Focus on the Balancing Market and Energy Storage Development at the Baltic Energy Market Forum

The Baltic States are at a crucial stage in their energy transition, where it is essential to balance market competitiveness, ensure grid security, supply reliability, and the sustainability of investments. These insights were shared during the panel discussion “Balancing Market development challenges” held on November 3in Vilnius as part of the Baltic Electricity Market Forum, which brought together experts from the energy sector and finance. 

The discussion addressed challenges in the electricity balancing market, the development of energy storage systems, and prospects for market integration.

Participants discussed the importance of synchronization with the continental European networks and related regulatory challenges, the development of the balancing market, infrastructure and financing issues arising from the rapid growth of energy storage facilities, as well as regional integration and cooperation opportunities among the Baltic energy markets.

Catharina Sikow-Magny, the European Commission’s Coordinator for the Baltic Synchronization Projects, emphasized the need for a consistent plan for market integration. According to her, decisions regarding the transition period must be based on data, the maturity of market structures, and competition, while also ensuring a reliable energy supply.

Giedrius Radvila, Head of Ancillary Services Development at Ignitis Gamyba, highlighted that the integration of new technologies requires careful preparation, testing, and centralized operations to ensure grid stability and service reliability. He noted that one of the biggest challenges was providing different balancing services simultaneously while integrating them with the synchronization process.

Dalia Tijūnienė, Head of Operations and Services Development at Litgrid, underlined the importance of optimizing grid and market capacities. She also emphasized the significance of integrating the Baltic markets with larger European markets to enhance competitiveness.

Giedrė Gečiauskienė, Member of the Management Board at the National Development Bank ILTE, pointed out that although Lithuania is seeing rapid growth in energy storage projects, a balanced and sustainable financing policy is needed to ensure optimal returns. According to her, projects cannot be financed without a clear assessment of market demand.

Rimantas Germanas, Head of the Lithuanian Energy Storage Association, stressed that the development of large-scale energy storage projects must benefit both consumers and industry, and that regional coordination among the Baltic States is essential for the efficient utilization of balancing capacities.

Forum participants agreed that in order to fully leverage the potential of balancing and energy storage capacities, regional coordination among the Baltic States is crucial — including joint market management and data exchange.

The Baltic Energy Market Forum is an annual energy market event organized by one of the three Baltic energy regulators. This year, the forum in Lithuania was hosted by the National Energy Regulatory Council (NERC).