On Monday 5 December, the European Commission authorised a €26.3 million Finnish aid measure to support Suomen Energiavarasto Oy (‘SEVO’) in its project to build an underground hydroelectric pump storage facility.
Finland notified of its plans to assist SEVO, a subsidiary of EPV, in converting a non-active mine in Pyhäsalmi into a pumped hydroelectric storage facility.
The facility will participate in the electricity spot markets as well as electricity balancing markets. It will allow electricity generated by expensive gas-fired generation units to be effectively replaced in the electricity grid by clean, low-cost electricity generated when renewable energy conditions are optimal (e.g. during periods with high wind infeed). It will also help to integrate a higher share of renewable electricity generation into the electricity grid.
The aid will support the construction and installation of the storage unit. This hydroelectric pump storage facility will have a capacity of 75 MW and 530 MWh and is expected to generate between 60 and 160 GWh of clean electricity per year. It is expected to start operating by the end of 2025. When completed, the project is expected to avoid the release of 202,000 tonnes of carbon dioxide per year into the atmosphere. (Original version in French by Lionel Changeur)