Nala Renewables begins construction of a massive energy storage facility in Finland. Vuolijoki project to reach 250 MWh capacity

International investment platform Nala Renewables has issued a notice to proceed for the Nala Vuolijoki project, a utility-scale battery energy storage system with a power output of 125 MW and a capacity of 250 MWh. It is currently one of the largest battery storage facilities entering the construction phase in Finland.

Rapid expansion in the Nordic market

The Vuolijoki project was acquired at the ready-to-build stage from Swiss developer Fu-Gen in February 2026. The investment is part of the rapid expansion of Nala Renewables’ Finnish portfolio:

• Kauhava project (50 MW / 100 MWh) – successfully connected to the grid and commissioned.
• Kärppiö project (100 MW / 200 MWh) – acquired from Fu-Gen in September 2026.
• Nala’s total portfolio in Finland – has now reached 275 MW / 550 MWh, positioning the investor among the leading players in the Nordic flexibility market.

Technology suppliers, main contractor and financing

The construction work and component supply will be handled by established industry partners. Finnish engineering company Despro has been appointed as the EPCM contract manager, while Destia Oy is responsible for the supporting infrastructure. Battery technology and power conversion systems will be supplied by Sungrow.

Dutch bank Rabobank has provided long-term debt financing for the Nala Vuolijoki project. This demonstrates the investment’s strong bankability and the solid institutional relationships associated with Nala Renewables’ shareholder, IFM Investors.

Changes in Finland’s grid reserve market

The development of such a large facility coincides with ongoing changes in Finland’s balancing services market. Finnish transmission system operator Fingrid has recorded a decline in prices in annual auctions for frequency containment reserves, shifting a greater share of procurement volumes to hourly markets. Against this backdrop, the trading strategy and revenue mix of the Vuolijoki energy storage facility will be closely monitored by the energy sector across Central and Eastern Europe (CEE) and Scandinavia.

It is worth noting that Finland’s BESS market is attracting significant international investment. Meanwhile, Swedish company Ingrid Capacity has secured EUR 65 million from Mirova to develop energy storage projects in Sweden and in Pedersöre, Finland (45 MW / 90 MWh).