Renewable energy company Neoen has given the green light for the commencement of construction on the 54MW Yllikkälä Power Reserve Two battery in Finland, signaling a significant step forward in the country's push towards energy independence and carbon neutrality. Storage specialist Nidec will oversee the entire construction project, providing key components such as battery containers, cells, and inverters.
The lithium-ion two-hour battery, boasting a capacity of 56.4MW/112.9MWh, is anticipated to become the largest in the Nordics, positioned near Lappeenranta city center, approximately 100 meters from Neoen's initial large-scale battery project in Finland, the 30MW/30MWh Yllikkälä Power Reserve. YPR2 is set to be operational in the first half of 2025, connected to Fingrid's Yllikkälä substation via an underground cable.
Following Neoen's develop-to-own model, the company retains full ownership of Yllikkälä Power Reserve Two and will serve as the long-term operator. The battery is designed to participate in Fingrid's reserve markets, offering rapid-response ancillary services to maintain the balance between energy production and consumption. This will contribute to enhancing the power system's frequency and security while facilitating the integration of renewable energy assets.
Yllikkälä Power Reserve Two marks Neoen's third battery project in the Nordics, solidifying the company's position as a global leader in battery ownership and operation. With a battery storage portfolio of 1489MW/3032MWh either in operation or under construction globally, Neoen aims to play a pivotal role in Finland's energy landscape, supporting the country's objective of achieving carbon neutrality by 2035.
Jerri Loikkanen, Neoen's country director for Finland, expressed gratitude to Fingrid and the municipality of Lappeenranta for their ongoing support. Emphasizing Neoen's commitment to contributing to Finland's energy independence, Loikkanen highlighted the company's determination to play a crucial role in the nation's journey toward carbon neutrality.
Fingrid President and CEO Jukka Ruusunen acknowledged the importance of electrification in Finland's climate goals and welcomed the rapid advancements made by pioneers like Neoen. The collaboration is expected to bolster the supply in Fingrid's reserve markets, crucial for real-time balancing of energy production and consumption.
Acting Mayor of Lappeenranta Tuomo Sallinen echoed the significance of Neoen's investment in the region, emphasizing its role in positioning Lappeenranta as a trailblazer in renewable energy, innovative storage solutions, and green electrification business.
Neoen Chairman and CEO Xavier Barbaro emphasized the critical role of storage in the energy transition, highlighting its contribution to accommodating a higher share of renewable energy in the power mix. He affirmed Neoen's commitment to accelerating the deployment of large-scale and long-duration batteries, aligning with global efforts for a cleaner energy future.