Merus Power Secures Major Arctic Energy Storage Agreement with Neve Oy
Merus Power Oyj has entered into a significant agreement with Neve Oy for the delivery of a large-scale battery energy storage system valued at approximately 13 million euros, marking an important milestone in the deployment of resilient energy infrastructure in northern Europe. The project centers on a 30 MW / 80 MWh battery energy storage facility engineered specifically for operation in extremely cold Arctic environments, with installation scheduled for completion in Rovaniemi by the end of 2026. In addition to supplying the system, the agreement includes comprehensive long-term operations and maintenance services designed to ensure optimal performance, safety, and reliability throughout the lifecycle of the installation. This collaboration reflects a shared commitment between the two Finnish organizations to strengthen regional energy resilience, improve grid stability, and support the broader transition toward sustainable and flexible electricity systems capable of functioning under some of the harshest climatic conditions on Earth.
Engineering Energy Storage for Extreme Arctic Conditions
The battery energy storage facility has been purpose-built to withstand the severe environmental stresses characteristic of Arctic regions, including temperatures that can fall to as low as –50 degrees Celsius, persistent ice accumulation, and heavy snowfall that can disrupt conventional electrical infrastructure. Designing energy systems for such environments requires specialized thermal management, robust enclosure structures, and advanced control technologies capable of maintaining safe and stable performance despite extreme external conditions. Merus Power’s solution incorporates grid-forming technology, a sophisticated capability that allows the storage system to actively support grid frequency and provide synthetic inertia, thereby strengthening the stability and resilience of the electricity network. This functionality is particularly valuable in regions with growing shares of renewable energy generation, where maintaining consistent grid performance can be challenging due to variability in wind and solar production. The company previously demonstrated this expertise by delivering the first grid-forming battery energy storage installations in the Nordic countries to Valkeakoski and Lappeenranta, establishing a proven foundation for the new Arctic deployment.
Full-Scope Delivery and Advanced Finnish Technology Integration
Under the terms of the agreement, Merus Power assumes full responsibility for the manufacturing, installation, commissioning, and testing of the battery energy storage system, ensuring seamless integration into Neve Oy’s critical electricity infrastructure. The system is built upon proprietary technology developed in Finland, combining advanced hardware engineering with the company’s internally developed software platform that governs monitoring, control, and operational optimization of the storage asset. This software-centric architecture enables real-time responsiveness to grid conditions, efficient energy dispatch, and secure remote management, all of which are essential for infrastructure operating in geographically remote and climatically demanding regions. Emphasis on cybersecurity, reliability, and operational continuity ensures the system can maintain functionality even during exceptional disturbances or crisis scenarios, reinforcing the strategic importance of domestic technological expertise in safeguarding essential energy services.
Supporting Grid Flexibility and Multi-Market Participation
Once operational, the Rovaniemi energy storage facility will enable participation across multiple electricity market mechanisms, including frequency regulation, reserve services, and energy balancing, thereby enhancing the flexibility and responsiveness of the regional power system. Battery storage plays a critical role in modern electricity networks by absorbing excess renewable generation, delivering power during peak demand, and stabilizing voltage and frequency fluctuations that could otherwise threaten grid reliability. In northern regions where weather variability and long transmission distances present additional operational challenges, such flexibility becomes even more valuable. The project, therefore, represents not only an infrastructure upgrade but also a strategic investment in long-term energy security, ensuring that communities in Lapland benefit from reliable, efficient, and sustainable electricity services despite environmental extremes.
Neve Oy’s Role in Northern Energy and Infrastructure Services
Neve Oy, a diversified multi-sector utility group headquartered in Lapland and owned by the City of Rovaniemi, is responsible for a wide range of essential infrastructure and energy services across the region. These include electricity transmission, electricity and district heating production, district heating distribution networks, water supply systems, fiber optic connectivity, and additional technical services required to support modern communities in northern climates. Operating in such demanding conditions requires continuous innovation and resilience planning, making the integration of advanced battery storage a natural extension of Neve Oy’s long-term strategy. By enabling improved grid flexibility and operational reliability, the new facility will strengthen the company’s ability to deliver uninterrupted services while also advancing sustainability objectives aligned with Finland’s broader energy transition goals.
Leadership Perspectives on Arctic Energy Innovation
Executives from both organizations have emphasized the strategic importance of the project in addressing the unique technical and environmental challenges associated with Arctic energy systems. Kristian Gullsten, Chief Executive Officer of Neve Oy, highlighted that Arctic conditions impose exceptional performance requirements on electrical infrastructure and noted that Merus Power’s tailored solution directly supports the company’s ambition to develop dependable and sustainable energy services suited to Lapland’s demanding environment. Kari Tuomala, Chief Executive Officer of Merus Power, underscored that the company’s energy storage technologies are specifically engineered for challenging grid environments where reliability, availability, and performance are critical success factors. He further emphasized the flexibility of Merus Power’s modular architecture, which allows solutions to be customized to meet individual customer needs while contributing to broader improvements in energy system resilience and adaptability.
Strengthening Merus Power’s Position in Nordic and Global Markets
The agreement with Neve Oy reinforces Merus Power’s standing as a provider of advanced energy storage solutions capable of operating under the most demanding environmental and technical conditions. Demonstrating reliable performance in Arctic applications not only supports regional infrastructure development but also enhances the company’s credibility in international markets where extreme climates, remote operations, or unstable grid conditions necessitate highly resilient energy technologies. As global demand for battery storage continues to accelerate alongside renewable energy expansion, companies capable of delivering proven, high-performance systems in challenging environments are likely to play an increasingly prominent role in the evolving energy landscape. This project, therefore, represents both a commercial achievement and a strategic reference point for future deployments across the Nordic region and beyond.
Merus Power’s Mission in the Sustainable Energy Transition
Merus Power is a Finnish technology company dedicated to accelerating the transition toward sustainable energy through the design and production of innovative battery storage systems, power quality solutions, and related services tailored to the needs of renewable energy integration and industrial electrification. Its scalable technologies enable higher penetration of renewable generation within electricity grids while simultaneously improving overall energy efficiency across society. By focusing on reliability, modularity, and intelligent software control, the company aims to address some of the most pressing technical barriers associated with decarbonization and grid modernization. Financially, Merus Power reported net sales of 54.6 million euros in 2025, reflecting continued growth in demand for advanced energy infrastructure solutions. The company’s shares are traded on the Nasdaq First North Growth Market Finland under the symbol MERUS, positioning it within the Nordic innovation ecosystem as a publicly listed contributor to the global clean energy transition.
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