Latvia Energy Storage: The EU is sending money, Chinese companies are rushing in, this Baltic dark horse hides an 18%-25% IRR opportunity.When the Lithuanian energy storage market is being fervently discussed due to subsidy policies, Latvia, another Baltic state, is quietly rising. This country, which just completed its power grid independence revolution in 2025, has become a "value lowland" in the eyes of energy storage investors, thanks to its unique advantages of a 40% frequency fluctuation gap, 70% cross-border project share, and EU fund backing. More importantly, Chinese companies such as Kehua Data and Hema have already taken the lead in establishing benchmark projects, and a competition to seize the dividends of energy transition in Eastern Europe has already begun.
I. Power Grid Independence + Surge in Green Energy: Energy Storage Becomes an Essential Need Among Essential Needs
Latvia's energy storage boom began with a battle for energy sovereignty—the decoupling from the power grid. In February 2025, with the complete disconnection from the Russian BRELL grid, Latvia, through LitP