Electricity transmission system operators Litgrid (Lithuania), Augstsprieguma tīkls (Latvian) and Elering (Estonia) have announced the launch of the Baltic balancing capacity market. The new market will provide the reserve capacity needed for system balancing and frequency management after the Baltic states' electricity systems disconnect from the Russian-controlled IPS/UPS system and synchronise with continental Europe. In total, the market demand for balancing capacity in the Baltic States in 2025 will reach about 1,500 MW. The demand for balancing capacity is projected to increase with the growth of renewable energy production and the increase in the number of prosumers.
After the Baltic states disconnect from the Russian power grid on 8 February 2025, the three countries will operate in isolated mode for about 24 hours to test their power levels, to be later integrated into the European power grid via Poland. The synchronisation project represents a €1.6bn investment from the Baltic states and Poland.
To date, Lithuania, Latvia and Estonia, together with Russia and Belarus, operate in the IPS / UPS system, in which the frequency of electricity is centrally regulated in Russia. Synchronization with continental Europe should ensure independent, stable and reliable management of the Baltic states' electricity.
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