In Lithuania, we already have thousands of small-scale electricity producers who have installed energy storage systems. A large portion of these were installed with the help of government subsidies. However, few homeowners who have installed a storage system realize that it is possible to generate significantly greater value than is currently being achieved. If the battery is charged and discharged solely based on the energy generated by the solar power system and household consumption, a significant portion of the storage system’s potential remains untapped.
During the summer months, as soon as the morning sun rises, the battery begins to charge, fills up by noon, and in the evening, it releases the stored energy to power the home. This allows you to use less electricity from the grid and, depending on your chosen billing method, reduce your grid usage costs. However, the storage unit does not respond when there is a shortage of energy in the grid, when there is a surplus, or when the market price of energy rises. In winter, when solar power plants generate little energy, some of these storage units are virtually inactive.
Untapped Potential Worth Millions of Euros
Energy expert Martynas Nagevičius, in a public Facebook post, estimates that the untapped theoretical revenue potential of small storage units already connected in Lithuania could reach as much as 45–50 million euros per year. Of course, this is not an amount that can simply be distributed among battery owners.The storage index published by Nord Pool and Clean Horizon shows what the total revenue potential of batteries optimally managed in the markets could be. The actual return would be reduced by the aggregator’s fee, energy losses, battery wear and tear, grid fees, and technical limitations. Nevertheless, the gap between the current use of storage units and the potential revenue indicates that the issue warrants attention.
The Solution: Pooling Storage Units into a Virtual Power Plant
One of the most realistic solutions is to pool many small energy storage units into a virtual power plant. This could be managed by an aggregator. This is a company that remotely manages many small storage units as a single, larger facility. The storage units would be charged in a coordinated manner when electricity supply is high and prices are low, and discharged during peak hours or when the system needs balancing. The revenue generated would be shared between the aggregator and the storage unit owners.
Litgrid announced as early as 2025 that it would integrate a virtual power plant into the balancing market. Therefore, this aggregation model is no longer merely theoretical in Lithuania. However, to utilize household storage units in this way, clear contracts, appropriate metering and tariff rules, compatible equipment, and a simple method for transferring control of the storage unit to the aggregator are still needed.
It’s essential to consider future possibilities even before installing the system
A storage unit’s value is determined not only by its capacity or price, but also by its technological flexibility. If the equipment is chosen incorrectly, it may simply be impossible to connect it to smart management systems or the aggregator’s network in the future. Therefore, it is essential to consider these possibilities before installing the system. So, if you are planning to install an energy storage system, consult with PINUS LT specialists to ensure that your chosen solution is ready to meet not only today’s challenges but also those of the future.