Suomen Voima Launches new pumped storage project in Finland

Suomen Voima has announced details of a new energy storage venture named ‘Noste’ in the Kemijärvi region of Finland. The ambitious project involves the construction of 1-3 small-scale pumped-storage hydropower plants in Northern Finland, aimed at bolstering the country’s green transition and enhancing energy balance. The estimated investment for this venture is set to reach up to €300 million.

The surge in wind and solar power, although pivotal for clean energy, comes with significant production variability. To address this challenge, Suomen Voima’s Noste project will introduce pumped-storage hydropower plants, a proven solution across Europe. While this form of energy production is relatively unfamiliar in Finland, there is a substantial demand for efficient energy storage solutions.

Noste is anticipated to contribute 100-200MWof balancing power, providing a crucial element for Finland’s move towards sustainable energy infrastructure. Each hydropower plant within the project is estimated to cost between €50-100 million, culminating in a total investment of up to €300 million.

The project aims to employ state-of-the-art technology, with a paramount focus on designing pumped storage facilities that minimize their impact on the northern environment and landscape. Suomen Voima said it is committed to reducing any adverse effects on residential and recreational areas.

Beyond its environmental benefits, the Noste project is set to have significant local and regional economic impacts. The investment is expected to spur positive developments in employment, tax revenues, and rental income during both the construction and operational phases. The first hydropower plant is slated to commence operations within the current decade.

Suomen Voima has initiated negotiations with landowners and said it is committed to maintaining an open dialogue with residents, businesses, and other local stakeholders to ensure a seamless collaboration during the project preparation phase.