Flower buys 40 MW Swedish battery storage site for $3 million

Swedish battery storage trading and optimization company Flower is rapidly growing its project fleet, now acquiring one of the nation’s largest sites. 

The project is a ready-to-build 40 MW/80 MWh battery energy storage system (BESS) site developed by Nasdaq Stockholm-listed renewables developer Arise. It is located within the 277 MW Kölvallen wind farm in the municipality of Ljusdal and will connect to the same station. The grid connection is expected to be completed during the first half of 2025.

The transaction covers all the shares in Pajkölen BESS AB, which owns the project rights. The purchase price will amount to a maximum of approximately SEK 30 million ($2.96 million), Arise said.

Approximately SEK 15 million will be received at closing and the remaining part at completion of the grid connection. Closing is conditional upon certain approvals from authorities and is expected to occur during the fourth quarter of 2024.

In addition, the transaction includes a potential earn-out payment of approximately SEK 15 million, which will be realized at certain prices for ancillary services during the first three years after commissioning.

“We are very happy to be able to divest our first battery project, thereby proving the inherent values in our project portfolio. We have an increasing number of battery projects in several of our markets which have the advantage that they are quick to realize. One should remember that Pajkölen until recently was an early-stage project where we successfully accelerated it to this transaction,” said Per-Erik Eriksson, CEO of Arise.

For Flower, this is an important move that brings its Swedish BESS fleet to 270 MW and “solidifies its position as the country’s market leader in battery optimization,” the company said.

“Acquisitions like these used to be unprecedented in the Swedish market. Now they occur with increasing frequency, which says something about the fantastic development in the Swedish battery energy storage industry today,” says John Diklev, founder and CEO of Flower. “With this breakthrough asset in place, Flower will further contribute to a balanced energy system by stabilizing the grid and reducing volatility, while strengthening our position at the forefront of the energy transition.”

Headquartered in Stockholm, Flower was founded in 2020 and has raised EUR 90 million ($100 million) to date. In 2023, the company recorded revenue of SEK 100 million, a tenfold increase year-on-year.

In April, Flower announced it had acquired Sweden’s largest battery park, the 42.5 MW Bredhälla project. In July, it commissined three battery projects (Bredhälla, Kungälv, and Hanhals) with a total power output of 70 MW to create the largest battery portfolio in Sweden.