A review of the current status of energy storage in Finland and future development prospects

The share of renewable energy sources is growing rapidly in Finland. The growth has been boosted by wind power during the last decade. Based on the present construction and planning activities, the electricity supplied by wind power could during 2035–2040 even be equivalent to 200 % of the domestic electricity demand in 2022. This development forebodes a significant transition in the Finnish energy system, requiring new flexibility mechanisms to cope with this large share of generation from variable renewable energy sources. Energy storage is one solution that can provide this flexibility and is therefore expected to grow. This study reviews the status and prospects for energy storage activities in Finland. The adequacy of the reserve market products and balancing capacity in the Finnish energy system are also studied and discussed. The review shows that in recent years, there has been a notable increase in the deployment of energy storage solutions. There has especially been growth in utility-scale battery energy storage systems, with about 0.2 GWh currently in operation and a further 0.4 GWh planned. A similar growth in thermal energy storage systems, with about 39 GWh in operation and a further 176 GWh under planning, has been reported. This rapid development has been facilitated by the provision of investment aid and the implementation of legislation that removes barriers, such as double taxation of stored electricity.