Kauhava, Finland – Nala Renewables has officially commenced construction of its first battery energy storage system (BESS) project in Finland, marking a significant step in the company’s Nordic market expansion. The 50MW/100MWh storage project, located in Kauhava, Finland, is being delivered by Sungrow and KSBR, with long-term financing provided by Société Générale.
Project Configuration and Technical Highlights
According to the project specifications, Sungrow will supply twenty-two 5MWh units of its PowerTitan 2.0 BESS. PowerTitan 2.0 is Sungrow’s latest generation liquid-cooled energy storage product, with each 20-foot container integrating 5,015 kWh capacity and up to 2.5 MW power conversion system, achieving a round-trip efficiency of 89.5%.
The system employs a fully liquid-cooled solution that provides rapid heat dissipation for both battery packs and power conversion system units, making it particularly suitable for Finland’s harsh winter climate. Liquid cooling technology extends system lifespan and improves operational reliability compared to traditional air-cooled systems.
Supporting Trafigura’s European Energy Trading Business
Once operational at the end of 2026, the facility will support Trafigura’s European energy trading business, providing flexible capacity to strengthen Finland’s grid. Nala Renewables is a joint venture between Trafigura and funds managed by IFM Investors.
Nala Renewables Chief Executive Mike O’Neill said: “We are delighted to be breaking ground on Nala’s first project in Finland, which we see as a strategically important market for BESS in Europe. We are especially pleased to involve Trafigura’s energy trading business in the project, supporting a more resilient and flexible grid in Finland.”
He added that the project “is using market leading technology to accelerate the transition to clean energy in Finland – contributing to reserve markets and featuring grid-forming capabilities that enhance overall network stability.”
Nala’s Strategic Expansion in Finland
The Kauhava project is part of Nala Renewables’ broader investment strategy in Finland. In January 2025, Nala acquired its first 50MW BESS project from Swiss developer Fu-Gen AG, located in the Southern Ostrobothnia region of Finland, with construction starting in Q2 2025.
In October 2025, Nala further acquired a ready-to-build BESS portfolio of over 250MW from Fu-Gen, distributed across four strategic sites, with each project expected to commence construction in 2026. These transactions bring Nala’s total BESS portfolio in Finland to over 300MW.
The company’s European BESS portfolio also includes projects in Belgium, Poland and Romania, demonstrating Nala’s ambitions in both the Nordic markets and energy storage sector.
Growth Opportunities in Finland’s Storage Market
Finland’s energy storage market is expanding rapidly, driven primarily by renewable energy growth and grid stability requirements. Finland has set one of the world’s most aggressive climate targets, with a legal obligation to reach carbon neutrality by 2035. Renewable energy sources account for over 50% of electricity production, with several renewable projects being planned or developed.
Finland’s transmission system operator Fingrid plans to boost its reserve market capacity acquisition from 800 MW to 2 GW by 2030 to tackle supply gaps resulting from the transition to a more intermittent power mix. Battery energy storage systems, with their fast response capabilities, have become a critical technology for maintaining grid frequency stability.
Finland’s day-ahead market exhibits high price volatility by European standards, providing attractive revenue sources for battery energy storage systems. Since Finland disconnected from the Russian electricity grid in 2022, the challenges in balancing the grid have intensified, making efficiently managed storage systems crucial for making the most of the country’s abundant wind resources.
According to the Confederation of Finnish Industries, Finland expects to reach 338 MW of new industrial-scale battery storage capacity by the end of 2025, up from roughly 200 MW currently.
Partner Expertise
Sungrow: Sungrow Europe ESS Director James Li said: “We are truly delighted by the trust that Nala Renewables has placed in Sungrow for this landmark project in Finland. This collaboration reflects our shared commitment to advancing energy storage innovation in Europe.”
Sungrow has already deployed multiple projects in Finland. In March 2025, the company announced its partnership with Renewable Power Capital to supply PowerTitan 2.0 systems for the Kalanti 50MW/100MWh project in Uusikaupunki, southwestern Finland, marking the first deployment of this technology in the country. Additionally, Sungrow deployed a 60MWh energy storage system in Simo, approximately 100 kilometers south of the Arctic Circle.
KSBR: KSBR Energy and Civil Construction Director Janne Kananen said: “We are proud to support Nala Renewables in expanding their operations to Finland and appreciate the confidence they have shown in KSBR by selecting us to deliver their first BESS project in the country.”
KSBR (Keski-Suomen Betonirakenne Oy) is a leading renewable energy construction company in Finland. As the country’s leading wind energy builder, KSBR has nearly 20 years of experience in renewable energy projects. The company offers a full range of construction services for the energy sector, including electrical, concrete, infrastructure and earthworks.
Société Générale: As one of the world’s leading project finance banks, Société Générale has extensive experience in renewable energy and energy storage project financing. The bank served as Mandated Lead Arranger and Hedge Provider for Japan’s first BESS project under the country’s long-term capacity payment regime, and supported a USD 1.2 billion financing for wind, solar, and battery storage projects in India. In 2023, Société Générale was awarded “ESG Project Finance House of the Year for Asia Pacific” and “Europe Project Finance House of the Year.”
Nordic Energy Storage Market Outlook
The launch of the Kauhava project comes at a time of rapid development in the Nordic energy storage market. French renewable energy company Neoen has completed a 30MW/30MWh storage facility in Yllikkälä, Finland, and is constructing a second 56.4MW/112.9MWh project in the same area, which will become the largest battery energy storage system in the Nordics.
In March 2025, investment company Locus Energy and Ingrid Capacity began construction on a 70MW/140MWh storage project in Nivala, Finland, expected to become operational in the second half of 2026.
These projects collectively indicate that the Nordic market is becoming a significant region for large-scale energy storage deployment, with storage systems playing an increasingly critical role in supporting renewable energy integration and maintaining grid stability.
