Neoen has provided notice to proceed to battery provider Nidec to start construction of a 40MW energy storage project in Sweden.
The 40MW/40 megawatt-hour Storen Power Reserve will be located in the municipality of Ragunda, approximately 100 kilometres from Östersund.
It will be connected to the 130kV E.ON grid and is set to be operational in the first half of 2024.
In line with its develop-to-own model, Neoen owns 100% of Storen Power Reserve and will be the long-term operator of the asset.
The battery will provide Svenska Kraftnät, the Swedish transmission system operator, with ancillary services and Frequency Containment Reserve services.
Storen Power Reserve will help to maintain the balance between production and consumption in real time, efficiently enhancing the power system security.
The battery will reduce grid stabilisation costs while facilitating the integration of renewable energy assets, Neoen said.
In addition to the Storen Power Reserve battery, Neoen’s Swedish assets include the 57MW Storbrännkullen wind farm, under construction, and the 90MW Hultsfred solar park, which will enter construction in the second half of 2023.
Storen Power Reserve is Neoen’s second battery in the Nordics, the first being the 30MW/30MWh Yllikkälä Power Reserve in Finland, in operation since 2020.
Laetitia Prot, Neoen’s Head of Business Development Sweden, said: “We are delighted to see Neoen expanding fast in Sweden, only two years after setting up our team in Stockholm.
“I wish to thank all stakeholders, in particular distribution system operator E.ON, and Ragunda Municipality, for their support, and for playing alongside us an active role in Sweden’s energy transition.”