⚡️ €50m battery project in Grobiņa: deal structure, owners and business model
At a media event organised by Latvia’s Investment and Development Agency (LIAA), Slovenia-based NGEN Group announced its entry into the Latvian market through the acquisition of 100% of SIA “Liepāja ESS”.
The company is developing a stand-alone battery energy storage system (BESS) near the Grobiņa substation in Dienvidkurzeme.
📊 Project parameters
▪️ Capacity: 100 MW
▪️ Storage volume: up to 200 MWh
▪️ Investment size: approximately €50 million
▪️ Grid connection: direct connection to transmission system operator Augstsprieguma tīkls (AST)
▪️ Construction completion planned in 2026 with commercial operation expected afterwards
The project will use Tesla Megapack industrial battery systems.
🏢 Deal structure and Latvian development side
Prior to the acquisition, the project company SIA “Liepāja ESS” was jointly owned by two Latvian corporate shareholders:
▪️ SIA “Contrario Investments” – linked to entrepreneur Kārlis Maulics
▪️ SIA “JASI M” – owned by entrepreneur Jānis Sproģis
These companies represented the local development side of the project, preparing the site, grid connection and permitting before transferring the project to a strategic international investor.
Following the transaction, NGEN Group consolidated full ownership of SIA “Liepāja ESS”.
👤 About the investor
NGEN Group is a Slovenia-based private energy company specialising in energy flexibility, battery storage and virtual power plant solutions across European electricity markets.
The company is backed by private investors including entrepreneur Damian Merlak, co-founder of cryptocurrency exchange Bitstamp, and is led operationally by energy executive Roman Bernard.
Bernard is also co-founder of the Slovenian energy and carbon trading company Belektron, linking NGEN’s investment strategy to experience in electricity and emissions trading markets.
Merlak’s investment in storage reflects a business trajectory linked to financial and carbon allowance trading markets, where revenue is driven by price volatility, trading optimisation and balancing services — the same economic environment in which battery storage assets operate The project reflects a broader trend of Central European private capital expanding into Baltic energy infrastructure.
⚙️ Business model
Unlike traditional power generation, stand-alone storage projects generate revenue by providing system flexibility services, including:
▪️ frequency regulation
▪️ balancing capacity markets
▪️ intraday electricity trading
▪️ price volatility arbitrage
The direct connection to AST positions the Grobiņa battery as a market-driven infrastructure asset rather than a subsidy-based energy project.
🌍 Strategic context
The project is being developed following the Baltic states’ disconnection from the BRELL power system and integration into continental European networks, increasing the need for domestic balancing capacity.
📈 What the model suggests
The operational model publicly described by NGEN — focusing on aggregation of storage assets and participation in flexibility markets — suggests that the Grobiņa project may represent only the first step in building a broader battery storage portfolio in the Baltic region. BSM@2026
Image: photos/photo_188@04-02-2026_18-36-02.jpg