Finland’s Grid Gets a Boost: New Energy Storage Project Paves Way for Renewable Future

Mäntyharju, Finland – A new 30 MW battery energy storage system (BESS) is set to bolster Finland’s power grid, marking a significant step towards integrating more renewable energy sources and enhancing grid stability. Developed by Finnish technology firm Merus Power and funded by investment company Exilion, the project in Mäntyharju, Eastern Finland, utilizes cutting-edge ‘grid-forming’ technology, positioning Finland at the forefront of energy innovation in the Nordic region.

This project isn’t just about adding storage capacity; it’s about fundamentally changing how energy is delivered. Traditional energy storage systems simply respond to the grid; this one creates the grid, actively forming voltage and frequency to ensure a stable and reliable power supply – a crucial element as the nation transitions to a cleaner energy future.

Meeting the Challenge of Renewable Integration

Finland, like many European nations, is heavily investing in renewable energy sources, particularly wind and solar. While the environmental benefits are clear, integrating these intermittent resources presents a significant challenge for grid operators. Unlike traditional power plants that provide consistent baseload power, wind and solar generation fluctuate depending on weather conditions. This variability can lead to grid instability, frequency fluctuations, and even blackouts.

“The increasing share of renewables requires a more flexible and responsive grid,” explains a source close to Fingrid, Finland’s transmission system operator. “Traditional grid stabilization methods are becoming less effective, and new technologies like grid-forming inverters are essential for maintaining a reliable power supply.”

Pioneering Grid-Forming Technology

The key to this project’s success lies in its use of ‘grid-forming’ inverters (GFIs). Unlike conventional inverters that follow the grid’s voltage and frequency, GFIs actively create their own, essentially forming the grid itself. This allows them to provide crucial support during periods of high renewable generation or unexpected grid disturbances.

“GFIs offer numerous benefits, including enhanced grid stability, improved power quality, and the ability to restart the grid after a blackout,” explains a technical analyst specializing in grid modernization. “They're a game-changer for systems with a high penetration of inverter-based resources.”

Merus Power has become a leader in GFI technology, recently deploying the Nordic region’s first grid-forming BESS to Swiss energy company Alpiq in Valkeakoski, Finland. The Exilion project in Mäntyharju builds on this success, utilizing the same advanced technology to provide crucial grid services. This system is specifically designed to meet the stringent grid-forming requirements set by Fingrid, pushing the boundaries of what’s possible in grid stabilization.

Exilion’s Investment in a Sustainable Future

Exilion, a Finnish investment company specializing in renewable energy and real estate, is driving the project with a long-term vision for a sustainable energy system. The company already boasts a substantial portfolio of wind farms – generating approximately 1 TWh of clean electricity annually – and is actively investing in solar energy and energy storage solutions.

“We see energy storage as a critical enabler of the energy transition,” says a representative from Exilion. “This project in Mäntyharju is a key part of our strategy to build a more resilient and sustainable energy system for Finland.”

Exilion is also developing one of Finland’s largest solar power plants in Simo, demonstrating a commitment to diversifying its renewable energy portfolio. The company's strategic investments are poised to significantly contribute to Finland’s ambitious climate goals.

Regional Impact and Future Outlook

The Mäntyharju project is not just a national initiative; it has significant regional implications. By enhancing grid stability in Eastern Finland, it paves the way for increased investment in renewable energy projects in the area. This, in turn, will create new jobs and stimulate economic growth.

Furthermore, the project serves as a valuable testbed for future grid modernization efforts. The data and insights gained from operating the grid-forming BESS will inform the development of new grid stabilization strategies and technologies.

While Merus Power currently holds a strong position in the Finnish market, competition is growing. Global players like Siemens Energy and Wärtsilä are also developing and deploying grid-forming solutions, suggesting a dynamic and evolving landscape. However, Merus Power’s early leadership and deep understanding of the Finnish grid give it a competitive advantage.

“The energy storage market is becoming increasingly competitive,” notes a market analyst. “Companies that can deliver innovative and reliable grid-forming solutions will be well-positioned for success.”

As Finland continues its transition to a cleaner energy future, projects like the one in Mäntyharju will play a vital role in ensuring a stable, resilient, and sustainable power supply. The commitment from both Merus Power and Exilion demonstrates a clear vision for a future powered by renewable energy and underpinned by innovative grid technologies. The advancements showcased here aren’t just benefitting Finland – they’re setting a new standard for grid modernization across the Nordic region and beyond.