SENS updates the market – progress in the Swedish project portfolio

Sustainable Energy Solutions Sweden Holding AB (publ) today communicates an updated assessment of the company's project portfolio in Sweden, which includes both energy storage and energy production projects. Several of SENS' projects have taken significant steps forward in development, with the Motala project having achieved ready-to-build status (RTB) while others continue to advance through the permit processes.

"We have systematically worked to bring our projects closer to completion, and we are now seeing clear results. With a project ready for construction to start, we can begin the next phase of development, where we, together with financial partners, take the projects further towards implementation and operation. The fact that we have also created conditions for increased capacity in selected projects strengthens the portfolio's long-term value and development potential," comments Henrik Boman, CEO of SENS.

During the recent period, SENS has continued to drive its Swedish projects forward with a focus on optimizing capacity and adapting them to future energy needs. The portfolio includes both energy storage projects in the form of BESS (battery storage) and energy production in the form of PV (solar power). During the end of 2023 and the beginning of 2024, SENS entered into several lease agreements in Sweden in strategically selected locations, identified as attractive project areas with proximity to available grid connection for the establishment of battery parks. Securing lease agreements is a critical first step in project development and through these agreements, SENS has established a solid foundation for its energy storage and production portfolio. The total capacity now amounts to 820 MW, of which 670 MW relates to BESS projects.

"We have taken significant steps forward in the development of our project portfolio, with several projects advancing through the permitting processes. One of our Swedish projects in Motala has now achieved ready-to-build status (RTB), while the others continue to develop. With the latest adjustments, our portfolio includes a total of 12 projects with a total capacity of 820 MW in Sweden. The most advanced projects in addition to the one in Motala include Enkärret, Öja, Ramshammar and Hallsberg, where we see continued progression and aim to achieve RTB in the second and third quarters of this year," comments Camilla Friman, Chief Energy Market and Optimisations at SENS.

By optimizing capacity and adapting projects to the growing market demand, SENS has strengthened its business opportunities and increased profitability potential. SENS is now conducting several ongoing dialogues with financial partners to secure final financing and enable a quick start of construction with the goal of generating stable revenue streams from the portfolio.

The development process of battery storage projects
The development of a battery storage project takes place in several stages, where each phase is crucial to ensure an efficient and successful establishment. Initially, design and permit processes are carried out, which include technical and economic analyses, design of the project and connection requests to the electricity grid. At this stage, all necessary permits, such as grid connection agreements, environmental permits and regulatory approvals, are also secured in close cooperation with authorities and electricity network operators.

Once the permit and project design are in place, the next phase, construction and installation, begins. During this period, the battery storage facility is constructed, and it is integrated with the electricity grid and, where applicable, with renewable energy sources to optimize storage capacity.

Finally, testing and commissioning are carried out, where the system undergoes extensive testing to ensure reliability and performance. The plant is optimized, and operational staff are trained to enable stable and efficient operations.

Potential value of the Swedish project portfolio
The value of the SENS battery storage portfolio may vary depending on several factors, such as capacity expansion, CAPEX and revenue forecasts. Based on current market assumptions about the frequency market, the total value of the battery portfolio is estimated to be between SEK 150 – 300 million based on an estimated valuation of SEK 190 – 375 thousand/MW. This assessment considers the development phase of the projects and the remaining time until the start of operation.