Ailanka –
Arctic Energy Storage.

Europe is making remarkable progress in renewable energy. The next major challenge – and an increasingly urgent one, as more wind and solar enter the system each year – is ensuring that clean power is available not only when the wind blows or the sun shines, but whenever industry and society need it most. 

Ailanka – Arctic Energy Storage helps to meet that challenge, now.

Located in northern Finland, Ailanka is a pumped-storage power plant that builds on Kemijoki Ltd's 70 years of hydropower operation in the region.

Kemijoki Ltd holds the water regulation permits for the area and brings a depth of local knowledge – of the waterways, the environment, and demanding arctic conditions – that few other developers can match. At scale, Ailanka will store renewable energy and return it to the electricity system when demand rises, generation falls, or the grid requires balancing. By shifting energy from times of abundance to times of need, Ailanka will help transform variable renewable generation into reliable power. 

This makes Ailanka more than an energy storage project. It is infrastructure for resilience: strengthening security of supply, enabling further renewable development, and supporting a more flexible and stable European electricity system. It also represents sustainable infrastructure for the region: the project will create jobs and economic activity during construction and operation and generate lasting value and prosperity for Northern Finland. 
 
As Europe electrifies, flexibility becomes essential – and the need is immediate. Ailanka – Arctic Energy Storage can help turn renewable potential into reliable power today. Delivering clean power society can trust for generations to come. 

Ailanka – Arctic Energy Storage.
Making renewable power reliable. 

Ailangantunturi pumped storage power plant

  • Technical information

    Technical information

    Plant type: Pump turbine
    Head potential: Approx. 200 metres
    Capacity: 550 megawatts (MW)
    Number of machinery: 3

    The project area is located approximately 22 kilometres south of the centre of Kemijärvi. The transmission line will be located in the municipalities of Kemijärvi and Rovaniemi. The upper reservoir of the pumped storage plant, covering an area of approximately one square kilometre, is planned to be constructed on top of Ailangantunturi. The lower reservoir will be the Kuusilahti bay of Lake Kemijärvi. The tunnel connecting the upper and lower reservoirs will be approximately 4.5 kilometres long and have a diameter of 9 metres.

    The electricity generated by the plant will be connected to Fingrid’s Pirttikoski substation in Autti. The transmission line voltage will be 400 kilovolts.

    Ailangantunturi Pumped-Storage Hydropower Project PCI Number and Description:

    3.10 Hydro pumped electricity storage in Finland [‘Kemijoki PSP’]. ​

  • Environmental Impact Assessment (EIA)

    The Environmental Impact Assessment (EIA) Report for the project was initiated in spring 2024. The report was submitted to the coordinating authority in summer 2025, and a revised version was submitted in April 2026. The coordinating authority issued its Reasoned Conclusion on 8 July 2026.

    The Environmental Impact Assessment of the Ailangantunturi pumped-storage hydropower plant and transmission line project examined the project’s impacts on surface waters; fisheries, fish stocks and aquatic ecosystems; soil, bedrock and groundwater; vegetation, birdlife and habitat types; Natura 2000 sites and protected areas; reindeer husbandry; local traffic; noise and vibration; climate; air quality; community structure and land use; landscape and the cultural environment; as well as people and society.

    The Environmental Impact Assessment documentation is available electronically on the website of the Finnish environmental administration at www.ymparisto.fi/ailangantunturin-pumppuvoimala-YVA.

  • Permitting Phase
    The permitting process for the Ailangantunturi pumped-storage hydropower project commenced in May 2026, when Kemijoki Oy submitted applications for water and environmental permits to the Finnish Supervisory Agency as well as a project permit application for the transmission line to the Energy Authority. During the permitting process, Kemijoki Oy will supplement the permit applications with additional information, including technical plans and details regarding the practical implementation of the construction works.

  • Construction
    According to current information, construction of the Ailangantunturi pumped-storage hydropower plant could begin at the earliest in 2029. The project schedule will depend on several factors, including the progress of the permitting process and technical planning, as well as the timing of the final investment decision.

  • Operational Phase

    According to the current project schedule, the operational phase of the Ailangantunturi pumped-storage hydropower plant is expected to commence in 2033. Once in operation, the plant will provide balancing power to the Finnish electricity system, enable the integration of additional renewable electricity generation, and help stabilise fluctuations in electricity prices.

    Our objective is to ensure that, in addition to Kemijoki Oy’s ownership benefits, the City of Kemijärvi will receive long-term, predictable and sufficient returns from the pumped-storage project through employment opportunities and tax revenue. The investment will create both direct and indirect employment and increase municipal tax income in Kemijärvi. The project will coexist with and support the development of other local industries, such as tourism and recreational activities.

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Page updated on 21 October 2026.