Lithuania: A New Pivot for EU Energy Security, Opportunities and Landscape of the 4GWh Blue Sea Market

Created on 10.22
As multiple countries in the EU are still entangled in energy transition and grid security, Lithuania is becoming the most certain "new blue ocean" in the European energy storage market with a clear path of "disconnecting from the Russian and Belarusian grid, aligning with EU standards, and increasing investment in energy storage infrastructure." This country, located on the eastern shore of the Baltic Sea, not only holds a demand for an additional 4GWh of energy storage but also benefits from the dual support of EU funds and local subsidies, along with practical experience from various benchmark projects. Today, we will analyze the "irreplaceability" and future potential of Lithuania's energy storage market from an industry perspective.

I. Energy security compels: The "essential demand background" of Lithuania's energy storage

Unlike the "optional" energy storage demand in some markets that relies on policy subsidies, Lithuania's energy storage layout fundamentally carries the essential attribute of "grid independence."
In February 2025, Lithuania, together with Latvia and Estonia, completed the synchronous interconnection with the EU continental power grid, completely bidding farewell to the Russian-Belarusian BRELL ring network that had been in operation for nearly 50 years. Behind this milestone event is Lithuania's urgent need for "energy autonomy"—after breaking away from the original power grid, how to ensure frequency stability, cope with fluctuations in renewable energy, and avoid power supply gaps? Energy storage has become the only solution.
The actions of Lithuania's main power grid company Litgrid are highly representative: as early as 2023, it collaborated with Fluence to launch a 200MW/200MWh "Energy Storage as Transmission" project. This project not only undertakes daily peak shaving tasks but also serves as a "backup power source for islanded operation," which can be quickly activated in the event of sudden grid failures to ensure power supply to core areas. This "safety first" positioning has given Lithuania's energy storage projects a rigid "non-cancelable" nature from the planning stage.
At the same time, the explosive growth of renewable energy further amplifies the demand for energy storage. Data shows that Lithuania's solar power installed capacity has exceeded 2GW in 2024, achieving the 2030 target six years ahead of schedule; onshore wind power has also achieved "grid connection without subsidies," becoming the main force for electricity increment. However, according to the "National Energy Independence Strategy," Lithuania's renewable energy installed capacity needs to reach 10.3GW by 2030 (photovoltaic 4.1GW + onshore wind 4.5GW + offshore wind 1.4GW) — with such a large-scale volatile power source integration, based on the internationally accepted 15%-20% energy storage ratio, more than 4GWh of additional energy storage capacity will be required before 2030, and the market increment is clearly visible.
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II. Policy Dividends Realized: A Tangible "Support System"

For professionals focusing on overseas markets, what is most attractive about Lithuania is the "real financial support" of the "EU + local" dual policy, which precisely meets the needs of energy storage projects, from funding subsidies to cost optimization.
EU Fund: Focus on Strategic Projects
As a member state of the European Union, Lithuania can directly apply for special funds at the EU level, with priority given to energy storage projects related to "grid security and renewable energy integration":
  • Next Generation EU Recovery Fund: Specifically supports
“Post-pandemic era energy infrastructure upgrade,” Lithuania's Energy Cells company received 87.6 million euros in support from the fund for its 200MW energy storage project, covering 80% of the project investment;
  • TCTF Connects European Facilities Fund: €180 million approved for Lithuania's energy storage project in 2024, focusing on support
"Cross-regional energy storage coordinated with the EU power grid," such as the energy storage interconnection project in the Baltic States planned by Litgrid.
Although the application threshold for this type of fund is relatively high, it excels in large amounts and long cycles, making it suitable for large-scale, strategic energy storage projects.
Local subsidies: Covering the entire project cycle
Lithuania's local policies are more grounded, providing targeted support from the Pre-RTB stage to the operational stage:
  • APVA Special Subsidy: Currently the most essential local subsidy, up to
150,000 euros/MWh, and clearly stating "TSO (Transmission System Operator) project priority" — companies that layout such projects can directly enjoy subsidies, reducing investment costs by about 30%;
  • ILTE Financing Guarantee: Provide “
Financing at low interest rates of "3+EURIBOR" can be applied for both DSO (Distribution System Operator) and TSO projects, effectively alleviating the funding pressure in the early stages of the project;
  • Cost Optimization Policy: Clearly Support
"Battery procurement cost deduction" (the current battery price has dropped to 100,000 euros / MWh), "land leasing as an alternative to purchase," taking the Bitenai substation energy storage project as an example, leasing land can reduce more than 60% of the initial land investment.
SME Friendly: Low Barrier Entry Channel
Even companies with smaller capital scales can find opportunities in Lithuania — the "25% partial ownership model" allows investors to participate in energy storage projects with a cost of only 0.015M euros/MWh, while enjoying the same subsidy eligibility as full investors, significantly lowering the entry threshold.
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III. Benchmark Project Implementation: "Practical Samples" from Technology to Model

