Statkraft, OX2 in Finland battery deal to iron out wind power volatility

• The agreement covers two battery systems (110 MW and 125 MW) in western Finland, with Statkraft optimizing their use while providing OX2 guaranteed revenue for project financing
• Finland's installed wind capacity nearly tripled from 3,257 MW in 2021 to 9,433 MW in 2025, now accounting for 28% of total power generation
• Hours with negative electricity prices (below 0 euros/MWh) jumped from just 5 hours in 2021 to a peak of 724 hours in 2024, reflecting severe oversupply issues during high wind output periods

Summary

Norwegian state-owned utility Statkraft has signed a seven-year power purchase agreement (PPA) with Sweden's OX2 for two battery energy storage systems (BESS) in Finland, beginning in 2028. The deal involves large-scale battery systems of 110 MW and 125 MW in western Finland, which Statkraft will optimize while providing OX2 with guaranteed revenue to support project financing.

The agreement addresses growing electricity price volatility driven by Finland's rapid wind power expansion. Wind capacity in Finland has nearly tripled from 3,257 MW in 2021 to 9,433 MW in 2025, now accounting for 28% of total power generation. This expansion has created significant supply imbalances, with negative-priced power hours (below €0/MWh) surging from just 5 hours in 2021 to a peak of 724 hours in 2024, before easing to 465 hours in 2025.

The battery systems will help manage intermittent renewable generation by storing energy during high-output periods and discharging when wind subsides, ensuring supply reliability. Finland currently has approximately 1,050 MW of electricity storage capacity, according to grid operator Fingrid, though bottlenecks remain a concern.

The batteries will be co-located with OX2's wind farm projects in western Finland. Statkraft's Hallvard Granheim described the arrangement as "buying access to the battery" to optimize its use. Beyond Finland, OX2 is expanding BESS investments into Australia, Poland, Italy, and Sweden.

This deal highlights the critical role of energy storage infrastructure in stabilizing power markets as renewable energy penetration increases across Europe.