NGEN Group enters Latvia with EUR 50 million investment

NGEN Group took over 100% of Latvian firm Liepāja ESS to implement a standalone grid-connected battery energy storage project for 100 MW in operating power and a capacity of 200 MWh. The Slovenia-based investor opted for Tesla’s solutions, marking their joint entry into the region.

At a media event that the Investment and Development Agency of Latvia (LIAA) organized today, NGEN Group announced its entry into the Latvian market with a EUR 50 million investment. The Slovenia‑based energy company has become the 100% owner of local enterprise Liepāja ESS, to implement a standalone grid-connected battery energy storage project.

The envisaged capability is 100 MW and the capacity is 200 MWh. The site is near the Grobiņa substation in Dienvidkurzeme – south Kurzeme. As for the schedule, the facility, worth an estimated EUR 30 million, should come online in the second half of the year.

NGEN’s battery storage facility is set to become the first one integrated with the transmission grid

“The development of such projects is a significant step in the development of Latvia’s energy infrastructure. It will be the first energy storage station in the Baltics to use Tesla technologies. This is proof to international investors that Latvia is a safe country for investments and can implement significant energy projects based on open and predictable procedures,” said Minister of Economics Viktors Valainis.

It would be the first standalone battery energy storage system (BESS) directly connected to the network of the country’s transmission system operator Augstsprieguma tīkls (AST). Importantly, the project is being built using the supply chains of countries within the North Atlantic Treaty Organization (NATO) and their allies, including the main equipment, from the United States, the statement adds.

“Latvia is an attractive market for the development of such solutions, thanks to orderly regulation and strong ambitions in the energy sector. The acquisition of Liepāja ESS is a logical next step in expanding our operations in Europe, demonstrating that storage strengthens system security and market efficiency,” said Chief Executive Officer of NGEN Group Roman Bernard.

The company specializes in energy storage and flexibility solutions.

Tesla, NGEN Group entering Baltics market together

The project will strengthen balancing capabilities, reliability and flexibility of the Latvian energy system, LIAA said. It is especially important after disconnection from the BRELL (Belarus-Russia-Estonia-Latvia-Lithuania) network a year ago, according to the agency.

“Tesla is excited to further strengthen our long-term partnership with NGEN Group by entering the Baltics market together. This strong collaboration will help deliver Megapack technology to support the Latvian electrical system in its advanced progress towards a renewable grid and increasing energy independence,” Tesla’s Vice President of Energy and Charging Mike Snyder stated.

Tesla’s VP Mike Snyder said Megapack technology would help the country’s progress toward energy independence

According to co-founders of Liepāja ESS Jānis Sproģis and Kārlis Maulics, the organizations and institutions involved in the project have enabled it to proceed in a transparent and predictable manner.

“Our goal is to implement the project on time and in accordance with the highest safety and quality standards. This is practical proof that Latvian regulation and institutional cooperation can ensure the implementation of such projects, attracting strategic investments both on a Latvian and Baltic scale,” they stressed.

Strength for Latvia’s energy security

The planned electricity storage station will expand the possibilities for balancing electricity capacity in Latvia and the Baltics, while simultaneously strengthening the country’s energy security and technological resilience, LIAA stressed.

The agency’s Director Ieva Jagere said energy infrastructure investment projects make up a large part of its EUR 17 billion investment portfolio.

“Such technologically well-prepared and high-quality projects build Latvia’s international reputation in negotiations with other investors. Work on this project proceeded at a very fast pace, proving that we are open and interested in new investments coming to Latvia,” she underscored.