Tom Naburg
Almost a year has already passed since Latvia disconnected from the BRELL electricity network, which means that to strengthen energy security, diversified production and the ability to store renewable energy, turning it into stable power, are needed.
That’s where battery systems (BESS) come to the rescue. In this regard, Latvia has taken a serious step in this direction, as AS “Augstsprieguma tīkls” has issued the first permit for a hybrid park that will combine solar and wind energy, as well as battery systems, in one connection. Such hybrid parks have quickly become the industry standard and BESS markets in countries such as the UK and Italy are growing very fast, Hungary, Austria and Poland are also investing billions in the development of such infrastructure, and we cannot stand still.
Solar, wind and battery systems together
Until now, only combinations of solar energy and battery energy storage systems or wind farms separately have been approved. The “Sunly” hybrid park is the first project in which all three elements are combined into one, it has received all the necessary permits, passed the initial environmental impact assessment process, it has an approved local plan, as well as an additional strategic environmental impact assessment, and its design phase is now starting. At the same time, we hope that it will not be the only park of this type in Latvia, because such solutions are critically important not only for the energy sector, but for the security of the country as a whole.
Convert renewable energy into stable power
Solar and wind energy are not available continuously – solar energy is best used in the summer months, while the greatest wind potential is in the second half of the year – from October to March. The efficiency of a solar power plant is on average 12% per year, and in the case of a wind plant it reaches up to 40%, but BESS compensates for this volatility and converts renewable energy into stable power. By connecting the sun, wind and BESS in one connection, it is possible to achieve a significant improvement of the system – to use the transmission infrastructure more efficiently, ensure a lower price of electricity, as well as create an additional system reserve in critical situations. In Latvia, the importance of BESS has increased especially after the disconnection of the Baltics from the BRELL electricity network in February of this year – now we maintain the frequency ourselves, the balancing market works, so the system needs more flexibility. The more decentralized the energy system is, the more secure it is against external risks.
An integral link in the energy development chain
BESS is becoming an integral link in the energy development chain and one of the most important tools in ensuring security. This is also confirmed by the experience of other European countries: the United Kingdom and Italy are currently mentioned as the “hottest” markets where BESS is developing the fastest, also thanks to clear regulation and state support. Also in Central Europe, a significant upsurge can be observed – in Hungary, Austria and Poland, investments in BESS infrastructure in recent years have been measured in the amount of several billion euros.
The need for appropriate regulatory framework
Hybrid parks, when several technologies are combined at one connection point – solar, wind, batteries – are innovative and forward-looking solutions that also seem interesting to foreign investors. International heavyweights such as the European Bank for Reconstruction and Development, the European Investment Bank, SEB and other partners are participating in the financing of the company’s developed park in the Valmiera region. In order to attract investments for such projects, it is essential that the regulatory framework does not oppose the combination of several technologies at one connection point. In recent years, energy has proven itself as one of the pillars of the country’s development, capable of attracting foreign capital. In addition, it is not possible to finance large energy projects only with local resources. In the energy strategy of Latvia until 2050, it is predicted that investments of at least 34.4 billion euros will be needed in the sector. The goal cannot be achieved without foreign investment.
Cooperation at all levels
Therefore, the next essential step is to ensure that these first practical examples convincingly demonstrate the advantages of hybrid parks for the energy system of Latvia. The operative and professional activity of the responsible institutions is important, and here the work of AS “Augstsprieguma tīkls” and the State Environment Service should be highlighted. At the same time, it should be mentioned that the developers of the industry also have a special responsibility – to implement projects in a transparent and professional manner, to establish a close dialogue with the local community and to explain both the technical and economic benefits to the residents. The higher the quality of the first projects, the faster Latvia will be able to develop a modern, safe and sustainable energy infrastructure.
Latvia’s energy development is currently at a turning point – hybrid parks, combining three technologies in one connection, and energy storage systems are becoming a practical solution, not a vision of the distant future. The first project of its kind shows that Latvia has all the prerequisites to become a modern energy country based on technology and security. The most important thing now is not to lose momentum and use this moment as an opportunity for a faster breakthrough.
The author is Sunly executive director in Latvia.
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