Neoen has provided notice to proceed to Nidec, signalling the start of construction of the 54MW Yllikkälä Power Reserve Two battery in Finland.
Storage expert Nidec will have the overall responsibility of the construction project and will supply the battery containers, battery cells and inverters.
The 56.4MW/112.9MWh lithium-ion two-hour battery will be the largest in the Nordics said Neoen. It will be located in Yllikkälä, near Lappeenranta city centre and approximately 100metres from Neoen’s first big battery in Finland, the 30MW/30MWh Yllikkälä Power Reserve.
YPR2 will be connected to Fingrid’s Yllikkälä substation via an underground cable and is set to be operational in the first half of 2025.
In line with the company’s develop-to-own model, Neoen owns 100% of Yllikkälä Power Reserve Two and will be the long-term operator of the asset.
The battery will operate in Fingrid’s reserve markets, said Neoen and will provide Findgrid with fast-response ancillary services to help maintain the balance between production and consumption, efficiently improving the power system’s frequency and security as well as facilitating the integration of renewable energy assets.
Yllikkälä Power Reserve Two is Neoen’s third battery in the Nordics. The developer is a leading owner and operator of batteries globally, with a battery storage portfolio of 1489MW/3032MWh in operation or under construction.
“I would like to thank Fingrid and the municipality of Lappeenranta for their continuous support,” said Neoen country director for Finland Jerri Loikkanen.
“As a pioneer and global leader in the storage field, we are delighted and very proud to be launching the construction of the largest battery in the Nordics.
“With now over 770MW of capacity in operation or under construction in Finland, we are more determined than ever to further increase our contribution to our country’s energy independence and objective of reaching carbon neutrality by 2035.”
Fingrid president and chief executive Jukka Ruusunen said: “Electrification is one of the key measures by which Finland will achieve its climate goals.
“The electricity system is expanding and requires more flexibility in order to balance supply and demand. Batteries are excellent sources of rapid flexibility.
“It is great that pioneers such as Neoen are moving quickly and will significantly increase the supply in Fingrid’s reserve markets where we are balancing production and consumption in real time.”
Acting mayor of Lappeenranta Tuomo Sallinen said: “Neoen’s investment decision is extremely important to Lappeenranta and will support Lappeenranta’s goal to act as a European trailblazer in renewable energy, electricity storage solutions and innovative green electrification business.”
Neoen chairman and chief executive Xavier Barbaro added: “I congratulate our team for the hard work that has enabled us to launch the construction of our second large battery in Finland.
“Storage is crucial in the energy transition, as it allows for a higher share of renewable energy in the power mix. In Finland, as in the rest of the world, we will accelerate the deployment of large-scale and long-duration batteries to foster a clean energy future.”