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BESS in the Nordics: Smart Adaptations, Reduced Risks

Battery energy storage systems (BESS) continue to play a vital role in the Nordic energy transition.
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By: Anders Orebrandt , 

Head of Power & Renewable Energy

19/05/2025 · 3 minute read

Battery energy storage systems (BESS) continue to play a vital role in the Nordic energy transition. Based on Marsh's experience in advising BESS owners in the Nordics, cold climate challenges, ensuring safety, and optimizing spacing are key topics that are discussed for BESS development in the region.

Battery Energy Storage Systems are essential for improving grid reliability, particularly as renewable energy sources like solar and wind are often intermittent. BESS stores excess energy generated during favorable conditions and releases it during low generation periods, aiding in grid balancing and supporting renewable integration. This allows BESS to respond swiftly to fluctuations in energy demand, ensuring a reliable supply during peak times while alleviating grid pressure by storing energy during off-peak hours. By enhancing the stability and efficiency of renewable energy, BESS is a vital component in the transition to sustainable energy systems.

However, several fundamental risk parameters specific to BESS projects in the Nordics needs to be addressed by the project owners. These include natural catastrophe (NatCat) risks from extreme weather, such as heavy snowfall, storms, or flooding that can damage installations and allow water to reach batteries, which must remain dry. The cold climate in the Nordics can also reduce battery efficiency, leading to shortened operational life and could also cause thermal runway. Additionally, transport risks and delays can impact project timelines, while safety risks from lithium-ion batteries pose fire and explosion hazards if not managed properly.

Why Build Battery Energy Storage Systems in the Nordic Region?

  • Designed to withstand cold climate: The Nordic region's infrastructure is designed for cold temperatures, helping BESS installations maintain stable internal conditions. Project owners need to include weather protection measures like insulated walls and roofs to minimize heat loss. Additionally, windbreaks and weather-resistant canopies protect BESS installations from snow, rain, and wind, thereby reducing the risk of moisture and ice formation that could affect battery performance.
  • Ensuring High Level of Security: We have seen that projects being built in the Nordics have a high demand for risk management and security for their BESS projects. This includes an advanced battery management system, backup power for safe shutdown, and early involvement of emergency services, which ensures that potential risks are effectively managed in the project
  • Optimizing Spacing: The Nordic landscape offers sufficient space for BESS installations, allowing the minimum spacing between battery containers and transformers to be met. This spacing reduces fire risks, enhances airflow and ventilation, prevents overheating, and simplifies maintenance and repairs.

Next step? BESS will have a large impact on energy systems in the Nordics, helping the move toward carbon neutrality. However, ignoring the specific needs for BESS installations in the region could slow down progress. For more information on how these risks may affect your business, contact your Marsh advisers.

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