Guest Column by Dan Sandin, NSC
Energy storage is often the key to a reliable and economically viable energy system
The energy market is in the midst of a historic transition. The green transition—the move away from fossil fuels—is progressing at the same time as overall electricity demand is rising sharply. Industry, transport, and heat production are being electrified at an unprecedented pace.
However, this equation does not work without new ways of thinking. Simply adding more renewable generation is not enough; attention must be paid to the entire system, and especially to the infrastructure. It is precisely at this point that an opportunity emerges: well-designed solutions not only support the green transition, but can also become profitable, long-term businesses with genuine societal impact.
The green transition is reshaping the logic of the energy system
The rapid growth of renewable energy, increasing electricity consumption, and the replacement of fossil fuels with electricity are changing the very nature of the energy system. Generation is no longer steady and predictable—variability and volatility have become the new normal.
Companies are also increasingly guided by sustainability and carbon-neutrality requirements. The origin of electricity and heat matters, and energy solutions must stand up to scrutiny not only technically, but also economically
The bottleneck is not energy production, but the grid
Discussions around energy projects often reveal the same issue: there is a strong desire for green electricity, but the functioning of the entire system is not always fully understood. Electricity must be delivered to consumption through the grid, yet the grid cannot be upgraded at the same pace as new generation is being added.
At the same time, renewable generation is inherently intermittent. Demand is growing rapidly, but in many areas the electricity grid has become the primary bottleneck.
In this situation, battery energy storage systems moves to the forefront. Storage is not merely a technical add-on, but a critical part of a functioning energy system: it balances fluctuations between generation and consumption, provides local grid support, and enables renewable energy investments in areas where grid capacity is limited
Battery energy storage provides four essential business benefits
- Flexibility and grid support
- Improved utilization of renewable generation
- Access to revenues from multiple electricity markets
- Enhanced economic viability of energy project
Hybrid solutions require system-level optimization
Today’s energy system increasingly consists of hybrid solutions that combine, for example, wind and solar power, electric boilers, industrial consumption, and battery energy storage. In such systems, optimizing individual components is no longer sufficient.
What is needed is system-level thinking. This is where the role of an operator like NSC becomes critical: taking overall responsibility and guiding the customer by integrating generation, consumption, and storage; optimizing them in real time across multiple electricity markets; and modeling investment payback, risks, and long-term returns. Virtual Power Plant solutions and advanced optimization transform fragmented assets into a single, economically managed system.
In industry, energy management is turning into a competitive advantage
For many industrial companies, energy has traditionally been seen as a cost. That has now changed. Companies are facing increasing requirements related to renewable energy, carbon neutrality, and sustainability across the entire value chain. At the same time, new loads are being introduced, such as electric boilers and electrified transport.
This brings questions of grid connection capacity, the cost of increasing it, and the impact of new loads on the overall system to the forefront. When these factors are analyzed as a whole, it often becomes clear that the cost of a battery energy storage system is only a small part of the total investment—yet its impact on flexibility, optimization, and overall economic performance is significant.
A battery energy storage system is an enabler.
The real challenge in decision-making is not technology, but system-level understanding
The greatest barrier to investments is often not technology, but understanding the whole picture. Decision-making becomes difficult when it is unclear where returns are generated, how an investment supports the existing business, and how different solutions interact with one another.
This is why clear communication, transparent calculations, and realistic scenarios are essential. A long-term perspective matters more than a single electricity price point or short-term market fluctuations.
Battery energy storage systems are also attracting increasing interest from investors. They are seen as a new class of energy assets, offering predictable long-term returns and exposure to the growth and support of the energy transition. Infrastructure funds and long-term investors, such as pension funds, are viewing energy storage in an increasingly strategic light.
NSC provides specialized energy solutions for energy companies, energy-intensive industries, and investors. We offer solutions related to energy storage and optimization, as well as project development, consulting, and trading services.
In addition to daily optimization and trading, we support our customers in investment decision-making. Through simulations and analyses, we help assess profitability, risks, and market opportunities, drawing on our deep expertise in the Nordic electricity markets.
NSC Group has nearly a hundred years of combined experience in the energy sector, and our mission is to enable a cost-efficient green transition.
The author is NSC: Dan Sandin, CEO and Founding Partner.
Energy storage is essential for the future energy system
A renewable energy system cannot function without sufficient energy storage capacity. Both locally and at the national level, battery energy storage systems support infrastructure, increase flexibility, and enable a controlled and reliable progression of the green transition.
Sustainability and profitable business are not in conflict. On the contrary, over the long term they go hand in hand.
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