Neoen (ISIN: FR0011675362, Ticker: NEOEN), one of the world’s leading producers of exclusively renewable energy, has provided full notice to proceed to battery storage expert Nidec, signalling the start of construction of Isbillen Power Reserve. Following the signing of the turnkey EPC contract in December 2023, the works are now officially starting on site. A ceremony to mark the beginning of construction work took place at the French-Swedish Business Forum organized during the state visit of the French President Macron in Stockholm on 31 January 2024.
Isbillen Power Reserve will be the largest battery in the Nordics. The 93.9 MW / 93.9 MWh lithium-ion battery will be located in the county of Västernorrland, approximately 100 km from Östersund and 6 km from Neoen’s other Swedish battery, Storen Power Reserve (52 MW / 52 MWh), the construction of which is nearly completed. It will be connected to the 130 kV E.ON grid. The battery is set to be operational in the first half of 2025. In line with its develop-to-own model, Neoen owns 100% of Isbillen Power Reserve and will be the long-term operator of the asset.
The battery will provide Svenska Kraftnät, the Swedish transmission system operator, with Frequency Containment Reserve services to help maintain the real-time balance between production and consumption, efficiently enhancing power system security. The battery will also reduce grid stabilization costs while facilitating the integration of renewable energy assets.
The construction of Isbillen Power Reserve favours European industry, with more than half of the value of the project being of European origin: the battery containers will be manufactured and assembled in Nidec’s factory in France. The inverters will be produced in Italy. Civil and electrical works will be carried out by a Swedish company. Finally, project management and engineering will be carried out in Sweden and France.
This new asset reflects Neoen’s ambition to become a leading player in Sweden. In addition to this 93.9 MW / 93.9 MWh Isbillen Power Reserve battery, Neoen’s Swedish assets include the 57 MW Storbrännkullen wind farm, the 52 MW / 52 MWh[1] Storen Power Reserve (SPR) battery and the 100 MWp Hultsfred solar park, all three assets currently also under construction. Based in Stockholm since 2020, Neoen’s Swedish team has a healthy projects pipeline across the country, including more than 400 MW storage projects.
This is fully in line with Neoen’s strategy to step up its investment in storage, as announced in 2023. Isbillen Power Reserve, the construction of which closely follows that of Yllikkälä Power Reserve 2 in Finland (56.4 MW / 112.9 MWh), is Neoen’s fourth battery in the Nordics, with Yllikkälä Power Reserve 1 (30 MW / 30 MWh) in Finland, in operation since 2020, and Storen Power Reserve in Sweden. With close to 1,6 GW / 3.1 GWh of batteries in operation or under construction, Neoen is recognised as a leading player in storage. The company owns and operates two of the world’s largest batteries: the 300 MW / 450 MWh Victorian Big Battery, and the 150 MW / 193.5 MWh Hornsdale Power Reserve, both in Australia.
Laetitia Prot, Managing Director of Neoen Sweden, said: “We are delighted to be launching the construction of another record-breaking battery project in Sweden. I would like to thank in particular the distribution system operator E.ON and local stakeholders for their active support. With now over 300 MW of assets in operation or under construction in the country, including 146 MW of batteries, we are among the most dynamic players in renewable energy in Sweden.”
Martin Höhler, CEO of E.ON Energidistribution, added: “This battery project will be an important contribution to stabilize the Swedish grid, and complement the deployment of intermittent renewable energies in the country. Interest in connecting this type of facility to the grid is growing all the time, which is both good news for the climate and for the expansion of Swedish electricity production.”
Xavier Barbaro, Neoen’s Chairman and Chief Executive Officer, concluded: “I congratulate our team for this second large battery in Sweden where Neoen is providing tangible solutions to speed up the energy transition. Batteries unlock the full potential of renewables by facilitating the integration of solar and wind power. This is precisely where Neoen’s expertise adds value. And this is just the beginning: Neoen is committed to becoming a leading player in Sweden.”
