Estonia’s Sunly and Rolls-Royce strike Baltics’ largest private battery storage deal

Estonia’s Sunly and Rolls-Royce strike Baltics’ largest private battery storage deal
/ Sunly
By bne IntelliNews June 5, 2026

Estonian renewable energy developer Sunly and Rolls-Royce Power Systems signed an agreement to build four large-scale battery energy storage systems in Latvia, creating what the companies describe as the largest battery storage project undertaken by a privately owned company in the Baltic states, Sunly announced on June 4.

The investment comes at a significant moment for the Baltic energy sector. Following the region's synchronisation with the European electricity network and its disconnection from the Russian grid, demand for balancing and frequency-control services has increased sharply.

The facilities will have a combined storage capacity of 490 MWh and form part of a wider regional partnership that could eventually reach 790 MWh, including a planned project in Estonia.

The agreement was announced during the opening of Sunly's new solar park in Valmiera, one of Latvia's first hybrid renewable energy sites combining solar generation and battery storage. The first battery installation in Valmiera is expected to enter operation in early 2027, with three additional projects scheduled to follow later that year.

Under the agreement, Rolls-Royce will act as the main contractor, overseeing design, equipment supply, construction and commissioning. The company will deploy its mtu EnergyPack battery systems and energy management software, designed to help balance electricity supply and demand while supporting grid stability.

Rolls-Royce said the battery systems would play an important role in supporting renewable energy integration and strengthening regional energy security.

The companies have also signed a memorandum of understanding covering a further 300 MWh battery storage project in Risti, Estonia.

"Our aim is to build an energy system that works for people, not just when the sun shines. By combining solar generation and battery storage, we can produce energy when conditions are right and deliver it when it is needed, making renewable energy more reliable and less dependent on weather conditions. Co-locating generation, storage, and consumers like data centres in one place is how renewable energy becomes truly efficient. Latvia is the start. Estonia is next. And we have the right partner to get there," said Lepasepp.

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