Southern Estonia to Build Large Battery Storage Plant Using European-Made Tech

Local company Zirgu BESS and South Korea's LG Energy Solution signed a supply agreement on Wednesday for a battery storage facility in Tsirguliina, Valga County.

The first phase of the project will have a capacity of 100 megawatts (MW) and storage of 200 megawatt-hours (MWh), with a second phase expanding to 200 MW and up to 800 MWh.

Zirgu BESS board member Mart Moora said the facility will help smooth out electricity price swings by storing power when prices are low and releasing it when prices rise. "When electricity is too expensive, we will try to bring prices back down," Moora said. "And when electricity is too cheap for producers, we'll help them sell it later at more average prices."

Officials say the facility should also help stabilize Estonia's power system following the Baltic countries' desynchronization from the Soviet-era and Russian-controlled BRELL grid early last year. "It's true periods of very low prices will become less common, but [price] spikes will disappear as well," said Climate Ministry deputy secretary general Jaanus Uiga. "Batteries also help us balance the power grid. After synchronizing with Continental Europe last February, we have to maintain frequency on our own. That money will now stay in our region," he added.

Key components for the project will come from Europe: batteries – the same ones used at the Auvere battery storage facility – will be manufactured in Poland, and inverters will be supplied from Spain. Developers estimate that choosing European technology instead of more common Chinese equipment increases upfront costs by about 20 percent.

LG Energy Solution executive Kyuwon Heo said the company has been preparing for possible future European regulatory and trade changes for years. "We see the future in cooperation with European companies and countries, regardless of cost," Heo said.

The Tsirguliina facility is expected to come online in April 2027.