Fortum continues its virtual power plant experiment with the launch of the biggest Nordic electricity storage pilot project

Fortum is launching the Nordic countries’ biggest electricity storage pilot

project incorporating Saft’s megawatt-scale Li-ion (lithium-ion) battery energy

storage technology. The objective is to research the suitability of batteries

used for storing electricity to maintain a power balance in the electricity

system. Additionally, the research will explore new opportunities offered by

electricity storage and by the flexible intermediate storage of electricity.

For the project, Saft’s Li-ion containerised battery system with a nominal

output of 2 megawatts (MW) and 1 megawatt hour (MWh) of energy capacity will be

installed at Fortum’s Suomenoja power plant in Finland.



“We are also researching the battery’s optimal use together with the production

and the demand flexibility-based virtual power plant,” says Tatu Kulla, Head of

Operations, Fortum.



The battery project is an extension of Fortum’s pioneering experiment started

in March in which a virtual power plant based on demand flexibility is being

built together with customers. The capacity of this power plant will be offered

to the national grid company Fingrid to maintain a continuous power balance in

the electricity system.



The planning of the Suomenoja battery project has been started, and the aim is

to start the installation work during September 2016. Test use of the

electricity storage is estimated to begin in October. The battery will be

supplied by Saft, the world leader in the design and manufacture of advanced

technology batteries for industrial applications. The project’s investment cost

is about two million euros, for which Fortum will receive a 30 per cent energy

investment subsidy from the Ministry of Employment and the Economy.



Suomenoja is an ideal test environment for the pilot because the power plant

already has in use an industrial-scale heat pump station, which produces about

300,000 MWh, i.e. as much as 15 per cent of Espoo’s district heat demand.

Additionally, one of Finland’s biggest thermal batteries is currently under

construction at the plant; it can store about 800 MWh of thermal energy. This

is equivalent to the heat consumption of about 13,000 single-family homes per

day.



“Increasing the amount of energy produced with solar and wind power will

increase the need for regulating power that balances the electricity network

and for new storage solutions. When the weather is sunny or windy, there is

plenty of energy production, but less demand, so it makes sense to store the

electricity. In this project we are also researching new business models that

can be developed with electricity storage for electricity companies and

customers,” Tatu Kulla says.



"We look forward to working in cooperation with Fortum in this important

project to develop future operational and business models for advanced Li-ion

energy storage systems in electricity grids", says Glen Bowling,

Transportation, Telecom & Grids Senior Vice President Sales at Saft.



Fortum Corporation

Corporate Communications



Further information:

Tomas Qvickström, Head of Business Development, tel. +358 50 453 6298

Tatu Kulla, Head of Operations, tel. +358 400 294 499



Read more about the demand flexibility and its use in maintaining a power

balance:

http://www.fortum.com/en/corporation/research-and-development/virtual%20power%20

plant/pages/default.aspx



Electricity storage

Electricity storage is a part of the future energy system, the so-called solar

economy. With the intermediate storage of electricity, supply and demand can be

better balanced, and the storage can also function as an electricity network

stabiliser in malfunction situations. Other advantages of electricity storage

include its ability to be instantly deployed and its easy adjustability.

Moreover, electricity storage reduces the need for fossil fuel-fired peak load

plants.



Fortum

Fortum’s vision is to be the forerunner in clean energy. We provide our

customers with electricity, heat and cooling as well as other energy solutions

that improve present and future life. Already 64% of our electricity generation

is CO2 free. Our main markets are the Nordic and the Baltic countries, Russia,

Poland and India. In 2015, we employed some 8,000 energy sector professionals,

and our sales were EUR 3.5 billion. Fortum’s share is listed on Nasdaq

Helsinki. www.fortum.com



Saft

Saft (Euronext: Saft) is a world leading designer and manufacturer of advanced

technology batteries for industry. The Group is the world’s leading

manufacturer of nickel batteries and primary lithium batteries for the

industrial infrastructure and processes, transportation, civil and military

electronics’ markets. Saft is the world leader in space and defense batteries

with its Li-ion technologies which are also deployed in the energy storage,

transportation and telecommunication network markets. More than 4,100 employees

in 19 countries, 14 manufacturing sites and an extensive sales network all

contribute to accelerating the Group’s growth for the future. Saft batteries.

Designed for industry. www.saftbatteries.com