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

Core Insights - Statkraft has signed a power purchase agreement (PPA) for two battery energy storage systems (BESS) with OX2 in Finland to manage wind power volatility and ensure supply reliability [1] - The installed wind power capacity in Finland has nearly tripled from 3,257 megawatts (MW) in 2021 to 9,433 MW in 2025, accounting for 28% of total power generation [1] - The number of hours with negative power prices in Finland has surged from five in 2021 to a peak of 724 hours in 2024, indicating increased electricity market volatility [1] Company Developments - Statkraft will optimize the use of two large-scale battery systems of 110 MW and 125 MW being developed by OX2, with the deal starting in 2028 and lasting for seven years [1] - The battery systems will be co-located with OX2's wind farm projects, sharing a grid connection point to enhance efficiency [1] - OX2 is also expanding its battery systems in other countries, including Australia, Poland, Italy, and Sweden, indicating a broader strategy in energy storage solutions [1] Industry Trends - Finland's electricity storage capacity is currently around 1,050 MW, with grid operator Fingrid emphasizing the importance of suitable connection points to prevent bottlenecks [1] - The rapid expansion of wind power in Finland has led to increased price volatility, necessitating the integration of large-scale battery systems to stabilize the grid [1] - The trend of negative power pricing reflects the challenges faced by renewable energy markets, highlighting the need for innovative solutions like battery storage to manage supply and demand effectively [1]