Litgrid said on Wednesday it has signed a battery installation contract, worth nearly 1.4 million euros, with Stiemo, a construction company in the district of Kaunas. The project is planned to be carried out within two years.

"The aim of this experimental 1 MW battery project is to test the possibilities for using BES systems under real operating conditions of the system," the power transmission system operator said in a press release.

A total of 11 areas where such battery systems could be useful have been identified, with most of them related to frequency management, it said.

Lithuania, Latvia and Estonia plan to synchronize their grids with continental Europe and desynchronize from the post-Soviet IPS/UPS system, known as the BRELL ring, by 2025.

Plans also call for building a new submarine power cable between Lithuania and Poland, and three synchronous compensators in each of the three Baltic countries.