Minimizing Transition Costs: Choice of Green Energy Mixes and Storage Solutions in the Baltic Power System Conditions

Utilizing large-scale renewable energy sources and energy storage solutions is the key to achieving a low-emission and climate-neutral future. This paper evaluates the power systems balancing issue by examining the performance of synthetic methane production and storage using nuclear, bioenergy, solar, and wind energy sources. The selected approach shows significant potential for Latvia and Baltic power systems due to its ability to leverage existing district heating and natural gas infrastructure, including gas pipeline transmission and distribution networks, gas cogeneration power plants, and large underground and liquefied gas reservoirs. We use a power systems simulation model that includes sub-models of various energy sources and interconnections with Sweden, Finland, and Poland, considering Nord Pool electricity market rules. The optimization methodology incorporates factors such as consumption forecasting, renewable energy potential, electricity price forecasting, technological capabilities, and storage capacities. The paper outlines a possible path to a green transition of energy sector, establishing a cost-effective, sustainable, and resilient power system infrastructure in the Baltic States. The findings are of interest to energy transition policymakers, planners and decision-makers.