RePowerEU) at 100%. Meanwhile, 75% of the BESS in Tume and related substation expansion work in Tume and Rēzekne will be co-financed by the Connecting Europe Facility (CEF).
Minister Melnis credits the Ministry of Climate and Energy's team for securing EU funding for the battery installation, following intense negotiations with the European Commission. Rolls-Royce Power Systems, a renowned energy storage system manufacturer, will provide all the equipment.
Dr. Jörg Stratmann, CEO of Rolls-Royce Power Systems, expressed pride in contributing to this vital security project in Latvia. The project in Latvia will be their largest battery system to date, aligning with their strategic business domain of providing sustainable and reliable energy security solutions globally.
The modern battery system will offer rapid, automatically activated frequency regulation reserves essential for synchronization mode, where Baltic states' power transmission systems operate in sync with continental Europe's grids. This capability is not only crucial in synchronization mode but also in a future with a growing share of renewable resources in the energy system. A 2021 study by AST and Baltic transmission system operators "Litgrid" AB and "Elering" AS identified batteries as the best solution for the necessary Baltic balancing capacity reserves from a security and economic standpoint.
Alongside Rolls-Royce, LEC Construction International GmbH and Latvian company SIA "Enersense" will participate in the battery construction. AST will develop its battery management system, allowing network-adaptive battery control based on specific algorithms.
The battery system will be located at two sites: a 20MW/40MWh battery at the Tume substation and a 60MW/120MWh battery at the Rēzekne substation. Rolls-Royce's bid to deliver and install the BESS system at a total contract amount of 77.07 million EUR was the most economically advantageous in an open procurement procedure.
Rolls-Royce, with over 115 years of history, manufactures high-speed engines and various propulsion systems at its Power Systems division in southern Germany, catering to electricity generation, heavy land and rail vehicles, and ships. They also produce diverse energy-related equipment, including energy storage systems, and develop various climate-neutral solutions.
In the last decade, AST has made fundamental changes to the transmission network infrastructure and management technologies, preparing Latvia's transmission system for synchronous operation with continental Europe by 2025. Disconnecting Latvia's electrical supply system from the Russia-controlled network is a prerequisite for achieving Latvia's energy independence and security. Following Russia's invasion of Ukraine, risks in the Baltic states' energy systems increased, leading to a political agreement in 2023 for an accelerated synchronization of the Baltic electricity grids with continental Europe by early 2025, nearly a year ahead of the initial plan.
This EU-supported and ambitious energy independence project in the Baltics is in its final phase. According to the initial plan, all infrastructure projects in Latvia will be completed by the end of 2025, with most implemented by February 2025, ensuring technical readiness for safe and stable system operation in synchronization mode.
