Our latest analysis suggests that the Frequency Containment Reserve (FCR) buildout in the Baltic markets will likely be completed by mid-2026 at the latest.

The FCR phase is generally the period of highest financial returns for battery park operators. However, in the Baltics, we expect this period to be shorter than in the Nordic markets. The reason is twofold:

• Relatively shallow forecasted market demand, which limits long-term upside.

• Steadfast project developers, who are pushing projects forward quickly and accelerating capacity buildout.

This combination means that early movers in the Baltic BESS market are well-positioned to capture attractive returns during the FCR phase. After this stage, revenues are expected to normalize towards more conventional ROI levels, as market saturation and competition increase.

The Baltics are emerging as one of Europe’s faster-moving storage markets, with storage assets set to play a central role in balancing renewables and securing grid stability.