The launch of the Auvere battery storage facility marks a turning point in Estonia’s energy landscape. With a capacity of 53 megawatt-hours—enough to cover just 2–3% of Estonia’s average hourly electricity consumption—this pilot project may seem modest in scale. Yet its impact on the stability, flexibility, and efficiency of our electricity system is profound.
A Strategic Innovation at a Critical Time
Commissioned shortly before the Baltic states disconnected from the Russian electricity grid, the Auvere facility is Estonia’s largest battery storage installation to date. Its ability to respond instantly to fluctuations in supply and demand has helped stabilize the grid during peak consumption periods and unexpected outages. By reducing the cost of balancing the system, it has also shielded consumers from price spikes.
Why Speed Matters More Than Size
Since its launch, the Auvere battery has consumed 16.4 GWh from the grid and returned 15 GWh—using 1.4 GWh for internal operations. This high efficiency demonstrates that battery storage can support the grid without significant energy loss.
Its most critical contribution lies in its response speed. The battery plays a key role in frequency containment, a service that requires reacting to changes in grid frequency within milliseconds. Since the opening of the Baltic frequency containment reserve (FCR) market in February, Auvere has covered up to 29% of total FCR demand across the region. This is made possible by automated control software that continuously monitors the grid and adjusts the battery’s output in real time—far faster than any human could.
This same software can also be applied to wind and solar parks, making them controllable assets in balancing markets and further enhancing system flexibility.
Supporting Grid Stability Across Multiple Markets
Beyond frequency containment, the Auvere battery also participates in other balancing markets, including automatic (aFRR) and manual (mFRR) frequency restoration reserves. These services help maintain grid stability, albeit with less stringent response times. In many cases, Auvere’s offers have served as the last resort in these markets, helping to keep balancing service prices in check.
Lower balancing costs benefit the entire system. They encourage investment in renewable energy, reduce the financial burden on electricity sellers, and ultimately allow consumers to enjoy more favorable electricity prices.
Real Benefits for the System, Consumers, and Investors
The Auvere pilot project has proven that smart storage solutions—combined with intelligent control software—deliver measurable benefits. They enhance energy security, support the integration of renewables, and reduce reliance on fossil fuels.
And the financial incentives are compelling. In August, a battery system with 1 MW of power and 2 MWh of storage capacity could have earned approximately €9,900 from the day-ahead market alone. If it had also participated in other energy markets, including frequency reserves and intraday trading, its monthly revenue could have reached €75,000—7.6 times more.
While returns may decrease as more storage capacity enters the market, the current landscape is still in its early stages. This moment is reminiscent of the pre-2018 solar energy boom, when early adopters reaped the greatest rewards.
Looking Ahead: A Storage Boom on the Horizon
With falling technology costs and rising efficiency, energy storage is poised for rapid growth. Support measures will play a key role in accelerating adoption. The success of the Auvere pilot confirms that storage solutions should become a central pillar of Estonia’s energy policy—driving innovation, improving resilience, and delivering value across the board.
Kristjan Kuhi
Member of the Management Board, Eesti Energia
