Centrica Energy (A leading energy trading company) and Delta Capacity (battery storage developer)have signed a partial tolling agreement for the Karppio battery energy storage system, a 125 MW / 300 MWh standalone battery project under development in Teuva, Finland, marking another step in the expansion of large-scale battery storage infrastructure across the Nordic region.

Project Background and Structure

The Karppio project was acquired as a ready-to-build asset from Helios Nordic Energy by Delta Capacity and the Strioga Family Foundation, who signed an agreement to take on the project. Delta Capacity is responsible for constructing the facility and will also serve as the long-term asset manager once it becomes operational.

Under the partial tolling agreement, Centrica Energy will optimise and trade the asset across Nordic power markets. The company will apply its 24/7 trading and multi-market optimisation capabilities to generate value across wholesale, balancing and ancillary service markets.

The partial tolling structure is designed to provide the project with secured revenues while also retaining exposure to merchant upside, giving the project a degree of revenue certainty alongside the potential for additional returns from market activity.

Commissioning Timeline and System Role

Commissioning of the Karppio project is planned for the fourth quarter of 2027. Once operational, the facility is expected to contribute to the stability of Finland's power system by supporting frequency regulation and balancing requirements, as well as facilitating the continued integration of renewable generation into the grid.

Finland's power system is described by the parties as among the cleanest in Europe, with rapid growth in renewable generation, particularly wind power, continuing to create demand for flexible assets capable of responding to real-time market and system conditions.

Battery storage is identified as playing an increasingly important role in maintaining system stability, balancing supply and demand, and enabling more efficient use of renewable energy as additional renewable capacity comes online.

Deepening Partnership Between Centrica Energy and Delta Capacity

The Karppio agreement builds on an existing working relationship between Centrica Energy and Delta Capacity. Earlier this year, Delta Capacity's Ånge BESS project in Sweden went live, a 70 MW / 160 MWh facility located in the SE2 bidding zone that is currently described as the largest operating battery energy storage system in the Nordics.

Centrica Energy provides optimisation services for that project as well, meaning the two companies are now partnered across operational assets in Sweden and a development-stage project in Finland.

The Karppio project, at 125 MW and 300 MWh, is significantly larger than Ånge in both power and energy capacity, reflecting the scale at which battery projects are being developed across the region as Nordic power markets continue to evolve.

Voices from the Agreement

Cassim Mangerah, Managing Director of Centrica Energy, described the agreement as an important step in the growth of the company's Nordic flexibility portfolio.

He pointed to Finland's strong renewable generation growth as a driver of demand for flexible assets and said the company looks forward to working alongside Delta Capacity and the wider project team to maximise the value of the asset and support Finland's energy transition.

Patrik Hes, CEO of Delta Capacity, said the agreement reflects the kind of long-term relationships the company seeks as it scales across the Nordics. He cited Centrica Energy's trading expertise and track record in Nordic power markets as reasons for confidence that the partnership will deliver strong outcomes for Karppio from commissioning through its full operating life.

Nordic Battery Storage Market Context

The signing of the Karppio tolling agreement comes as battery energy storage capacity in the Nordic region continues to grow in response to accelerating renewable energy deployment.

Finland, in particular, has seen substantial increases in wind power generation, which increases the need for assets that can provide rapid response to fluctuations in supply and system frequency.

Partial tolling agreements of the kind signed for Karppio represent one of the emerging commercial structures being used to finance and operate large-scale battery projects in liberalised power markets, allowing developers and asset managers to attract trading partners who take on market optimisation responsibilities while the project owner retains a share of the commercial upside.

For Centrica Energy, the arrangement extends its role as an active trader and optimiser of flexibility assets in the Nordics, a market where it now has commitments spanning both Sweden and Finland.

For Delta Capacity, the deal secures a commercial partner for one of its flagship development projects ahead of what is still a multi-year construction and commissioning period.

Powering Smarter Decisions Across Finland's Energy Landscape

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