The Lithuanian company Ignitis and the German firm emsys VPP are expanding their partnership in the field of Virtual Power Plants (VPP) to strengthen the stability of the Baltic electricity grid. As part of this expanded collaboration, the VPP implemented by emsys VPP for Ignitis will be enhanced with functions to provide balancing energy on the Baltic electricity market. By integrating battery storage systems into the VPP, the companies are creating the digital infrastructure required to support frequency control and stabilise the Lithuanian electricity grid.
The growing importance of flexibility in the Lithuanian electricity grid
As the share of variable renewable energy sources grows, flexible resources that can respond quickly to changes in the electricity grid are becoming increasingly important. System stability has become even more crucial since Estonia, Latvia and Lithuania synchronised with the continental European electricity grid in February 2025. On 8 February 2025, the Baltic states disconnected from the Russian-controlled IPS/UPS system and successfully joined the continental European synchronous area (ENTSO-E) the following day. This transition brings with it new requirements for frequency control and the balancing of short-term fluctuations in the electricity grid.
“By expanding our partnership with Ignitis, we are creating new opportunities to utilise flexible assets in the renewable energy market and for grid stabilisation,” says Eike Arndt, Managing Director of emsys VPP. “Battery storage systems, in particular, can respond very quickly to changes in the grid and therefore play a key role in increasing the flexibility of the electricity grid.”
From the Virtual Power Plant to integrated flexibility trading
Ignitis and emsys VPP have been working together since 2024. The Virtual Power Plant was originally implemented to support the direct marketing of Ignitis’s portfolio of around 650 MW. The collaboration also includes generation forecasts for the wind and solar portfolio. With the latest expansion, the VPP can now integrate flexible assets to provide balancing energy – a further step towards strengthening grid stability whilst promoting the integration of renewable energy. Battery storage systems are already being successfully traded on the intraday market.
Pre-qualification of battery storage systems for aFRR and mFRR
In order to participate in the balancing market, the relevant installations must be technically connected and pre-qualified. They must also be connected to the control system of the Lithuanian transmission system operator, Litgrid. The current focus of the project is on automatic and manual frequency restoration reserves (aFRR and mFRR). In future, the solution could be extended to include other sources of flexibility, such as wind and solar power stations.
“The expansion of the VPP to include the balancing service module is an important next step in our collaboration with emsys VPP,” says Aivaras Slivikas, Head of Short-Term Trading at Ignitis. “By pooling battery storage systems within our virtual power plant, we can respond more precisely and flexibly to the daily demands of the electricity and balancing markets, whilst maximising the value generated by these systems.”
Balancing energy keeps the grid frequency stable
Balancing energy compensates for short-term fluctuations between electricity generation and consumption, thereby helping to maintain a stable grid frequency of 50 Hz. If generation falls unexpectedly, positive balancing energy can be activated by increasing generation, reducing consumption or feeding energy from storage systems into the grid. Conversely, negative balancing energy is activated when there is a surplus of electricity. The required response time determines whether Frequency Containment Reserves (FCR), Automatic Frequency Restoration Reserves (aFRR) or Manual Frequency Restoration Reserves (mFRR) are deployed. These services operate over different time scales and work together to restore balance to the electricity grid.
This project is funded by the Federal Ministry for Economic Affairs and Energy as part of the ‘Solutions for Renewable Energy’ programme under the German Energy Solutions Initiative.
