Finance
Statkraft, OX2 in Finland battery deal to iron out wind power volatility
Published by Global Banking & Finance Review®
Posted on February 25, 2026
2 min readLast updated: February 25, 2026
Tags:infrastructure
Quick Summary
Statkraft signed a seven-year PPA to optimise two OX2 battery storage systems in western Finland from 2028. Co-located with wind farms, the BESS will help reduce price volatility and provide bankable revenues amid rapid wind growth.
Statkraft, OX2 strike Finland battery deal to smooth wind power swings
By Nora Buli
OSLO, Feb 25 (Reuters) - Norwegian state-owned utility Statkraft said on Wednesday it had signed a power purchase agreement (PPA) for two battery energy storage systems (BESS) developed by Sweden's OX2 in Finland, where rapid wind power expansion has increased price volatility.
PPA Details and Market Impact
Large-scale batteries are seen as essential for managing intermittent renewable energy generation such as wind power, helping ensure the reliability of supply by charging when output is high and emptying when the wind subsides.
Scope and Timeline (begins 2028)
Beginning in 2028, the seven-year deal will see Statkraft optimise the use of two large-scale battery systems of 110 megawatts (MW) and 125 MW being built by OX2 in western Finland.
Financing and Revenue Support
The deal also offers OX2 a guaranteed revenue supporting the projects' financing, the companies said.
Executive Quote on Battery Access
Statkraft Optimization Strategy
"What we're doing here, is we're kind of buying access to the battery, and then we optimise the use of the battery," Hallvard Granheim, who heads Statkraft's markets business unit, told Reuters.
Co-located with OX2 Wind Farms
The batteries are being built at the same site as two of OX2's wind farm projects and will share a grid connection point.
Finland Storage Capacity and Grid
Finland currently has around 1,050 MW of electricity storage capacity, grid operator Fingrid said, but cautioned that finding the most suitable connection points was also important to avoid bottlenecks.
Wind Capacity Growth and Share
Installed wind power capacity in Finland has almost tripled to 9,433 megawatts (MW) in 2025 from 3,257 MW in 2021, and last year accounted for 28% of all power generation, according to lobby group Finnish Energy.
Price Volatility and Oversupply
At the same time, The number of hours in a year where power prices have fallen below 0 euros per megawatt hour, representing an oversupply of electricity, have increased from five in 2021 to a peak of 724 hours in 2024, LSEG data showed. For 2025, the number eased to 465 hours.
OX2 Battery Investments Abroad
In addition to Finland, OX2 is also investing in battery systems in Australia, Poland, Italy and Sweden.
(Reporting by Nora BuliEditing by Tomasz Janowski)
Key Takeaways
- •Statkraft signs a seven-year PPA starting in 2028 to optimise two large-scale OX2 battery systems in western Finland.
- •The batteries are 110 MW and 125 MW and are co-located with OX2 wind farms, sharing a grid connection point.
- •The agreement includes a guaranteed revenue component to support project financing while Statkraft handles optimisation and dispatch.
- •BESS will help mitigate wind-driven price volatility and provide ancillary grid services as Finland’s renewables grow.
- •Finland’s storage capacity has surpassed 1 GW, underscoring a broader shift toward flexibility solutions across the Nordics.
Frequently Asked Questions about Statkraft, OX2 in Finland battery deal to iron out wind power volatility
1What is the main topic?
Statkraft and OX2 have agreed a seven-year power purchase agreement for two large battery energy storage systems in western Finland to manage wind-driven price volatility.
2How does the PPA structure work?
Statkraft will optimise battery operations and market participation, while OX2 benefits from a revenue guarantee that supports financing and long-term project bankability.
3Why are batteries needed in Finland?
Rapid wind capacity growth has increased price swings and negative-price hours. Large BESS provide flexibility by charging during surplus wind and discharging when output drops, stabilising the grid and prices.
