Latvia's path to energy transition: Expanding renewable energy and investing in storage solutions

In Latvia, renewable energy sources account for a significant portion of the country’s electricity generation, with a target of 57% by 2030 [1].

Hydroelectric power is the main source of renewable electricity in Latvia, followed by solar, wind and biomass cogeneration plants. In 2024, solar power in Latvia grew over 3.1 times to 6.7% of total electricity, becoming the third-largest source, while wind reached a record 38 GWh and hydropower, despite a 16% drop, still provided 54%. [2]

Local authorities are responsible for municipal energy supply and renewable energy projects, with Latvia’s energy transition guided by the National Energy and Climate Plan and the Energy Strategy 2050. Latvia’s Energy Strategy 2050 outlines major changes in renewable energy production and storage, with significant investments planned in wind, solar, biomass, and biogas, as well as in energy storage technologies like batteries and subsurface systems to ensure supply stability [3]. National Energy and Climate Plan 2021-2030 is in line with the strategy outlined before, and envisages significant investment in storage systems to increase energy generation and storage capacity, facilitating the transition to green energy [4]. Latvia’s Recovery and Resilience Plan plays a key role in the energy transition, supporting economic recovery through major investments in renewables like wind, solar, and biomass, as well as initiatives such as a 60 MW Battery Energy Storage System by 2026 and cross-border projects to synchronize with Continental Europe [5].

According to these documents, active implementation of renewable energy power plants is underway, as well as the deployment of battery energy storage systems. In November 2024, Utilitas Wind Ltd inaugurated Latvia’s first storage battery system with a capacity of 10 MW and 20 MWh in Targale, next to the existing wind park. This system, which was connected to the Latvian electricity transmission grid, contributed significantly to energy security and stability, especially ahead of the planned BRELL synchronous disconnection in February 2025. [6]

In the same year AJ Power invested over €6 million to deploy battery energy storage systems at its solar power plants in Valmiera, Aizkraukle, and Ilūkste, enhancing grid stability and renewable integration. These systems, with a combined capacity of 9 MW/18 MWh, are among the first large-scale BESS installations directly connected to solar farms in Latvia. [7]

The most recent update regarding BESS installations is that in Tume and Rēzekne, Latvia’s transmission system operator “Augstsprieguma tīkli” (AST) in June 2025 installed battery energy storage systems with a combined capacity of 80 MW and 160 MWh, which will undergo testing until October 2025. These batteries are crucial for enhancing grid stability, as they will reduce the need for balancing capacity starting next year. [8], [9] What makes this project unique is the development of a custom battery management system created in collaboration between AST and Riga Technical University, which uses advanced algorithms to optimize charging and discharging based on real-time grid conditions, enabling faster, automatic frequency regulation specifically designed for synchronization with the Continental European grid [10].

Along with the construction of the batteries, Augstsprieguma tīkls is developing its own battery management system. This IT solution will allow the batteries to be controlled according to a defined algorithm and the situation on the grid, charging or discharging electricity into the grid. [11]

Finally, Latvenergo – Latvia’s largest state-owned energy group – is heavily expanding its footprint in battery energy storage, aiming to roll out a cumulative 250 MW/500 MWh of BESS capacity by 2030—kicking off with installations at CHPP‑1, to be followed by larger systems at Riga HPP and CHPP‑2—as part of its strategy to become the Baltic market leader, enhance grid flexibility, stabilize prices, and support the region’s synchronisation with the European electricity network [12].

Energy storage systems are an essential element of Latvia’s path towards a sustainable and energy-independent future. The importance of these technologies is being recognized and invested in by a growing number of companies and public institutions. As can be seen, Latvia is currently focusing mainly on BESS, but research on the potential of power to x or power to H2 in Latvia is also being actively developed. Given Latvia’s high share of renewable electricity, the need for electricity storage technologies will increase significantly. However, there are also challenges, such as the need for additional investment in grid infrastructure and regulatory adjustments. However, with the right policies and investments, Latvia can become a regional leader in sustainable energy.

References

[1]      “Latvia’s Booming Renewable Energy Sector – Latvia.” Accessed: Jun. 18, 2025. [Online]. Available: https://www.latvia.eu/latvias-renewable-energy/

[2]      “Elektroenergijas tirgus apskats | AST.” Accessed: Jun. 09, 2025. [Online]. Available: https://www.ast.lv/en/electricity-market-review?month=13&year=2024

[3]      “LV_Enerģētikas_stratēģija_03.2025”.

[4]      “kemplans_nekp_08072024”.

[5]      “Latvia’s recovery and resilience plan – European Commission.” Accessed: Jun. 10, 2025. [Online]. Available: https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility/country-pages/latvias-recovery-and-resilience-plan_en?

[6]      “Tārgale.” Accessed: Jun. 10, 2025. [Online]. Available: https://targale.ventspilsnovads.lv/2024/11/05/targale-uzstadita-elektroenergijas-uzkrajoso-bateriju-sistema/

[7]      “AJ Power Corporate Group Invests €6M in BESS in Latvia.” Accessed: Jun. 10, 2025. [Online]. Available: https://ajpower.lv/en/investing-over-e6-million-in-bess-deployment/?

[8]      “Europe’s most powerful battery energy storage systems to be installed in Latvia for the security of the energy system | AST.” Accessed: Jun. 10, 2025. [Online]. Available: https://ast.lv/en/events/europes-most-powerful-battery-energy-storage-systems-be-installed-latvia-security-energy

[9]      “Tumē un Rēzeknē sāks testēt elektronenerģiju uzkrājošās baterijas / Raksts.” Accessed: Jun. 18, 2025. [Online]. Available: https://www.lsm.lv/raksts/zinas/ekonomika/15.06.2025-tume-un-rezekne-saks-testet-elektronenergiju-uzkrajosas-baterijas.a603329/

[10]    “AST kopā ar RTU zinātniekiem izstrādā unikālu bateriju vadības sistēmu – LATVIJAS BŪVINŽENIERU SAVIENĪBA.” Accessed: Jun. 18, 2025. [Online]. Available: https://buvinzenierusavieniba.lv/ast-kopa-ar-rtu-zinatniekiem-izstrada-unikalu-bateriju-vadibas-sistemu

[11]    “Baterijas | AST.” Accessed: Jun. 10, 2025. [Online]. Available: https://ast.lv/lv/projects/baterijas

[12]    “Latvenergo invests heavily in battery systems, plans to become the Baltic market leader in BESS – Latvenergo.” Accessed: Jun. 10, 2025. [Online]. Available: https://latvenergo.lv/en/jaunumi/preses-relizes/relize/latvenergo-invests-heavily-battery-systems-plans-become-baltic-market-leader-bess?

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