Ingrid Capacity and BW ESS first with large-scale expansion of energy storage in Sweden

Energy storage allows us to store electricity when demand is low, and then reinsert it into the system when demand is high. In order for electrification to take place in a cost-efficient manner, a focus on optimized solutions is required. Energy storage increases the utilization rate of the existing system and reduces cost for new infrastructure. While the electricity system will become more vulnerable as electrification progresses, energy storage therefore contributes to creating an electricity system that is more stable, safer and cheaper. With lead times of 1-2 years from project start to finalization, energy storage is a fast way to strengthen the system.

Historic investment in Sweden
Now Ingrid Capacity and BW ESS, through a recently established JV, are jointly starting the construction of energy storage projects in Eskilstuna, Falkenberg, Gävle, Sala, Varberg and Vimmerby.
The projects have a total capacity of 89 MW, while the network companies in the municipalities concerned have a combined peak output of 316 MW. During cold periods, when electricity demand is at its highest, the projects will thus be able to contribute almost a third of this for one hour during both the morning and evening peak loads. The projects’ total amount of energy is just over 100 MWh. It can be compared with approximately what a medium-sized Swedish municipality with 100,000 inhabitants consumes for one hour during peak demand.

During the coming nine months, Ingrid Capacity and BW ESS further plan to start construction of facilities with a capacity of another 300 MW. This means that before the end of 2024, the partnership will have 400 MW in operation, mainly in Sweden’s electricity areas SE3 and SE4. This corresponds to a little more than a quarter of Sweden’s largest nuclear reactor, Oskarshamn 3, or 100 modern wind turbines when they are producing at full power.

“Ingrid Capacity and BW ESS are now leading the way with a large-scale expansion that adds significant storage capacity to locations across Sweden. It is not a dabbling in the margins, but a historic investment that fundamentally changes the Swedish energy system. And we do it fast. Ingrid Capacity has only existed for barely a year, and the 400 MW is just the beginning,” says Nicklas Bäcker, Chief Strategy Officer of Ingrid Capacity.
“With this expansion, BW ESS not only solidifies its commitment to Swedish energy storage but also takes another pivotal step towards our strategy of becoming a global leader in energy storage systems,” remarks Erik Strømsø, Managing Director of BW ESS.

Energy storage means enormous savings for society
At first, this additional capacity will lower prices on the balance market to levels that prevailed before Sweden’s deregulation in 2018. In the long term, the facilities can also be used to reduce the need for investments in cables and overhead lines, by cutting consumption peaks locally and regionally. In addition, the energy storages create a buffer against extreme prices on the spot market. Ingrid Capacity’s expansion is thereby estimated to mean reduced operating costs of several billion SEK annually for Svenska kraftnät, Sweden’s transmission system operator. At the same time they contribute to lowering the end users’ electricity costs.

“We work extremely fast because the change has to happen extremely fast. Lately, Sweden has had several reminders of the capacity problems – with bottlenecks, power outages and rampant prices. If nothing is done, these problems will become even more evident. A more stable electricity system is crucial for electrification, and electrification is crucial for us to solve the climate challenge and secure competitiveness and welfare. In several countries near Sweden, the expansion of energy storage has therefore already been underway for some time. Ingrid Capacity now ensures that Sweden catches up,” says Karin Lindberg Salevid, Chief Operations Officer of Ingrid Capacity.