Estonia has the potential to become a European center of excellence for battery technologies
The development of battery power plants has reached a stage where the question is no longer simply whether the technology works. The question is who can implement this technology most effectively, align it with the needs of the electricity market, and ensure the smooth operation of the entire project throughout its lifecycle.
Estonia has the prerequisites for this. We have strong expertise in the energy and digital sectors, practical experience with renewable energy and energy storage projects, and companies that are ready to move beyond the role of subcontractors or equipment installers to the next level.
For Diotech, for example, this marks a new phase of development. We do not view battery power plants merely as a technical supply, because the future belongs to those who understand the technical, business, and financial synergies of these projects. Our mission is to reduce excess electricity consumption and accelerate society’s transition to carbon-neutral electricity solutions.
A battery power plant is more than just a collection of equipment
Battery power plants are playing an increasingly important role in Estonia’s electricity system. They help smooth out volatility in the electricity market, support the greater adoption of renewable energy, and provide essential services to the grid. When a storage solution is properly designed, managed, and integrated, it is not merely a technical device but an active part of the power system.
The value of a battery storage system is realized when the entire solution functions as a unified system: design, grid connection, control, market integration, operation, warranty processes, and the financial model must all be rationally interconnected.
Even in the Estonian market, a distinction has begun to emerge between companies that are familiar only with the equipment and those that understand battery power plants as an asset class. For a large-scale battery power plant, it is not enough for the components to be of high quality. It is essential that the system be reliable, manageable, financeable, and have a long lifecycle.
Such a role requires stronger expertise, clearer work processes, and greater personal commitment from employees. The growth of a company operating in this field cannot be based solely on market growth by offering the same thing to an ever-increasing number of developers. Growth must also stem from the expert knowledge of the company’s people and their ability to solve complex technical and business challenges.
Technology manufactured in Europe ensures a more reliable supply chain
The battery technology market is international, and there are several strong manufacturers in the market. Based on Diotech’s experience, I can say that it is not reasonable to pit one technology against another; rather, for each project, a solution must be chosen that suits the specific client, grid, financial model, and usage logic.
For example, the advantage of Diotech’s long-term partner, LG Energy Solution, lies in the manufacturer’s strong industrial background, longer warranty and product lifespan, and battery technology production based in Poland. When both the batteries and inverters are manufactured in European factories, this is important for large-scale projects—for the client, the financier, and the long-term system operator alike.
Key components manufactured in Europe provide the project with a clearer supply chain, an easier-to-understand risk profile, and a stronger foundation for organizing warranties and technical support. For large-scale energy projects, this directly impacts the project’s financeability, operational reliability, and subsequent plant operation.
The Tsirguliina Battery Power Plant: A New Chapter for Estonian Businesses
The Zirgu BESS 200 MW / 800 MWh battery power plant being built in Tsirguliina is a prime example of how the technical expertise of Estonian entrepreneurs and local capital can come together. The project is being developed by Diotech’s shareholders in collaboration with the Estonian company Transcom, combining local capital, development capabilities, and technical expertise to bring the project to fruition.
In the first phase of the project, 100 MW / 200 MWh of storage capacity will be built, with key components manufactured in Europe: the batteries will be supplied by LG Energy Solution’s plant in Poland, and the inverters will come from the Spanish manufacturer Power Electronics.
Diotech is not merely a technical service provider in this project; it is also involved at the ownership level and acts as the general contractor. This entails responsibility for technology selection, system integration, the delivery schedule, technical implementation, and the project’s commercial success. As an Estonian company, Diotech has taken on the role of a comprehensive development partner.
The significance of the Zirgu BESS extends beyond a single site. It confirms that Estonian companies have the capability to participate in projects that require combining technological expertise, electricity market needs, grid requirements, financing, and long-term responsibility. The success of such projects requires a strong team, clear collaboration, and people who can actually make complex technological solutions work.
Estonia has the opportunity to play a larger role than its population size would suggest
Our most important asset is not a single specific technology, but the people who know how to actually make that technology work. The next phase of growth requires specialists with a strong technical background and practical experience in electrical engineering who are eager to work on new and complex energy solutions . We need people who understand the system as a whole, are able to take responsibility, and want to contribute to projects that have an impact on the energy system of Estonia and the entire region.
This also requires greater clarity from everyone regarding their role, stronger collaboration, and greater personal responsibility. As a team, we must be prepared to give honest feedback, resolve complex issues, and take responsibility even when a problem does not fall precisely within the boundaries of a single job description.
Estonia has the opportunity to become a European center of excellence for battery power plants—not just as a slogan, but through practical experience. Our advantage lies in our ability to implement complex projects quickly, correctly, and transparently.
In the coming years, the European power system will require greater controllability, flexibility, and storage capacity. This creates an opportunity for Estonian companies to grow beyond the domestic market—but only if we have sufficient technical depth, reliable partners, and the ability to take responsibility for the entire project lifecycle.
Diotech’s ambition is to actively participate in this development. Our role is not merely to build battery power plants. Our role is to help create solutions that make the power system more reliable, the use of renewable energy more efficient, and the expertise of Estonian companies more visible beyond Estonia’s borders.
Raivo Videvik, Chairman of the Board and CEO of Diotech OÜ
