Capalo AI, a sustainable technology company specializing in AI-driven optimization, trading, and aggregation services for energy storage, has signed an agreement with Aretis Group, one of the most active battery energy storage and renewable energy developers in Latvia, to optimize and trade a portfolio of hybrid and standalone battery energy storage assets across the country.
The agreement includes four projects: the Līvāni Hybrid and Krāslava Hybrid solar PV and BESS hybrid sites in eastern Latvia, as well as two standalone battery energy storage systems located in Riga, Iļģuciems BESS and Torņakalns BESS. The hybrid sites combine 4.4 MW / 10.32 MWh and 4.0 MW / 10.32 MWh battery systems with corresponding solar PV capacities of 4.4 MWp and 4.0 MWp, and are among the largest operational hybrid assets in the Latgale region. The Riga-based standalone systems, each sized at 14.99 MW / 40 MWh, will be among the largest battery energy storage assets in the capital upon commissioning.
The Līvāni and Krāslava hybrid parks became operational in March 2026, with trading commencing shortly thereafter. The standalone battery systems in Riga are scheduled for commissioning in July 2026, after which the full portfolio will participate in Latvian balancing and wholesale electricity markets, including FCR, aFRR, mFRR, as well as spot and intraday markets, through Capalo AI’s automated optimization platform.
Capalo AI will provide end-to-end optimization and trading services across the portfolio, including route-to-market access, Balance Responsible Party (BRP) and Balance Service Provider (BSP) services. By coordinating battery and hybrid assets through a single optimization framework, Capalo AI enables dynamic response to market conditions while ensuring efficient and reliable operation.
The four projects highlight Aretis Group’s current focus on battery storage and hybrid infrastructure in Latvia. The Līvāni and Krāslava hybrid sites strengthen local power supply through distribution-level connections, while the Riga standalone BESS projects expand flexible capacity in one of the country’s most important demand centres. Together, they illustrate the growing role of storage and hybrid assets in supporting market integration, grid stability, and renewable energy growth in Latvia.
“Battery storage and hybrid assets are becoming a core part of modern energy infrastructure. At Aretis Group, we combine disciplined project development, hands-on execution, and long-term commitment to build assets that create value for both the power system and investors. With Capalo AI, we have a strong partner to support the commercial performance of our portfolio as Latvia’s flexibility markets continue to develop,” said Artūrs Plūme, CEO of Aretis Group.
“We are delighted to partner with Aretis to trade and optimize their landmark hybrid portfolio in Latvia. By trading these assets dynamically across every revenue stream, we unlock their full potential, supporting both system stability and long-term value creation,” said Henri Taskinen, CEO of Capalo AI.
