The Baltic States are at a pivotal moment in their energy transition, where it is essential to strike a balance between market competitiveness, grid security, supply reliability, and sustainable investment. These key insights were highlighted during the panel discussion “Balancing Market Development Challenges”, held on November 3 in Vilnius as part of the Baltic Electricity Market Forum, which gathered experts from the energy and financial sectors.
The discussion focused on the challenges facing the electricity balancing market, the development of energy storage systems, and the prospects for further market integration. Participants explored the importance of synchronization with continental European networks, regulatory hurdles, the evolution of the balancing market, and the financing and infrastructure issues that arise from the rapid growth of energy storage facilities. They also discussed opportunities for greater regional cooperation and integration among the Baltic energy markets.
Catharina Sikow-Magny, the European Commission’s Coordinator for the Baltic Synchronisation Projects, emphasised the importance of a coherent and data-driven approach to market integration. She noted that decisions during the transition period should be based on market maturity and competition levels, while ensuring a reliable energy supply.
Giedrius Radvila, Head of Ancillary Services Development at Ignitis Gamyba, pointed out that integrating new technologies requires thorough preparation, testing, and centralised operations to maintain grid stability and service reliability. One of the main challenges, he noted, is delivering multiple balancing services simultaneously while aligning them with the synchronization process.
Dalia Tijūnienė, Head of Operations and Services Development at Litgrid, stressed the need to optimise both grid and market capacities. She underscored the value of deeper integration with larger European markets to strengthen competitiveness.
Giedrė Gečiauskienė, Member of the Management Board at the National Development Bank ILTE, highlighted that although Lithuania is experiencing rapid growth in energy storage projects, a balanced and sustainable financing strategy is vital to ensure sound returns. She emphasized that projects should only proceed with a clear understanding of market demand.
Rimantas Germanas, Head of the Lithuanian Energy Storage Association, noted that large-scale energy storage development must deliver benefits to both consumers and industry. He emphasized the importance of regional coordination among the Baltic States to ensure efficient use of balancing capacities.
Forum participants unanimously agreed that effective regional cooperation — including joint market management and data exchange — is crucial to fully harness the potential of balancing and energy storage systems.
The Baltic Energy Market Forum is an annual event organised by one of the three Baltic energy regulators. This year, the forum was hosted in Lithuania by the National Energy Regulatory Council (NERC).
