Taaleri Energia advances in the Baltic market with an investment in Raudsepa, a battery energy storage system 192 MW and 420 MWh which will take place in Estonia.
The project will be located about 50 kilometers south of Tartu, construction is scheduled to begin in September 2026, and the BESS system is expected to be fully operational by November 2027.
The storage system will have a capacity of 420 MWh
The investment will be made through Taaleri Energia’s SolarWind III fund, ownership of the project will be shared between this fund, one of its co-investors, and KJK Fund III, managed by KJK Capital.
Raudsepa will have a power of 192 MW and a storage capacity of 420 MWh this will allow for the storage of electricity and a more flexible response to the needs of an electrical system with an increasing share of renewable energy.
The project was developed by Evecon together with the French independent producer Corsica Sole, while the Estonian company Smartecon will be in charge of the construction and installation of the system through a turnkey contract.
Regarding the equipment, the batteries will be supplied by LG Energy Solution, while the inverters will be manufactured in Europe by Power Electronics.
Raudsepa will operate in several electricity markets.
Once connected to the grid, Raudsepa will use a multi-market optimization strategy, enabling it to generate revenue both through electricity arbitrage and through its participation in ancillary services markets.
Arbitrage involves charging batteries when market conditions are more favorable and then discharging the stored energy when it is more valuable.
In turn, auxiliary services allow this type of facility to participate in various functions necessary to maintain the balance and stability of the electrical system.
Ville Rimali, director of energy storage investments at Taaleri Energia, noted that Raudsepa will be the first BESS project of SolarWind III en Estonia.
The company believes that the volatility of electricity prices and the gradual withdrawal of oil-based generation are creating favorable conditions for new investments in battery storage systems.
Taaleri expands its investments in the Baltic countries
Raudsepa also represents Taaleri Energia fifth investment in the Baltic countries, reinforcing the company’s presence in a region where energy storage is beginning to gain ground alongside the solar and wind power generation.
KJK Capital also participates in the project through KJK Fund III, the asset manager has maintained investment activity in the Baltic markets for years and with this operation expands its exposure to the energy sector.
According to the companies involved, when Raudsepa becomes operational it is expected to become the largest BESS system in the Nordic and Baltic region.
SolarWind III focuses on storage and renewable energy
SolarWind III is Taaleri Energia sixth renewable energy fund, its strategy includes investments in onshore wind farms, solar power plants, and battery energy storage systems. Its target markets include the Nordic and Baltic countries, Poland, Southeast Europe, and Spain.
The fund, together with its associated co-investment vehicles, has accumulated commitments for 630 million euros of which 74 million correspond to co-investment commitments. To date, SolarWind III has made investment commitments totaling 425 million euros.
With Raudsepa, battery storage becomes part of the SolarWind III expansion in Estonia, as the project moves towards the start of its construction and its planned entry into operation in 2027.
Source: STT INFO
Photo: Shutterstock
