The Latvian transmission system operator JSC "Augstsprieguma tikls" (AST) received three tenders in the open tender procedure for the supply and installation of a Battery Energy Storage System (BESS) at the substations in Tume and Rezekne, and the most economically advantageous tender was awarded to the German company Rolls-Royce Solutions GmbH.

“Battery systems are an important infrastructure project for the security and stability of Latvia’s energy supply, allowing the necessary balancing reserves in the network to be ensured, the amount of which will increase significantly after synchronisation. I am pleased that the professional work of the AST Procurement Committee ensured competition among suppliers, which allowed the selection of the most economically advantageous solution, and the necessary equipment to be provided by one of the world’s most renowned manufacturers of energy storage systems. It is significant that we have been able to attract more than 85% of European Union funding for this project,” says Rolands Irklis, Chairman of the Management Board of AST.

AST will purchase a battery energy storage system with a total capacity of 80 MW and a storage capacity of 160 MWh. The battery system will be deployed in two locations – a 20 MW/40 MWh battery at the AST substation in Tume and a 60 MW/120 MWh battery at the AST substation in Rezekne. The state-of-the-art battery system is expected to provide the high-speed and automatically-activated frequency regulation reserves needed for synchronisation mode, in which the Baltic electricity transmission systems work in synchronisation with the continental European grids. In addition, the battery system will be able to provide these reserves at a lower cost than the majority of conventional power plants, which are currently the only ones able to offer this service. 

After a careful evaluation of the three tenders received, the AST Procurement Committee awarded the most economically advantageous tender to Rolls-Royce Solutions GmbH, a German company with a total contract value of EUR 77.07 million, which will collaborate with LEC Construction International GmbH, a German company, and Enersense SIA, a Latvian company, to carry out the construction work.  

The delivery and installation of the battery systems in Rezekne will be 100% financed by the European Union under the Recovery and Resilience Facility (RePowerEU), while the BESS in Tume and the substation expansion works in Tume and Rēzekne will be 75% co-financed by the Connecting Europe Facility (CEF). 

The company has a history of more than 115 years, and the Rolls-Royce business unit Power Systems in southern Germany, manufactures high-speed engines and various propulsion systems for power generation, heavy land and rail vehicles and ships. It also produces a wide range of energy equipment, including energy storage systems, as well as various climate-neutral solutions.   

Over the last decade, AST has made fundamental changes to the transmission network infrastructure and control technologies to prepare the Latvian transmission system for synchronous operation with continental Europe by 2025. The disconnection of the Latvian energy supply system from the Russian-controlled grid is a key condition for achieving Latvia’s energy independence and security of energy supply. Following Russia’s invasion of Ukraine, risks to the Baltic energy systems also increased, which is why a political agreement was reached in 2023 to accelerate the synchronisation of the Baltic power grids with continental Europe by early 2025, almost a year earlier than originally planned.  

This European Union (EU)-backed project, the 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 bulk of the work completed by February 2025, ensuring technical readiness for the safe and stable operation of the system in synchronisation mode.  

More information on the synchronisation project is available in the Synchronisation with Europe section of the AST website.