Spotlight on Finland: Energy storage sector set to double

Finland holds an enviable position in terms of the production of cleaner energy, with a diverse mix of nuclear, wind, hydro, and renewable fuels, alongside fossil fuel sources such as coal and gas. The country is a net importer of electricity from Sweden, a connection that became more critical once Russia ceased supplying electricity to Finland in 2022, after Finland joined NATO.

The market for battery energy storage systems (BESS) is ripe for two main reasons: providing grid flexibility and stability in a rapidly evolving energy landscape, and for value capture as electricity markets become more volatile as well. Coal, for example, will be banned from energy production from 2029, but already, energy companies Helen and Vantaan Energia have closed their last remaining coal-fired power plant units.

Yet disruption is occurring. Data from Finnish Energy indicates that hours with zero or negative electricity prices reached 900 hours in 2024, a significant rise from 536 hours in 2023. This volatility underscores the necessity for flexible demand-side assets like BESS, which can quickly adapt to fluctuating supply conditions. A primary catalyst for the growth in BESS are these zero and negative prices.

BESS now, BESS later

In terms of BESS capacity, approximately 250 MW of BESS capacity is operational across Finland as of mid-2025. The country added the 5 MW/10 MWh Rando Grid facility in January 2025 (in record time) and the 30 MW/41 MWh Ainola BESS was completed in June 2025.

The Ainola BESS was developed by Ilmatar, with Nuveen Infrastructure buying 90% of the project to support the build. Co-located with the Piiparinmäki wind farm in the North Ostrobothnia region, Ainola went live in June 2025, with aims of acting in the wholesale electricity market via the day-ahead and intraday markets.

Also supporting BESS is regulatory framework adapting to facilitate deployment. On March 20, 2025, the Energy Authority of Finland confirmed Fingrid’s new Grid Code Specifications for Grid Energy Storage Systems (SJV2024). These specifications became effective immediately and outline technical and operational requirements for BESS installations, including provisions for frequency containment, voltage regulation, and reactive power support.

Looking ahead, the BESS pipeline is robust. Scottish-based consultants LCP Delta expects around 300 MW of BESS capacity to be connected to the Finnish grid over the next two years, with projects totaling 245 MW/370 MWh in various stages of development. These projects are anticipated to come online by 2025 or 2026, meaning that within the next two years, Finland’s operational BESS capacity is projected to more than double.

This includes the 70 MW/140 MWh Nivala project, marking Swedish developer Ingrid Capacity’s entry into the Finnish market, and the 55 MW/110 MWh Uusnivala system by NTR Clean Power Fund. Two 50 MW one-hour duration projects are also advancing, one by Renewable Power Capital and another by A Energi, ECO STOR, Farvatn, and Amp Tank.

Update Friday, August 8: Winda Energy announced it is building a 30 MW / 60 MWh BESS in Finland, near Rautavaara. European supplier GAZ Energy will supply the BESS, Ingeteam the inverters, and Czech renewables and flexibility services firm Second Foundation will provide route-to-market and optimization.