In addition to policy dividends, the various energy storage projects that Lithuania has implemented have become "practical samples" for industry reference, covering different technological routes, application scenarios, and cooperation models.
Grid-level energy storage: Rolls-Royce + Ignitis's "Large Storage Benchmark"
In addition to policy dividends, the various energy storage projects that have been implemented in Lithuania have become "practical samples" for the industry, covering different technological routes, application scenarios, and cooperation models.
Grid-level energy storage: Rolls-Royce + Ignitis's "Large Storage Benchmark"
The Ignitis 291MW/582MWh energy storage project, launched in 2025, is a representative work of grid-level energy storage in Lithuania:
  • Technical Route: Using Rolls-Royce mtu EnergyPack energy storage system, focusing on
“2 hours of long-term energy storage + second-level frequency modulation” can simultaneously meet the needs of grid frequency regulation and black start;
  • Layout Logic: The project is implemented across 3 sites (Kaiermei Wind Farm, Mazeikiai Wind Farm, Kruonis Pumped Storage Power Plant), directly interacting with renewable energy bases and traditional energy storage facilities to achieve
"Source Network Storage" Collaboration;
  • Cooperation Model:
"International equipment manufacturer (Rolls-Royce) + local operator (Ignitis)", the former provides standardized technical solutions, while the latter connects grid resources and policies. The project is expected to become the largest single energy storage project in the Baltic Sea region after it is put into operation in 2027.
Regional-level energy storage: Trina Storage's "standardized replication"
The 180MWh energy storage project in collaboration with the Lithuanian local EPC company Stiemo by Trina Storage provides a "quick implementation" model for regional-level energy storage:
  • Project Features: Divided into 3 sites (Anyksciai, Skuodas, Jonava), each site 30MW/60MWh, using Trina Solar Elementa2 integrated solution, requiring only 4 months from equipment delivery to grid connection;
  • Core Advantages: Standardized design reduces costs, localized EPC solves approval and construction issues. After the project is put into operation in 2026, it will serve the surrounding distributed photovoltaics and residential loads, becoming a typical case of the DSO project.
Substation Cluster: Bitenai's "Scaled Reserve"
According to the project document disclosure, the Bitenai substation in Lithuania is advancing 8 Pre-RTB phase energy storage projects, with a total scale of 200MW-400MWh, and individual project capacities of 20MW-40MWh or 30MW-60MWh, scheduled for centralized launch in Q4 2026. These "substation cluster energy storage" projects are directly laid out around the core nodes of the power grid and, after being put into operation, will become the "regulation hub" of the regional power grid, as well as an incremental area that enterprises can focus on in the future.
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IV. Regional Cooperation is Promising: The "Energy Storage Network" from Lithuania to the Baltic Sea

The energy storage value of Lithuania goes beyond the domestic market — as the "energy hub" of the Baltic States, its future will form a "storage synergy network" with Latvia and Estonia, amplifying market space.
Currently, Latvia has planned for renewable energy to account for 57% by 2030, requiring supporting 1.5GWh of energy storage; Estonia holds 11GW of wind power reserves and needs to implement 800MWh of energy storage before 2028. The three countries have achieved interconnection through the HarmonyLink power grid, which means:
  • The energy storage project established by the enterprise in Lithuania can participate in the electricity balancing market of the three Baltic States in the future, obtaining cross-regional peak shaving benefits;
  • Standardized technical solutions (such as Trina Elementa2, Rolls-Royce mtu systems) can be quickly replicated in Latvia and Estonia, reducing regional expansion costs.
This "one country layout, three countries benefit" synergy has made Lithuania the "best entry point" for entering the Baltic Sea energy storage market.
Lithuania is not just a "new market," but also a "new pivot."
For the global energy storage industry, Lithuania's significance goes far beyond a "4GWh new market"—it is a "testbed" for the implementation of the EU's energy security strategy, a "practical example" of the synergy between renewable energy and energy storage, and a "hub node" connecting the Baltic Sea regional market. Currently, Lithuania's energy storage market is in a golden period of "policy dividend release + concentrated project implementation," where opportunities can be found for both large-scale grid-level projects and region-focused distributed storage. As the EU's energy transition deepens, the energy storage story of this Baltic country is just beginning.
Our company is closely monitoring the rapid development and ongoing opportunities in the Lithuanian energy storage market. Several projects have already entered the preliminary RTB stage, with clear implementation paths and advancement milestones. As a key node in the EU's energy security strategy, Lithuania not only has clear policy support and a demand for large-scale projects but also demonstrates the potential to connect the entire Baltic region.
If you are interested in the Lithuanian energy storage market and possess relevant capabilities in project development, investment, technology, or operations, we welcome you to contact us. We are willing to work together with partners who are committed to seizing the opportunities in this emerging blue ocean market, exploring more project possibilities, and achieving deep layout and win-win cooperation in the regional market.
Looking forward to communicating with you to expand a greater energy storage future together.
Contact us via email 📫 or phone 📞 to obtain the latest specific investment plan for the Lithuania battery energy storage system project (including project portfolio, development process, cooperation model) from "Lithuania".

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