Finnish fund manager Taaleri Energia and Baltic private equity firm KJK Capital have invested in a 2.2-hour battery in southern Estonia that one of the backers says will be the largest in the Nordic and Baltic region.
Taaleri Energia’s SolarWind III Fund, a co-investor in the fund, and KJK Fund III jointly own the Raudsepa project, about 50 km south of Tartu. Construction starts this month, and the battery is expected to be fully operational by November 2027, said Taaleri.
Estonian developer Evecon developed the project with French independent power producer Corsica Sole. Estonian contractor Smartecon will build it on a turnkey basis using LG Energy Solution battery equipment and European-made inverters from Power Electronics. The partners did not disclose the investment value or financing terms.
The battery will earn revenue from both electricity arbitrage and ancillary services. Ville Rimali, investment director for energy storage at Taaleri Energia, said high power price volatility and the phase-out of oil-fired generation make Estonia an attractive market for battery storage. It is the fund’s first battery investment in Estonia and Taaleri Energia’s fifth investment in the Baltics.
Markus Mustakallio, investment director at KJK Capital, said Raudsepa will be the largest battery in the Nordic and Baltic region when operational. At 420 MWh, it would exceed each of Evecon and Corsica Sole’s Hertz 1 and Hertz 2 projects, which together form a 200 MW/400 MWh complex. The Zirgu project in Tsirguliina is designed for up to 800 MWh, although its first phase is 100 MW/200 MWh.
The SolarWind III Fund has made investment commitments of €425 million ($483.32 million) to date. The fund and its co-investment vehicles have total commitments of €630 million.
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