Investor Ardian, in partnership with its operating platform eNordic, has taken the final investment decision (FID) to build Mertaniemi battery energy storage project in Finland.
The 38.5MW one-hour utility scale battery will support the Finnish power grid.
The investment, made from the Ardian Clean Energy Evergreen Fund (ACEEF), is the fund’s first in the BESS asset class.
Ardian assessed the merits of this move using OPTA, Ardian’s proprietary data analysis platform, which powers revenue and operational strategy across Ardian’s renewable portfolio globally.
The project is aligned with the ACEEF strategy in Finland, which aims to acquire and aggregate wind and solar power assets to benefit from economies of scale and to better utilise the grid interconnection points by developing battery storage assets.
This follows the acquisition of two wind farms in Finland in 2023, totaling more than 27MW.
The strategy is being executed by eNordic, a renewable energy platform developed and wholly owned by Ardian to serve the Nordic region.
The Mertaniemi project is a joint venture between ACEEF and Lappeenrannan Energia, a Finnish municipal energy company.
The scheme is due to complete in spring 2025 and is located near the Mertaniemi power plant in Lappeenranta.
In addition to the energy storage system, the project includes the development of facilities to protect the batteries from extreme weather conditions.
Once complete, the system will participate in the local grid’s frequency reserve markets and support the balancing of production and consumption in the grid.
The ACEEF will continue to execute its strategy to grow the platform in Finland, with the acquisition of further wind and battery assets in the region.
More broadly, Ardian’s investment portfolio in renewable energy in the Nordic countries now aggregates to €1.2bn.
It comprises wind parks totalling over 500MW, as well as renewable energy company Nevel, which is active in district heating, industrial utilities and biogas across Finland, Sweden and Estonia.
Recently Ardian announced acquisition of Verne Global, which owns and operates i.a. three data centres in Finland. This acquisition is still in the approval process with local authorities.
Ardian managing director of renewables infrastructure, Benjamin Kennedy said: “The investment in a new battery storage system, which is a first for Ardian’s clean energy evergreen fund, is an essential part of our strategy in Finland.
“We identified an opportunity to scale Finland’s wind capacity and connect battery storage technology to create a balanced and productive energy system.
“With our existing strong presence and network in the Nordic countries, and our expertise in financing and operating long-term renewables projects, Ardian is perfectly placed to foster this new market opportunity.”