Warning: Strong upward pressure on the price of electricity

Energy companies in Finnish cities warn that geothermal systems, as they become more common, pose risks to the sufficiency of Finland’s electricity output during severe frost periods.

During the peak hours of the winter days, the decisive factor is how much electricity and power is available at the same time.

“The need for power is especially accentuated during periods of frost, when a large part of the energy use is aimed at heating. The price of electricity acts as a warning signal that the available power is tight”, Energiakaupunkit ry executive director Eero Haapalehto says in the announcement.

In Finland, a significant part of the heating energy is currently produced by district heating. It lightens the load on the electrical system. Renewable bioenergy cogeneration plants produce electricity for the grid.

“If property-specific geothermal solutions become more common than they are now, they will put a heavy load on the electricity system precisely during peak consumption hours. At the same time, the role of cogeneration will shrink, meaning peak electricity production capacity will be removed from the market. As a whole, the market price of electricity may rise significantly. At the same time, the risk of power shortages will increase,” says Haapalehto.

He says that electrification and a clean transition must be carried forward system-oriented. Power, timing and the coordination of heat and electricity production must be raised alongside the examination of energy quantities.

“Discussions should first ask how much energy and power is available when consumption is at its highest.”

The energy companies demand that in the regulation of energy efficiency, solutions that steer away from district heating without considering system effects should be abandoned.

Energiakaupunkit ry has 13 member companies. The companies are responsible for district heating networks and electricity distribution in the areas of Vantaa, Tampere, Turku, Lahti, Jyväskylä, Oulu, Kuopio, Seinäjoki, Vaasa, Pori, Kouvola and Lappeenranta.