Statkraft inks its largest BESS PPA deal in the Nordics

Statkraft has signed a seven-year PPA with Swedish developer OX2 covering two large-scale BESS projects in Finland, both currently under construction.

The deal covers two facilities with 110 MW/220 MWh and 125 MW/250 MWh capacity respectively. The batteries will be located alongside wind projects, one at OX2’s Kannisto plant in Halsua and the other at Korkeamaa wind farm, in Finland’s Soini municipality. Both batteries will be optimized by Statkraft over the deal’s seven-year term, which is expected to commence in 2028.

Statkraft said the new 235 MW battery storage agreement was its largest BESS PPA in the Nordics to date, and highlights the state-owned Norwegian energy company’s commitment to improving system flexibility, stability and renewable integration in the region.

The deal is the latest in a line of major BESS PPAs from Statkraft. Recent offtake agreements include a PPA signed with Statera Energy for its 300 MW/600 MWh Thurrock Storage BESS in Essex, England, and Fidra Energy’s under construction 1.4 GW Thorpe Marsh BESS, also in the United Kingdom.

Hallvard Granheim, executive vice president for markets at Statkraft, said the long-term optimization agreement with OX2 provides the predictable revenues that can be an “important enabler” for developers seeking finance. The PPA deal contains an “innovative revenue floor structure” intended to help secure financing for the projects, according to Statkraft.

Mehmet Energin, chief commercial officer at OX2 said Statkraft’s market presence and optimization expertise will provide the developer a solid foundation for maximizing the value of its BESS assets.

“By combining our project delivery and asset management capabilities with Statkraft’s market leadership, we are strengthening the competitiveness of our portfolio and accelerating the growth of our flexible, future proof energy solutions in the Nordics,” Energin said.