The European Commission (EC) announced today it has approved EUR 26.3 million (USD 27.8m) in state aid from Finland for a 75-MW/530-MWh underground hydroelectric pump storage facility in the central part of the country.
The aid, which is in the form of an investment grant, will help Suomen Energiavarasto Oy (SEVO), a subsidiary of EPV Energy Oy, build the pumped storage facility at a non-active mine in Pyhasalmi.
The project will participate in the electricity spot and balancing markets and will contribute to the integration of more renewables into the grid. It is expected to come onstream by the end of 2025 and to generate between 60 GWh and 160 GWh of clean power per year.
The Commission said the initiative will increase the share of renewables in Finland in line with the EU's European Green Deal, while helping to reduce dependence on Russian fossil fuels in line with the REPowerEU Plan.