Baltic Storage Platform secures landmark €85.6 million financing
A First-of-Its-Kind Financing in the Baltic Region
This groundbreaking transaction represents the first project financing in the Baltic countries that is exclusively structured around the revenues generated by energy storage assets.
This major milestone demonstrates the private sector’s direct investment in strategic energy infrastructure, offering a concrete response to the Baltic region’s security-of-supply and energy independence challenges.
Both the EBRD and the NIB financing benefits from a first-loss risk cover from the EU under its InvestEu program.
This collaboration between multilateral institutions and private investors sends a strong signal: large-scale storage projects are now considered bankable assets capable of attracting private capital to support Europe’s energy transition.
A Strategic Project for Europe’s Energy Sovereignty
The financing will support two projects located in Kiisa and Aruküla, both approximately 25 km from Tallinn. With a combined capacity of 200 MW of power and 400 MWh of storage capacity, Hertz 1 and Hertz 2 will form one of the largest battery complex in continental Europe. These assets will play a critical role in stabilizing the Baltic power system following recent synchronization with the European grid, and in accelerating the phase-out of fossil fuels.
Hertz 1 also features a major technical innovation: connection to the 330 kV transmission network via an underground cable, — an unprecedented development in Estonia that enhances resilience and facilitates renewable integration.
Construction well underway
Hertz 1 and Hertz 2 are already well underway. Hertz 1, located in Kiisa, has been energised on October 1st 2025. with commissioning scheduled for end-2025, and the full suite of grid services expected by Q1 2026. Hertz 2 is already under construction and is scheduled to enter into operation by the end of 2026.
