OX2 has taken the investment decision to begin construction of a battery energy storage facility with a capacity of 50 megawatts and 209 megawatt-hours, to be built adjacent to its Fageråsen wind farm in the municipality of Malung-Sälen.

The move marks a significant step in the Swedish renewable energy developer's strategy to retain ownership of energy assets and expand its presence in hybrid power solutions combining wind generation with storage.

A Second Major Investment in Malung-Sälen

The battery energy storage project follows a major commitment OX2 made earlier this year to the same region. In March, the company announced an investment of approximately 3 billion Swedish kronor in the Fageråsen wind farm, which will become the first wind farm that OX2 will own in Sweden upon its completion.

The new energy storage facility adds a further layer to that investment, with OX2 set to retain ownership of both assets as part of a growing portfolio of renewable energy infrastructure.

The company has described the dual investment as central to its long-term ownership strategy in the area, signaling an intent to move beyond its traditional role as a developer that sells completed projects to investors.

By owning both the generation and storage assets at Fageråsen, OX2 is embedding itself more deeply in the operation of Swedish renewable energy infrastructure.

Combining Wind and Storage for Grid Alignment

According to OX2, the rationale for pairing the battery energy storage system with the wind farm centres on improving the alignment of power production with demand.

Wind generation is intermittent by nature, and the addition of a storage facility allows electricity produced during periods of high generation to be held and dispatched when it is needed on the grid.

Matthias Taft, CEO of OX2 AB, framed the investment in terms of both market positioning and broader energy system resilience. "The energy storage, together with the Fageråsen wind farm, strengthens our presence in the Swedish market and adds to our portfolio with solutions for electrification. The combination of wind and energy storage enables better alignment of production with demand and ensures more efficient use of the electricity generated. In this way, we not only add new renewable capacity but also contribute to a more resilient and future-proof energy system in Sweden," Taft said.

The project reflects a growing trend in the European energy sector toward co-locating storage with generation assets, particularly as grids absorb increasing volumes of variable renewable power. For OX2, the Fageråsen hybrid project represents its stated ambition to be at the forefront of such hybrid solutions in the Swedish market.

Financing Secured Through DNB and UniCredit

OX2 has confirmed that financing for the battery energy storage facility has been secured with two banking partners, DNB and UniCredit. The financing was structured as an extension of the commitments those banks had already made in February 2026 in connection with the Fageråsen wind farm itself, meaning the storage facility was folded into an existing credit framework rather than requiring a standalone financing process.

The arrangement suggests a degree of confidence from OX2's banking partners in the integrated nature of the wind and storage project, with the two components treated as linked infrastructure rather than separate undertakings.

Trina Solar to Supply the Battery Energy Storage System

On the procurement side, OX2 has signed a supply agreement with Trina Solar for the battery energy storage system. Trina Solar, which operates across solar and storage markets, will provide the hardware at the core of the facility.

OX2 described the agreement as a key milestone in the procurement process and said it reflects what the company characterised as a systematic approach to project execution.

The signing of a supply agreement at this stage, ahead of construction beginning, indicates that the project is moving forward with its key commercial arrangements in place.

Construction to Begin This Summer, Commissioning Expected Late 2027

Construction of the battery energy storage facility is scheduled to begin during the summer of 2026. OX2 has indicated that it expects the facility to be commissioned by the end of 2027, giving a construction and commissioning timeline of roughly eighteen months.

The Fageråsen wind farm and its co-located storage system will together form a flagship asset for OX2 in Sweden, representing the company's first domestically owned wind project as well as its first utility-scale battery storage facility in the country. The projects are being developed in Malung-Sälen, a municipality in Dalarna County in central Sweden.

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