We advised Sunly in preparing and negotiating EPC contracts for the construction of Estonia’s and Latvia’s largest battery energy storage systems. The project forms part of a broader cooperation between Sunly and Rolls-Royce across the Baltic states, which includes five utility-scale battery energy storage systems in Latvia and Estonia with a combined capacity of nearly 800 MWh.

A landmark battery storage project in Estonia and Latvia

The cooperation between Sunly and Rolls-Royce began with concluding EPC contracts for four turnkey utility-scale battery energy storage systems in Latvia, with combined capacity of 490 MWh. The first project is being developed at Sunly’s Valmiera solar park, which is set to become one of Latvia’s first hybrid energy parks, with the remaining projects scheduled to follow during 2027.

In addition to the Latvian projects, Sunly concluded an EPC contract with Rolls-Royce for a turnkey 300 MWh battery facility at the Risti energy centre in Estonia, integrating solar and wind power generation with a data centre into a unified renewable energy ecosystem. Together, the Latvian and Estonian projects represent the largest battery storage deal with a privately owned company in the Baltics.

Strengthening energy security across the Baltics

Rolls-Royce acts as a single point of responsibility for the engineering, procurement, construction, and commissioning of the facilities under a one-stop-shop solution, reducing complexity and risks for Sunly. The projects will utilise the company’s mtu EnergyPack battery storage platform, which helps balance electricity supply and demand, supports renewable energy integration, and contributes to stable grid operation.

The projects developed in cooperation with Rolls-Royce are a major step forward in strengthening regional energy security and grid stability, coming into life at a time of growing demand for flexibility and balancing capacity in the Baltic electricity market following the region’s synchronisation with the European power grid. Upon its completion, the Risti energy centre in Estonia will combine battery storage, solar generation, planned wind power and a large-scale data centre in a single location, maximising efficiency and reliability.

Our services and client team

We advised Sunly on the legal aspects of the battery storage projects in Estonia and Latvia, including EPC contract structuring and negotiations, risk allocation, cybersecurity, NIS2-related and regulatory compliance matters relating to critical energy infrastructure projects. The EPC contracts were based on FIDIC Yellow Book (1999).

Our Estonian team was led by senior associate Kätlin Sehver and partner Kaupo Lepasepp and was supported by partner Mihkel Miidla, counsel Britta Retel and senior associate Anu Liinsoo.

Our Latvian team was led by partner Jorens Jaunozols and included partner Linda Sarane-Reneslace, counsel Inese Heinacka, senior associate Vita Berlaua, and associates Krišjānis Knodze and Juris Steņins.