Ardian, a world leading private investment house, in partnership with its operating platform eNordic, today announces it has taken Final Investment Decision (FID) to build Mertaniemi battery energy storage project, a 38.5MW one hour utility scale battery energy storage system (BESS) in Finland, to support the Finnish power grid.
The investment, made from the Ardian Clean Energy Evergreen Fund (ACEEF), marks the fund''s first investment in the BESS asset class, which is expected to grow significantly in size from 11GWh of installed capacity in Europe today to 75GWh by 2030 according to Bloomberg New Energy Finance. Ardian assessed the merits of this investment using OPTA, Ardian''s proprietary data analysis platform, which powers revenue and operational strategy across Ardian''s renewable infrastructure portfolio globally.
The project is aligned with the ACEEF strategy in Finland, which aims to acquire and aggregate wind and solar power assets to benefit from economies of scale and to better utilize the grid interconnection points by developing battery storage assets. This follows the acquisition of two wind farms in Finland in 2023, totaling more than 27MW. The strategy is being executed by eNordic, a renewable energy platform developed and wholly owned by Ardian to serve the Nordic region.
Mertaniemi battery energy storage project is a joint venture between ACEEF and Lappeenrannan Energia, a Finnish municipal energy company. It will see the development of a 1-hour 38.5-megawatt energy storage system. The project is due to complete in spring 2025 and is located near the Mertaniemi power plant in Lappeenranta.
In addition to the energy storage system, the project includes the development of facilities to protect the batteries from extreme weather conditions. Once complete, the system will participate in the local grid''s frequency reserve markets and support the balancing of production and consumption in the power grid.
More broadly, Ardian''s investment portfolio in renewable energy in the Nordic countries now aggregates to €1.2 bn. It comprises wind parks totalling over 500 MW, as well as renewable energy company Nevel, which is active in district heating, industrial utilities and biogas across Finland, Sweden and Estonia. Recently Ardian announced acquisition of Verne Global, a company who owns and operates i.a. 3 data centers in Finland; this acquisition is still in the approval process by local authorities.
"The investment in a new battery storage system, which is a first for Ardian''s clean energy evergreen fund, is an essential part of our strategy in Finland. We identified an opportunity to scale Finland''s wind capacity and connect battery storage technology to create a balanced and productive energy system. With our existing strong presence and network in the Nordic countries, and our expertise in financing and operating long-term renewables projects, Ardian is perfectly placed to foster this new market opportunity." Benjamin Kennedy, Managing Director Renewables Infrastructure, Ardian
"Ardian is dedicated to driving forward the energy transition and helping to scale renewable technology to reduce carbon emissions. Renewable energy is now being generated at an unprecedented rate and building power storage solutions is vital for helping balance supply and demand to the grid, for the creation of a stable modern electricity network. This investment is a significant step towards a more sustainable and reliable energy future in Finland." Mathias Burghardt, Executive Vice President and Head of Infrastructure, Ardian
"The Nordic energy market is already ahead of the curve regarding the energy transition, largely due to the volume of emerging technological developments. Mertaniemi battery energy storage project exemplifies eNordic''s position at the forefront of this movement, helping realize the region''s ambition to become a leading player in sustainable energy". Eero Auranne, CEO of eNordic
ACEEF will continue to focus on core renewable assets including solar, wind and hydro, as well as emerging technologies across biogas, biomass, storage and energy efficiency.
Ardian is a pioneer in the energy transition, having started investing in renewable assets in 2007. Across all Infrastructure Funds, the team manages a renewable energy portfolio of more than 8GW of heat and renewable energy capacity in Europe and the Americas, and over $28bn assets under management across the globe.
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The fluctuating nature of renewable energy is one of its main issues. Renewable energy sources like solar and wind power depend on the optimal weather conditions, which means it may not always be available when needed. This may become a problem, especially in regions where heat consumption varies significantly between seasons.
In order to deal with this issue, Vantaa Energy is building a seasonal thermal energy storage facility in Vantaa. The operating principle of the facility called Varanto, meaning ''vault'' or ''reserve'', is to store heat in underground caverns so that it can then be used to heat buildings via a district heating network whenever it is needed.
The seasonal thermal energy storage facility will be built in Vantaa''s bedrock, where a total of three caverns about 20 meters wide, 300 meters long and 40 meters high will be excavated. The bottom of the caverns will be 100 meters below ground level. The capacity of the caverns is huge; their total volume is 1,100,000 cubic meters, including process facilities. The underground caverns will be filled with hot water. Pressure will be created within the space, allowing the water to reach temperatures of up to 140 degrees without the water boiling or evaporating.
The total thermal capacity of the fully charged seasonal thermal energy storage is 90 gigawatt-hours and is equivalent to as much as 8 million euros worth of district heat. This capacity could heat a medium-sized Finnish city or town for as long as a year. Broken down into smaller energy units, this amount of energy is equivalent to 1.3 million electric car batteries.
At its best, the heat-producing system will sometimes be running on electricity, sometimes on other production forms. The Vantaa Energy district heating network acts as the power transmission and is steered by intelligent control, securing affordable and stable prices while eliminating emissions.
The project, valued at around 200 million euros, is financed by Vantaa Energy, but has been awarded a 19-million-euro investment grant from Ministry of Economic Affairs and Employment of Finland. Construction of the storage facility''s entrance is expected to start in summer 2024, and the seasonal thermal energy storage facility could be operational as early as 2028.
Finland has become a leader in innovative energy and storage solutions. The strong focus on research, supportive policy environment, well-functioning collaboration ecosystem and Finnish technological expertise are some of the reasons behind Finland’s success. Finland''s energy innovation and renewable power strengths also have a significant role in reaching the ambitious climate targets.
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