Estonia's Raudsepa Battery Project, Backed by Taaleri and KJK Capital, Targets Nordic-Baltic Scale Record

Taaleri Energia and KJK Capital are moving forward with what they expect to become the largest battery energy storage project across the Nordic and Baltic region, with construction of the 192 MW / 420 MWh Raudsepa facility in Estonia set to begin this September.

Who Is Building What, and Where

The Raudsepa battery energy storage system will be located roughly 50 kilometres south of Tartu in Estonia. Ownership of the facility is split between the Taaleri SolarWind III Fund, a co-investor alongside that fund, and KJK Fund III, which is managed by Helsinki and Luxembourg-based firm KJK Capital. The investment represents the SolarWind III Fund's first battery energy storage commitment in Estonia.

The deal was announced on 23 September 2026. Construction is being handled on a turnkey basis by Estonian contractor Smartecon, with work scheduled to begin in September 2026. The project is expected to reach full operational status by November 2027.

Developers, Equipment Suppliers, and Operational Model

Evecon, described as a leading renewable energy developer in the Baltics, developed the project in partnership with Corsica Sole, a French independent power producer. The battery storage technology will come from LG Energy Solution, while Power Electronics, identified in the announcement as a European manufacturer, will supply the inverters.

Once the facility is running, it will operate under a multi-market optimisation strategy. Revenue will be generated through electricity arbitrage as well as participation in ancillary services markets.

What Is Driving the Investment Case

Taaleri Energia's Investment Director for Energy Storage, Ville Rimali, pointed directly to Estonian market conditions as the foundation for the investment. "With high power price volatility and the phase-out of oil-fired generation, Estonia represents a compelling battery storage investment opportunity," Rimali said, adding that Raudsepa marks the SolarWind III Fund's first BESS investment in the country.

João Neto, also an Investment Director at Taaleri Energia, framed the deal within the firm's existing regional footprint. "This investment is Taaleri Energia's fifth in the Baltic countries. We are very pleased with our portfolio in the Baltics and proud to be part of the energy transition journey in the region," Neto said.

From the KJK Capital side, Investment Director Markus Mustakallio emphasised the project's anticipated scale. "Raudsepa, when operational, will be the largest in the entire Nordic and Baltic region. Baltic markets have long been the focus of KJK Capital, and we are pleased to expand into the energy sector as well," Mustakallio said.

The SolarWind III Fund in Detail

The SolarWind III Fund is the sixth renewable energy fund launched by Taaleri Energia. It pursues a value-add investment strategy focused on utility-scale onshore wind, solar, and battery energy storage projects, taking assets through the construction and operational phases before exiting.

Target markets include the Nordics, the Baltics, Poland, Southeast Europe and Spain. Total commitments secured by the fund and its associated co-investment vehicles stand at USD 717 million, of which USD 84 million are co-investment commitments. Investment commitments made to date by the SolarWind III Fund itself total USD 483 million.

The fund's investor base spans Erste Group Bank AG, the European Bank for Reconstruction and Development, the European Investment Fund, Ilmarinen Mutual Pension Insurance Company, KBC Verzekeringen in partnership with the European Investment Fund, SmartCap, Varma Mutual Pension Insurance Company, VBV Pensionskasse, and a range of other European institutional investors.

Finnish pension funds, foundations, endowments, family offices and individual investors also participate through a fund managed by Aktia Bank. The SolarWind III Fund carries Article 9 classification under the Sustainable Finance Disclosure Regulation and receives support from the European Union under the InvestEU Fund.

The SmartCap Green Fund component is financed by the European Union through the NextGenerationEU Recovery and Resilience Facility.

The Firms Behind the Deal

Taaleri Energia positions itself as a renewable energy fund manager with one of the largest dedicated renewables investment teams in Europe. The firm develops, constructs, operates and exits onshore wind, solar and battery energy storage assets, and currently manages USD 1.59 billion in assets under management.

It is part of Taaleri Group, which manages USD 3.07 billion in total assets and employs approximately 140 people. Taaleri Plc is listed on Nasdaq Helsinki. KJK Capital is an independent, partner-owned asset manager founded in 2010 with a focus on private equity across the Baltic and Balkan markets, including Estonia, Latvia, Lithuania, Slovenia, Croatia, Serbia, Bulgaria and Romania.

The firm operates eight offices across the region and holds combined assets under management of USD 569 million. KJK Capital Luxembourg holds a Luxembourg Alternative Investment Fund Manager licence regulated by the Luxembourg Commission de Surveillance du Secteur Financier, while KJK Capital Oy is regulated by the Finnish Financial Supervisory Authority.