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The winner of the procurement for the supply and installation of electricity battery systems necessary for the security of Latvia's electricity supply has been determined.

The winner of the procurement for the supply and installation of electricity battery systems necessary for the security of Latvia's electricity supply has been determined.

Ministry of Economics

The information was translated using the ChatGPT service. 

The transmission system operator of Latvia, AS "Augstsprieguma tīkls" (AST), in its open procurement procedure for the supply and installation of a Battery Energy Storage System (BESS) at the Tume and Rezekne substations, received three bids and deemed the offer from the German company Rolls-Royce Solutions GmbH as the most economically advantageous.

"The battery systems are a significant infrastructure project for the security and stability of Latvia's energy supply, allowing for the provision of necessary network balancing reserves, which will significantly increase after synchronization. I am pleased that as a result of the professional work of the AST procurement commission, competition among suppliers was ensured, allowing us to choose the most economically advantageous solution, and the necessary equipment will be provided by one of the world's most recognized manufacturers of energy storage systems. Importantly, we have been able to attract European Union funding for this project in excess of 85%," says AST Chairman of the Board Rolands Irklis.

AST will acquire a battery system with a total capacity of 80 MW and a capacity of 160 MWh. The battery system will be located in two locations – a 20MW/40MWh battery at the AST substation in Tume, and a 60MW/120MWh battery at the AST substation in Rezekne. It is expected that the modern battery system will provide the fast-acting and automatically activated frequency regulation reserves necessary for the synchronization mode, in which the Baltic States' electricity transmission systems operate synchronously with the continental European electricity grids, and will be able to provide these reserves more economically than most conventional stations.

After careful evaluation of the three received offers, the AST procurement commission recognized the offer from the German company Rolls-Royce Solutions GmbH with a total contract sum of 77.07 million EUR as the most economically advantageous, which will cooperate in the construction work with the German company LEC Construction International GmbH and the Latvian company SIA "Enersense".

The delivery and installation of the battery system in Rezekne has been funded by the European Union from the Recovery and Resilience Facility structural funds (RePowerEU) to the extent of 100%. At the same time, BESS in Tume and the substation expansion works related to BESS connection in Tume and Rezekne will be co-financed to the extent of 75% from the Connecting Europe Facility (CEF).

The supplier company has a history of more than 115 years, and at its Rolls-Royce Power Systems unit in southern Germany, it manufactures high-speed engines and various drive systems designed for electricity generation, heavy land and rail vehicles, as well as ships. It also produces a variety of equipment for energy applications, including energy storage systems, and develops various climate-neutral solutions.

Over the last decade, AST has made fundamental changes to the transmission network infrastructure and management technologies to prepare the Latvian transmission system for synchronous operation with continental Europe by 2025. Disconnecting the Latvian electricity supply system from the Russian-controlled network is a fundamental condition for achieving Latvia's energy independence and security of energy supply. Following Russia's invasion of Ukraine, risks also increased for the Baltic States' energy systems, leading to a political agreement in 2023 for an accelerated synchronization of the Baltic electricity networks with continental Europe – at the beginning of 2025, nearly a year earlier than initially planned.

This European Union (EU)-supported and most ambitious energy independence project in the Baltics is in its final phase. According to the original plan, all infrastructure projects in Latvia will be completed by the end of 2025, with the majority implemented by February 2025, thereby ensuring technical readiness for safe and stable system operation in synchronization mode.

More information about the synchronization project is available on the AST website in the Synchronization with Europe section.

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