Merus Power Secures €13 Million Arctic Battery Storage Project with Neve Oy
Merus Power Oyj has signed a major agreement valued at approximately €13 million with Neve Oy for the delivery of a large-scale battery energy storage system (BESS) designed to operate in some of the harshest weather conditions in Europe. The 30 MW / 80 MWh facility will be installed in Rovaniemi, Finland, and is scheduled for delivery by the end of 2026. In addition to supplying the system, Merus Power will provide comprehensive operations and maintenance (O&M) services to ensure long-term performance and reliability.
The project represents a significant step forward in strengthening energy resilience in northern Finland, where Arctic weather conditions place extraordinary demands on infrastructure. Designed specifically for extreme environments, the energy storage facility will be capable of operating in temperatures as low as –50°C, while withstanding heavy snowfall, ice accumulation, and other severe winter challenges typical of Lapland.
Engineered for Extreme Arctic Performance
Electrical infrastructure in Arctic regions must meet stringent durability and reliability requirements. The new battery energy storage system has been engineered with these challenges in mind. Its robust design ensures uninterrupted operation even during prolonged periods of extreme cold and severe winter storms.
The system incorporates advanced thermal management solutions and structural reinforcements to protect critical components from freezing temperatures and environmental stress. By maintaining stable performance in such demanding conditions, the facility will play a vital role in supporting energy reliability for the region.
Beyond physical resilience, the storage system integrates grid-forming technology, an advanced capability that enables it to actively support grid stability. Unlike conventional grid-following systems that rely on an existing stable grid signal, grid-forming systems can contribute synthetic inertia and voltage control, helping maintain frequency and overall grid balance. This capability is increasingly important as renewable energy sources, such as wind and solar, replace traditional synchronous generation assets.
Merus Power has already demonstrated leadership in this area. Last year, the company delivered the first grid-forming energy storage facilities in the Nordic countries, located in Valkeakoski and Lappeenranta. The Rovaniemi installation builds on that experience, further strengthening Finland’s transition toward a more flexible and resilient electricity system.
Finnish Technology and Software at the Core
Under the agreement, Merus Power will be responsible for the complete lifecycle delivery of the BESS, including manufacturing, installation, commissioning, and testing. The system is built on advanced energy storage technology developed in Finland, highlighting the country’s growing expertise in smart grid and clean energy innovation.
A key differentiator of the project is Merus Power’s proprietary software platform, which controls and operates the battery system as part of critical electricity infrastructure. Developed in Finland, the software is designed to ensure high operational reliability, rapid responsiveness, and secure performance under both normal and exceptional conditions.
Cybersecurity and system integrity are central to the solution. As energy infrastructure becomes increasingly digitalized, protecting it from cyber threats and operational disruptions is essential. Merus Power’s software architecture includes robust cybersecurity features that safeguard the system’s controllability and data integrity, ensuring reliable performance even during crises or grid disturbances.
The company’s integrated approach—combining hardware engineering, software development, and long-term service support—enables the system to function as a highly adaptable grid asset. This capability will allow Neve Oy to optimize the storage facility across multiple electricity markets while maintaining stability in northern Finland’s challenging environment.
Supporting Energy Flexibility in Lapland
Neve Oy, a multi-sector energy and infrastructure group owned by the City of Rovaniemi, plays a central role in maintaining essential services across the region. The company manages electricity transmission, electricity production, district heating generation and distribution, water supply, fiber optic networks, and other infrastructure services. Operating in the far north requires solutions capable of handling prolonged cold, seasonal variability, and geographically dispersed communities.
The new battery energy storage facility will enhance Neve Oy’s ability to manage grid flexibility and participate in multiple electricity markets. By storing electricity during periods of low demand or high renewable generation and releasing it when demand rises, the system will help balance supply and demand more efficiently.
In addition to energy arbitrage opportunities, the BESS will be capable of delivering ancillary services such as frequency regulation and reserve capacity. These services are critical for maintaining grid reliability, particularly as renewable energy penetration increases and conventional generation declines.
The project also aligns with broader energy transition goals in Finland and across Europe. Energy storage is increasingly recognized as a cornerstone of decarbonized power systems, enabling higher shares of variable renewable energy while maintaining security of supply.
Executive Perspectives
Kristian Gullsten, CEO of Neve Oy, emphasized the strategic importance of the project for the region.
“Arctic conditions place exceptional requirements on electrical systems. Merus Power’s solution responds to these challenges and supports our strategic goal of developing reliable and sustainable energy solutions for the demanding conditions of Lapland,” Gullsten said.
His remarks underscore the importance of investing in infrastructure that not only meets environmental challenges but also supports long-term sustainability and resilience.
Kari Tuomala, CEO of Merus Power, highlighted the company’s focus on delivering tailored, high-performance solutions for demanding grid environments.
“Merus Power’s energy storage solutions have been developed for demanding electricity grid environments where performance, reliability, and high availability are critical factors. We are proud that our modular solutions can be tailored to our customers’ needs. With our technological expertise, we can support Neve Oy in developing the flexibility and reliability of its energy system,” Tuomala commented.
The modular architecture of the system allows scalability and customization, ensuring it meets specific operational requirements while allowing future expansion if needed.
Strengthening Market Position in Advanced Energy Storage
The €13 million agreement reinforces Merus Power’s position as a leading supplier of advanced energy storage solutions for challenging grid conditions. By delivering systems capable of operating reliably in extreme climates, the company differentiates itself in both Nordic and international markets.
As global energy systems continue to evolve, demand for resilient, grid-supportive storage solutions is expected to grow significantly. Regions with harsh climates face additional technical challenges, creating opportunities for companies capable of engineering specialized solutions.
The Rovaniemi project not only strengthens energy security in northern Finland but also serves as a reference case for Arctic-ready battery storage technology. With grid-forming capabilities, robust physical design, advanced software control, and long-term service support, the facility represents a comprehensive approach to modern energy infrastructure.
Upon completion in 2026, the 30 MW / 80 MWh battery energy storage system will stand as one of the most extreme climate-adapted installations in the Nordic region—demonstrating how innovation in energy storage can enable reliable, sustainable power even in the harshest Arctic conditions.
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