Merus Power and CATL scale Nordic storage

Merus Power and CATL have signed a strategic cooperation agreement covering approximately 3GWh of battery energy storage system deliveries in northern Europe.

The agreement extends an existing relationship between the companies, which has already supported around 500MWh of delivered storage systems using CATL battery technology. Under the expanded cooperation, CATL will supply battery technology, while Merus Power will provide power electronics, grid inverter technology, cyber-secure control and protection systems, and Finnish-made system integration.

Although the companies have not disclosed financial terms or a precise delivery schedule, the structure of the agreement shows how European storage procurement is changing. Battery cells and modules remain central, but system value increasingly rests on power conversion, grid-code compliance, protection architecture, cybersecurity, and remote operation.

Merus Power’s storage platform is built around modular systems, power conversion equipment, energy management software, and grid-support functionality. The company positions its systems for both grid-following and grid-forming applications, with fast response, black start capability, and operation in cold climate conditions forming part of the technical offer.

Those characteristics are particularly relevant across the Nordic region, where batteries must operate across variable renewable output, industrial loads, local grid constraints, and severe seasonal conditions. Thermal management, auxiliary power use, enclosure design, safety systems, and service access become more than specification details when equipment is exposed to low temperatures and remote operating environments.

Commercial conditions are also developing quickly. Nord Pool’s move to add a benchmark for European BESS revenues reflects a market in which storage investors need clearer data on trading performance, price spreads, and revenue capture. Larger delivery agreements will be judged not only by installed capacity, but also by the operating assumptions that sit behind each project.

Grid-forming capability is becoming one of the more important technical dividing lines. As synchronous generation declines and inverter-based resources increase, power systems need assets that can support voltage, frequency, and stability without relying entirely on rotating machines. Batteries with advanced inverter controls can provide part of that support, provided system design, protection settings, software, and grid-code approvals are aligned.

The Merus Power-CATL agreement also points to a more regionalised storage supply chain. Global battery manufacturers bring scale, cell technology, and manufacturing depth, while local integrators bring knowledge of grid standards, project delivery, electrical installation, protection, commissioning, and service support. That combination is becoming more attractive as European storage portfolios move from single projects to repeat deployment programmes.

Cybersecurity is likely to remain a prominent requirement. Grid-connected batteries are digitally controlled assets that interact with markets, aggregators, distribution networks, and system operators. Secure communications, software updates, remote access controls, and protection against unauthorised operation are now part of the engineering envelope for large BESS assets.

The practical test will come as framework capacity becomes energised capacity. Northern Europe has strong drivers for storage deployment, from renewable integration to industrial demand management, but projects still need grid connections, planning approvals, financing, equipment slots, and commissioning capacity. A 3GWh cooperation agreement gives Merus Power and CATL scale; the next stage is delivery against grid and market requirements across multiple jurisdictions.

Further information on Merus Power’s energy storage systems is available from Merus Power.