Press release: Elinor Batteries to supply batteries for grid-scale energy storage in Southern Norway

October 21, 2025 – Elinor Batteries has been awarded the contract to supply battery solutions for three large-scale battery parks in Southern Norway, boosting energy storage capacity, reducing grid costs, and supporting a faster transition to a low-emission society.

Visualization of the Eiktyr.

Largest battery project in Norway

Elinor Batteries has been awarded the contract to supply battery solutions for three new large-scale battery projects in Southern Norway. Scheduled for completion in 2026, the projects will have a combined storage capacity of nearly 40 MWh, making them among the largest battery projects in Norway to date, with a total investment framework of up to EUR 8 million. Elinor’s deliveries, made in collaboration with their technology partner Morlus, will account for roughly half of the total investment. 

“This is an important milestone for Elinor Batteries. The delivery provides valuable references that strengthen our position in the market and qualify us for several projects we are now preparing for delivery towards the end of 2026 and into 2027,” says Arne Fredrik Lånke, CEO of Elinor Batteries. 

Crucial role in the Norwegian power system

Valinor, the owner of the projects, is entering this market with the conviction that batteries will play a crucial role in the Norwegian power system going forward. Statnett, the national transmission grid operator, is currently spending sharply increasing amounts on system services. This cost has risen significantly over the past two years due to stricter requirements for security of supply, and the cost is ultimately passed on to grid customers. Experience from Sweden shows that batteries have contributed to substantial cost reductions. The increased focus on security of supply in the power system is also a strong argument for expanding large-scale battery capacity. 

There are now growing expectations that the authorities will facilitate predictable framework conditions for batteries in the power system. Both the authorities and Statnett are working on this issue, and just days ago, Statnett announced new measures to make it easier for batteries and other resources to participate in the reserve markets. 

“Batteries will become a crucial part of the Norwegian power system going forward. System costs in Norway have increased sharply in recent years. At the same time, experience from Sweden shows major benefits: Svenska kraftnät was able to reduce its budget for support services by SEK 2 billion in 2024, largely thanks to batteries being allowed to participate in the frequency markets,” says Pål Selboe Valseth, CEO of Valinor. 

From left: Terje Andersen, Chair of Norsk Industriutvikling, Pål Selboe Valseth, Chair of Valinor and Lars Helge Helvig, CEO of Valinor .

Reduce costs in the power grid

Batteries help reduce grid costs for consumers, smooth out power prices, and enable a faster transition to a low-emission society by accelerating electrification across all sectors. 

“Norway has long been a leader in renewable power and hydro based energy storage, but has recently fallen behind in large-scale batteries and other new storage technologies. Now is the time to establish a robust domestic market for energy storage, enabling the industry to grow,” says Lånke. 

The first of the three battery projects will, according to current plans, be built in Drangedal, and will include a collaboration with technology company Cartesian on thermal energy storage. This solution will improve the overall efficiency and available power of the battery park by combining electrical and thermal energy storage. Enova is supporting the project because it demonstrates an innovative and highly promising solution for future battery parks — particularly in challenging climates. 

Awaiting national approval

Elinor is currently in negotiations with leading European partners regarding additional large-scale battery supply contracts. At the same time, the company is awaiting a final decision from the Ministry of Local Government and Regional Development (KDD) regarding zoning in Orkland, where it plans to establish a major battery factory for future production. Planning of the factory site has been underway since 2021, and the associated impact assessments rank among the most comprehensive ever conducted for an area plan in Norway. 

“We are now working with major customers who are also requesting progress in the development of our own factory, and we are only waiting for the final clarification from KDD. At the same time, the grid queue for our factory project has moved quickly — from number 27 to 11 — so we expect to receive power when we need it. Combined with the fact that we are now demonstrating commercial strength through large, profitable market projects, our vision for a manufacturing base in Orkland is stronger than ever,” concludes Lånke.