Major Investments in Finnish Energy Storage
Independent Power Producers (IPPs) in Finland, Exilion and Nala Renewables, are making substantial strides in enhancing the country's energy infrastructure by ordering advanced Battery Energy Storage Systems (BESS). These strategic investments underscore Finland's commitment to grid stability and the integration of renewable energy sources, with both projects anticipated to be operational by 2026.
Exilion Partners with Merus Power for Eastern Finland Project
Exilion, a Finnish investment and asset management company with a strong focus on renewable energy, has signed an agreement with Merus Power for a 30MW/66MWh battery energy storage system. This project, valued at approximately €17 million (US$19.7 million), will be located in Kuortti, Mäntyharju, in Eastern Finland. Merus Power is not only delivering the BESS but also acted as the project developer. The system will incorporate grid-forming technology, which is crucial for supporting the grid's natural inertia and enhancing overall power system stability. Exilion is a significant player in Finland's renewable energy sector, managing an extensive portfolio that includes wind farms and one of the country's largest solar power plants.
Nala Renewables Initiates 50MW/100MWh Project with Sungrow
In a parallel development, Nala Renewables has commenced construction on a 50MW/100MWh BESS project in Kauhava, Finland. For this undertaking, Sungrow, a global leader in renewable energy technology, will supply twenty-two 5MWh units of its PowerTitan 2.0 BESS. The project is being built by Finnish construction company Keski-Suomen Betonirakenne Oy (KSBR), with long-term financing secured from Societe Generale. Once operational by the end of 2026, the battery capacity will be utilized by commodities firm Trafigura for its European trading activities. Nala Renewables is a joint venture between Trafigura and funds managed by IFM Investors, and this project is part of its broader strategy, which includes a total Finnish portfolio exceeding 300 MW of battery storage capacity.
Finland's Growing Battery Storage Market
These projects highlight the rapid expansion of Finland's energy storage market, driven by the increasing share of renewable energy and the country's ambitious goal of achieving carbon neutrality by 2035. Battery Energy Storage Systems are vital for providing short-term flexibility, balancing electricity production and consumption, and ensuring grid stability in an increasingly volatile energy market. The market is also seeing a shift towards longer-duration systems, such as the 2-hour systems being deployed by these IPPs.
5 Comments
Africa
While these battery projects are crucial for integrating renewables and stabilizing the grid, the long-term environmental impact of battery manufacturing and disposal needs consistent monitoring and innovation.
Coccinella
Too much reliance on singular tech. We need diverse energy solutions.
ZmeeLove
Land use for these huge facilities is concerning. What about local impact?
Habibi
While it's great to see major investments in energy storage, it's important to remember that 'carbon neutrality' by 2035 is an ambitious goal that requires a multi-faceted approach, not just large-scale batteries. Other energy sources must also be considered.
Bella Ciao
It's encouraging to see Finland investing in energy storage for carbon neutrality, but we should also question the financial models and ensure these investments truly benefit the public, not just private trading firms.