Norwegian state-owned utility Statkraft said on Wednesday it had signed a power purchase agreement (PPA) for two battery energy storage systems (BESS) developed by Sweden’s OX2 in Finland, where rapid wind power expansion has increased price volatility.
According to Reuters, large-scale batteries are seen as essential for managing intermittent renewable energy generation such as wind power, helping ensure the reliability of supply by charging when output is high and emptying when the wind subsides.
Beginning in 2028, the seven-year deal will see Statkraft optimise the use of two large-scale battery systems of 110 megawatts (MW) and 125 MW being built by OX2 in western Finland.
The deal also offers OX2 a guaranteed revenue supporting the projects’ financing, the companies said.
“What we’re doing here, is we’re kind of buying access to the battery, and then we optimise the use of the battery,” Hallvard Granheim, who heads Statkraft’s markets business unit, told Reuters.
The batteries are being built at the same site as two of OX2’s wind farm projects and will share a grid connection point.
Finland currently has around 1,050 MW of electricity storage capacity, grid operator Fingrid said, but cautioned that finding the most suitable connection points was also important to avoid bottlenecks.
