Rolls-Royce Power Systems (LSE:RR.) has entered into agreements with Baltic renewable energy developer Sunly to build four large-scale battery energy storage facilities in Latvia, adding a combined 490MWh of storage capacity to support grid resilience and energy security in the region.
The announcement was made during the inauguration of Sunly’s new solar park in Valmiera, one of Latvia’s earliest hybrid renewable energy developments.
First Project Scheduled for 2027 Launch
Construction will begin with a battery storage facility in Valmiera, which is expected to enter service during the first quarter of 2027.
The remaining three installations are scheduled to become operational later that year, expanding Latvia’s energy storage infrastructure as renewable generation continues to grow.
Together, the projects are intended to improve grid reliability by helping balance fluctuations in electricity supply and demand.
Rolls-Royce to Deliver Turnkey Storage Solution
Under the agreement, Rolls-Royce will provide a fully integrated battery storage package built around its mtu EnergyPack technology and the mtu EnergetIQ energy management software platform.
The solution is designed to optimize the storage and release of electricity, helping grid operators maintain stability while supporting the integration of renewable power sources.
Rolls-Royce will also serve as the project’s general contractor, overseeing design, procurement and construction activities from start to finish.
Focus on Grid Stability and Energy Security
Andreas Görtz, president of the mobile and sustainable solutions business unit at Rolls-Royce Power Systems, emphasized the benefits of the company’s turnkey approach.
“As a general contractor, we offer our customers a single point of contact, which helps them reduce risks and complexity, ensure profitable performance and maximise long-term asset value.”
He added that the collaboration would contribute to strengthening regional energy infrastructure.
“Together with Sunly, we are delivering large-scale battery storage systems that will play a crucial role in strengthening grid stability and energy security in the Baltic region.”
Sunly Highlights Reliability and Cybersecurity Requirements
Sunly selected Rolls-Royce following previous cooperation in the Baltic market and the company’s ability to satisfy both technical and cybersecurity standards.
The renewable energy developer views battery storage as a critical component in improving the reliability of renewable energy generation.
Sunly Chief Executive Officer Priit Lepasepp said: “Our aim is to build an energy system that serves people – not just when the sun is shining. By combining solar power generation with battery storage, we can supply energy when it is needed. This makes renewable energy more reliable and less dependent on the weather.”
He also noted the importance of choosing a partner capable of meeting stringent security requirements.
“We have to meet strict cybersecurity requirements. It was therefore crucial for us to find a European partner that has already demonstrated its expertise in Latvia.”
Partnership Expands Beyond Latvia
The cooperation between the two companies is expected to extend into neighboring Estonia.
Rolls-Royce and Sunly have already signed a memorandum of understanding covering a separate 300MWh battery storage project in Risti, broadening their collaboration across the Baltic region.
The additional project highlights growing investment in energy storage infrastructure as governments and utilities seek to increase renewable energy penetration while maintaining network reliability.
Growing Presence in the Global Storage Market
Rolls-Royce Power Systems currently supplies mtu battery storage systems for more than 200 projects worldwide.
Once all contracted projects in the Baltic region are completed, the company expects its installed battery storage capacity there to exceed 1.5GWh.
The group already has an operational presence in Latvia, having supplied a battery storage system that has been serving transmission system operator Augstsprieguma tīkls since 2025.
The latest contracts further strengthen Rolls-Royce’s position in the rapidly expanding energy storage market, where demand continues to rise alongside renewable energy deployment across Europe.
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