UK-based infrastructure investor Foresight Group has acquired the 100MW/400MWh Nivala BESS via its Foresight Energy Infrastructure Partners II (FEIP II) fund, in the North Ostrobothnia region of Finland.
Announced 15 October, Foresight now has a 100% interest in the Nivala BESS, which was originally developed by Fotowatio Renewable Ventures (FRV), the renewable independent power producer (IPP) and developer headquartered in Spain and owned by Saudi Arabia’s Abdul Latif Jameel Energy.
The project is fully permitted, ready-to-build, and the largest BESS project in Finland. The investment is Foresight’s second in Finland, following the acquisition of Puskakorpi, an 88MW BESS project in 2021 via FEIP I.
The company stated that with a 4-hour duration, the BESS is designed to participate in Finland’s wholesale, intraday and ancillary services markets, a significant revenue driver for Finnish BESS, and help support the integration of renewable generation and the decarbonisation of the Finnish power system.
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Foresight will continue to develop the project which is expected to commence commercial operations in the second half of 2028.
Earlier this year, Foresight invested in German BESS developer Mirai Power, via FEIP II. Mirai originated a 12.5GW pipeline of projects in Germany, primarily pursuing transmission-connected assets. With Foresight’s backing, Mirai stated it would expand beyond Germany.
Finland is experiencing a boom in BESS development. As is the rest of the Nordic region, which shares a single ancillary services market, but with prices set locally in regional zones across the countries.
As Energy-Storage.news recently highlighted alongside project announcements from the region, Finland’s BESS revenues have dropped steeply over the roughly three years since development began in the country.
Clean Horizon’s Storage Index shows annualised gross revenue peaked in September 2023, when a 1-hour asset earned around €645,000/MW/year (US$724,451/MW/year), a 2-hour asset around €810,000/MW/year, and a 4-hour asset around €845,000/MW/year.
By August 2026, those figures had collapsed to €50,000/MW/year for a 1-hour asset, €78,000/MW/year for a 2-hour asset, and €111,000/MW/year for a 4-hour asset.
The decline reflects a market becoming increasingly saturated. Grid operator FinGrid expects the roughly 1GW of confirmed BESS deployments in place at the start of the year to be joined soon by a further 2.6GW currently under construction, pushing ancillary services revenues lower.
Still, Clean Horizon points out that participation in aFRR and mFRR EAM markets has held up, and rising intraday trading activity could offer new revenue streams going forward.
