When commercial operations begin in 2026, the system will balance the Finnish electricity grid and support the growth of renewable energy in Finland.
The groundbreaking ceremony was held on Monday, May 26, in Nivala, in the area where the battery energy storage will be built. The groundbreaking ceremony is a significant milestone in the development of the project, and was attended by representatives from the City of Nivala, Fingrid and partner companies.
“We are proud to announce the start of construction in Nivala” said Nivala Mayor Päivi Karikumpu. “This investment will strengthen the local economy and significantly support Finland's broader energy goals. We look forward to continuing our close collaboration on this significant project.”
The continued development of Finland's renewable energy production, mainly through wind power, is in line with the national energy strategy, which aims to achieve carbon neutrality by 2035. However, the increase in renewable energy production will bring more variability to the Finnish energy system and increase the need for flexibility. Energy storage systems offer a solution to this.
“This groundbreaking ceremony is an important moment for Finland’s energy transition and a concrete step towards a more flexible, sustainable and low-carbon energy system” added Jussi Jyrinsalo, CEO of Fingrid. “We welcome the contribution of Ingrid Capacity and Locus Energy in our joint mission to enable a reliable renewable energy-based electricity grid.”
The 70 MW/140 MWh project is a strategic investment that supports Locus Energy's goal of creating a system premium by optimising the production of various assets in the portfolio after commercial operation begins in 2026. Battery energy storage can, together with hydropower, balance the erratic production of wind and solar power plants, allowing Locus Energy to manage assets at a system level.
“Different energy production methods have their own characteristics” said Niklas Sörensen, founder and CEO of Locus Energy. “Some produce baseload energy, some variable energy and some regulated energy. Together with batteries, a workable balance can be created in the energy system. This project reflects the growing synergy between energy storage and renewable energy production. We are excited to deepen our collaboration with Ingrid Capacity in another important market area.”
The Nivala battery energy storage project is the second collaboration between Locus Energy and Ingrid Capacity. The first project, currently under construction, consists of 13 new grid-level battery energy storage facilities in southern Sweden. The project aims to add a total of 196 megawatts of flexible capacity to the Swedish electricity grid in price zones SE3 and SE4.
SEB Nordic Energy focuses on direct investments in renewable energy infrastructure projects in the Nordic countries. Investments are made in small-scale hydropower, wind power, solar power and geothermal energy, both through the construction of new plants and the modernization of existing plants, with the aim of improving efficiency and energy production. The fund is open to professional investors with an investment horizon of more than 15 years and is a so-called Article 9 fund with the objective of sustainable investment.
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