Tsirguliina battery energy storage plant in Estonia will be the first BESS with key components produced solely in Europe

The first phase of the Zirgu BESS battery energy storage plant, with a capacity of 100 MW/200 MWh and currently being developed in Tsirguliina, Valga County, will become the first battery energy storage plant of this scale in Europe whose key components are manufactured in Europe. 

According to Mart Moora, member of the management board of the project development company Zirgu BESS OÜ, high expectations have been placed on the Tsirguliina battery energy storage plant in ensuring the security and reliability of Estonia’s entire electricity grid. The swift signing of the battery supply agreement brings closer to the day when the national transmission grid will gain an important additional pillar of support. “This is a large-scale power plant with black start capability, which can be used, for example, to restart a significant part of the electricity grid in the event of a major outage,” Moora explained. 

Under the agreement, the batteries for the Zirgu BESS battery energy storage plant will be supplied by South Korean technology giant LG Energy Solution.  The inverters will come from Spain, supplied by Power Electronics, while the batteries will come from LG Energy Solution’s battery factory in Poland.  

“LG Energy Solution has also been selected for our previous projects because it offers a premium-class product that may cost more, but compared to other suppliers, LG’s technology is more advanced and enables longer battery operation and more active participation in the electricity market over time,” said Raivo Videvik, co-owner of the Zirgu BESS battery energy storage plant and CEO of developer Diotech OÜ. 

“Estonia is increasingly developing into an energy market focused on future solutions, and we are pleased to be a trusted partner on this journey with our technology. The significance of the Zirgu BESS project lies in its status as a large-scale power plant with black start capability, which is of great importance for Estonia’s entire electricity grid,” said Kyuwon Heo, Head of Commercial / Grid ESS Europe, LG Energy Solution. 

Zirgu battery energy storage plant has the potential to become the largest in the Baltic states 

The co-owner of the Zirgu development project is Transcom AS. Its Board Member, Kaspar Kokk, said that the project is currently progressing at an excellent pace and that it cannot be ruled out that construction will be completed ahead of schedule, potentially before the end of March next year. “Reaching an agreement with LG Energy Solution at such a rapid pace once again confirms that the success of large-scale projects like this depends on the previous experience, contacts and know-how of the development partners,” Kokk said. 

In the first phase of the Zirgu BESS battery energy storage plant in Tsirguliina, a 100 MW / 200 MWh battery energy storage plant will be built. The high-voltage grid connection and substation infrastructure will be developed in a way that, if market demand and price volatility remain, allows the complex to be expanded within 6–9 months to up to 200 MW of power and 800 MWh of capacity. This would make it the largest battery energy storage plant in the Baltic states.  

The capital required for the initial investment has been raised from the shareholders of Diotech OÜ and Transcom AS, keeping the ownership structure 100% Estonian. 

The construction of the battery power plant is being financed by Swedbank.  

According to Mihkel Utt, Head of Corporate Banking at Swedbank, the Zirgu BESS project combines several strategically important objectives. “The project strengthens Estonia’s energy security, increases storage capacity in a rapidly changing electricity market, and creates the conditions for a greater share of renewable energy. It also demonstrates that companies backed by Estonian capital can, in cooperation with leading global technology partners, deliver high-impact infrastructure projects. Supporting investments of this kind helps strengthen the competitiveness of both Estonia’s economy and its energy system,” said Utt. 

According to Mari-Liis Küppar, a member of the Management Board of the Estonian Business and Innovation Agency (EIS), South Korea is one of EIS’s main target countries among distant markets. 

“The active participation of the Zirgu project developers in the business visits to South Korea organised by EIS have helped create valuable contacts and build long-term partnerships. This is already another example of energy-sector cooperation between Estonian and South Korean companies, as well as a good example of how businesses and national support organisations can jointly arrive at solutions that strengthen both energy security and Estonia’s position as a target country for clean technology investments,” Küppar noted. 

The purpose of the battery power plant is to help balance the electricity market in Estonia and the Baltics, mitigate electricity price fluctuations in the region, and strengthen market stability in a way that serves the interests of our people and businesses while ensuring that the economic value created remains in Estonia. 

About the Zirgu BESS battery industrial park 

The goal is to develop a battery industrial park with up to 200 MW of power and 800 MWh of storage capacity. 

- In the first phase of the project, Zirgu BESS OÜ will build a 100 MW / 200 MWh battery energy storage plant. 

- The construction investment for Phase I of the Zirgu project is approximately 35 million euros. 

- The battery industrial park is designed to accommodate up to 800 MWh of batteries. Phase I is designed and supplied so that additional capacity can be built within a timeframe of less than one year. 

- The capital required for the initial investment has been raised from the shareholders of Diotech OÜ and Transcom AS, keeping the ownership structure 100% Estonian. 

- The project is financed by Swedbank.  

- Construction preparations began in February 2026. 

- Phase I will be completed by the end of Q1 2027. 

- The planning of technology and delivery schedules is based on previous cooperation experience with LG Energy Solution both in Estonia and in foreign markets.