Diotech is nearing completion the largest battery storage facility in the Baltics with LG’s cutting-edge technology

Eesti Energia is building the company’s first large-scale storage facility in the Auvere industrial complex to balance the fluctuations in electricity prices resulting from the growth of renewable energy production and to support the stability of the electricity system. The investment in the battery storage facility will help Eesti Energia increase the use of electricity produced from renewable energy sources, while ensuring more stable prices for end users.

The main contractor and energy solutions system integrator, the Estonian company Diotech, will install the storage system using LG Energy Solution’s latest LFP battery technology. This is the first project in our region where an energy storage facility of this size will start operating.

The capacity of the storage facility to be built is 26.5 megawatts and 53.1 megawatt-hours, and the total investment is 19.6 million euros. The large-scale storage facility can participate in both the electricity exchange and other energy markets to ensure security of electricity supply. Because batteries are able to respond very quickly to changes in the power system, they are ideal assets for providing system services.

The system is designed to last 15 years, ensuring reliability, high cycle efficiency and minimal performance degradation even in long-term use. When it starts operating in early 2025, it will provide the necessary energy storage options to stabilize the grid and support renewable energy during peak loads. This is a pilot project to ensure the suitability of the solution in Estonia and in the company’s other home markets.

“We are committed to creating a stable and sustainable managed energy storage network in the Baltic region. This project is a major step forward in how we store and manage renewable energy and we are pleased to see its positive impact across the Baltics,” said Raivo Videvik, CEO of Diotech.

Estonia and the other Baltic states plan to leave the Russian electricity grid and connect to the Continental European electricity system in February 2025. This step means that the Baltic states will no longer be able to use the support from the Russian grid, which has helped stabilize the electricity system so far. Therefore, the Baltic states will have to provide more reserve capacity themselves. Decoupling will increase the importance of local and regional reserves. Estonia and the Baltics need to invest in new reserve plants and storage solutions to cover unexpected changes in production and consumption.

According to Kristjan Kuh, Member of the Board of Eesti Energia, the development of renewable energy and storage should go hand in hand. “The more unmanageable renewable energy production we get on the market, the more we need storage. Since the wind does not blow and the sun does not shine all the time, it must be stored. One solution for storing renewable energy is large-scale energy storage, the existence of which helps to avoid extremely high electricity prices. Sufficient storage capacity helps to ensure affordable electricity prices, the reliability of the energy system and the more efficient use of renewable energy.”

Mart Moora, co-founder and board member of Diotech and head of grid-scale projects, added: “Our goal is to promote the transition to cleaner energy. This project shows what is possible when we focus on reliable and scalable battery solutions.”

The battery technology supplied includes LG’s latest LFP battery cells, which are known for their safety, long life and efficiency. Such technology is ideal for projects where reliability and long-term performance are crucial.

Kyuwon Heo, Head of Commercial Grids, Grid ESS Europe at LG Energy Solution, said: “This partnership is an important milestone for us. We are proud to support Diotech with our cutting-edge technology and help the Baltic region move towards a more sustainable energy future.”

“Thanks to the successful implementation of the major project, we are already offering tailor-made energy solutions to customers in Poland and business customers in Estonia, and soon also in Latvia and Lithuania. Our plans for the next year include hundreds of megawatt-hours (MWh) of managed storage capacity, and we are ready to help both manufacturing and industrial customers as well as commercial real estate developers with solutions that will actually reduce energy costs and create new energy trading opportunities,” said Raivo Videvik.

Diotech, as a system integrator for energy solutions, sets its mission to reduce customers’ electricity costs and accelerate the transition to managed capacities. The company offers sustainable, integrated solutions for renewable energy production, storage, electric vehicle charging, energy trading and optimization of lighting and technical systems in buildings. All of this is supported by Diotech’s energy management service, which guarantees the smooth operation of the systems in the long term.

Founded in 2014, Diotech OÜ has grown into a group of companies with an annual turnover of approximately 25 million euros. In addition to the parent company Diotech OÜ, the group also includes subsidiaries operating in various business areas: Diotech Electric OÜ, Diotech Nord OÜ, Solar Wheel OÜ (Sunecor) and Solar Rent OÜ, as well as subsidiaries in Latvia and Lithuania.