Wärtsilä & RCT launch Valo battery storage venture

Wärtsilä and RCT Solutions have launched Valo, a battery energy storage system integrator for the Australian market. The joint venture enters Australia with 7.5 GWh across 10 utility-scale projects.

Valo will target a battery storage market that is expanding as coal-fired power stations retire and the grid absorbs more renewable generation. Australian projects are increasing in size and becoming more complex to deliver as grid and market requirements evolve.

Owned equally by Wärtsilä and RCT Solutions, Valo will operate across Australia, Europe, Asia and the Americas. It combines Wärtsilä's energy storage technology and software with RCT Solutions' engineering, manufacturing and supply chain expertise.

The venture launches with a global base of more than 20 GWh across more than 130 utility-scale energy storage projects. In Australia, its initial footprint spans 10 projects totalling more than 7.5 GWh, giving it an established reference base in a market of growing importance for battery developers and investors.

Industry forecasts cited by the companies value Australia's battery energy storage system market at USD $2.24 billion by 2030. That growth reflects a broader shift in the country's power system, with storage being added to balance intermittent renewable generation and provide support services as older coal units leave the grid.

Market shift

Battery energy storage has become central to Australia's electricity transition, particularly in states with large volumes of wind and solar generation. Utility-scale projects are being developed not only to store electricity for later use, but also to respond quickly to fluctuations in supply and demand and to meet technical requirements set by grid operators and market bodies.

That has raised the bar for project delivery. Beyond procuring battery units, developers must manage system design, software controls, engineering integration and long-term servicing, often across several suppliers. Valo is positioning itself around that integration challenge rather than battery hardware alone.

Chief Technology Officer Dr. Luke Witmer said customers were looking for a simpler delivery model.

"Customers should not have to manage a collection of technologies and vendors and hope everything works together as intended," Witmer said.

"The performance of an energy storage project in Australia depends on how effectively every element of the system is managed together. Integration defines outcomes. Valo is built to take accountability for those outcomes by bringing hardware, software, engineering and long-term services together under one roof," he said.

Combined approach

Wärtsilä already has a substantial presence in the global storage integration market through its energy storage business, which supplies storage technology, control systems, optimisation software and maintenance services. Germany-based RCT Solutions brings engineering experience and a background in establishing large-scale battery and solar manufacturing operations.

That combination is expected to help manage both project execution and supply chain demands at a time when developers are under pressure to control costs and delivery schedules. Access to engineering and manufacturing expertise has become more important as projects grow in scale and buyers seek confidence that systems can operate as designed over long project lifetimes.

For existing customers, the launch is intended to provide continuity as well as a broader operating structure. Existing teams and technologies will remain in place, supported by the new venture's wider engineering and supply chain base.

Chief Executive Officer Professor Dr. Peter Fath outlined the company's view of the Australian market.

"Energy storage has a defining role in building a more reliable and resilient energy future for Australia," Fath said.

"Valo has the experience, technology and people to deliver reliable performance at scale from day one. But our ambition goes further. We will raise the standard for how energy storage systems are designed, delivered and supported throughout their lifetime in the country," he said.

The launch adds another specialist provider to a market drawing increasing attention from infrastructure investors, utilities and renewable developers. As more projects move from planning into construction, competition is likely to focus not just on battery supply, but on which firms can deliver integrated systems that meet Australia's demanding technical and commercial conditions.