Nordic Solar’s Hansen Critiques TSOs on Energy Storage Role

The role of transmission system operators (TSOs) in advancing energy storage capabilities has come under scrutiny from industry leaders. Søren Juel Hansen, the energy storage director at Nordic Solar, expressed concern that many TSOs are not adequately addressing the challenges posed by the evolving energy landscape. Hansen’s remarks come as he prepares to participate in the panel discussion titled “AI, Data Centres, and Storage: Meeting the Load Growth Challenge” on Day One of an upcoming industry event.

Challenges in European Energy Storage

Nordic Solar, primarily focused on solar projects in the Nordic markets, has also ventured into the deployment of battery energy storage systems (BESS). The company recently commenced commercial operations of its first storage project in mid-2025. When asked about the primary challenge in the European market, Hansen stated, “Finding the right way to secure flexible, but still reliable, grid import and export access for storage—so we do not have to reinforce grids to add storage flexibility—is still something where we lack a European best practice model.”

According to Hansen, the need for a comprehensive policy addressing flexible and reliable grid access remains a pressing issue for the industry and governments alike. He characterized the current predicament as a significant hurdle that must be overcome to facilitate growth in energy storage solutions.

Hansen did not hold back in his critique of TSOs, asserting, “Most TSOs are sitting on their hands—and need to analyse, demand and incentivise what BESS can do for them and their stakeholders.” His comments underscore a growing impatience within the sector for more proactive engagement from these operators.

Financing and Technological Innovations

At the event, discussions are expected to also cover critical topics such as project financing and the balance between tolling and merchant revenues. Hansen noted that while merchant revenues are currently the most appealing across various markets, tolling presents a viable alternative, particularly in Denmark. “Merchant is currently the most attractive in all our markets but in Denmark, for example, tolling is a profitable alternative,” he explained.

He highlighted that the variability in market conditions leads to differing financial landscapes, stating, “Some markets have tolling agreements that ‘make everything easy’, while in some markets banks have been positive towards hybrid and co-located projects that offer a hedge between revenue on PV capture prices and energy market spreads.” Hansen added that varying levels of maturity among banks influence their willingness to engage with BESS opportunities.

Shifting focus to technological advancements, Hansen identified key trends in BESS, including higher capacities and enhanced fire safety solutions. However, he expressed concerns regarding the control software used in these systems, particularly due to cybersecurity issues with software manufactured in China. “The majority of BESS is manufactured in China, but concerns around cybersecurity make it hard to apply control software originating or controllable from China,” he said.

Hansen observed that while grid-forming BESS is gaining traction globally, it remains largely underutilized in Europe. He cited examples from regions such as China, the Middle East, and Australia as leaders in implementing these advanced technologies. Furthermore, he noted a growing need for long-duration energy storage (LDES) solutions in Europe but acknowledged that “not much traction” has been achieved in this area thus far.

As the energy storage sector continues to evolve, the insights shared by Hansen and other industry leaders during the upcoming panel discussion will be crucial in shaping the future landscape of energy storage and its integration within the broader energy system.