In Conversation: Wärtsilä’s strategy of concentration

Go big or go home might be the new motto in the battery energy storage industry, but some players are taking a more thoughtful approach. pv magazine ESS News caught up with Wärtsilä Energy Storage & Optimisation (ES&O) at last week’s Smarter E in Munich to discuss its business and technology strategies.
Quantum 2 battery energy storage
Wärtsilä launched Quantum2 in March 2024. | Image: Wärtsilä

While many players in the battery energy storage space endeavor to spread out across the globe, Finnish BESS integrator Wärtsilä ES&O is looking to take a more measured approach and focus on a limited number of markets within the footprint of their existing installed base to better cater to market-specific demands.

With over 12.5 GWh of contracted systems, including 8.5 GWh already in operation, the company is looking to further establish its footprint in the US, Canada, Chile, the UK, the Netherlands, Belgium, Taiwan, and Australia.

The upcoming energy storage tender in Italy could potentially be undersubscribed.
Andy Tang
VP of energy storage, Wärtsilä ES&O

“We are also looking at Italy and Spain. But the upcoming energy storage tender in Italy could potentially be undersubscribed as the systems will be offered 10-year offtake contracts for 95% of their capacity leaving little room for making revenues elsewhere,” says Andy Tang, VP of energy storage at Wärtsilä ES&O.

Nonetheless, the company is planning to boost its production capacity by 30-40% annually over the next couple of years, up from around 6 GWh at present.

Move to lithium iron phosphate (LFP) battery cells

Like many other system providers, Wärtsilä ES&O has already moved to bigger cells, specifically lithium iron phosphate (LFP) battery cells with 306 Ah capacity. However, to avoid potential logistic issues, its latest product, Quantum2, packs 4 MWh in a 20-foot container.

“Many cranes in ports cannot lift more than 40 tons. Many roads cannot bear that weight either. If you need to account for high expenses in shipping, then all margins are quickly gone, and the cost of ownership is soaring. This is why Wärtsilä ES&O is not going much bigger on energy density at the system level,” Tang says.

Written by

  • Marija has years of experience in a news agency environment and writing for print and online publications. She took over as the editor of pv magazine Australia in 2018 and helped establish its online presence over a two-year period.


Your email address will not be published. Required fields are marked *

Cancel reply
Please enter your comment.
Please enter your name.

This website uses cookies to anonymously count visitor numbers. View our privacy policy.

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.