Vattenfall, which is planning a billion-dollar investment: In Finland, it has been made incredibly difficult “for someone to want to bring money into the country by trucking”

The electricity production of up to two medium-sized nuclear power plants, almost 150 wind turbines, electricity for approximately 350,000 detached houses each year and seven million euros in real estate tax per year for the municipality of Korsnäs.

The numbers are startling. They are The waterfall about the planned large offshore wind power project located on the coast of Vaasa, which is waiting for the actual investment decision in a few years.

If Vattenfall were to decide on the matter now, the outcome would very likely be negative. An investment of several billion euros would not be made.

“It would be very difficult to make a decision in the light of current information,” says Vattenfall’s Finland CEO Iiro Rinta-Jouppi.

“Amazing”

According to Rinta-Joup, one of the reasons for the hesitation is the considerable bureaucracy that has already been experienced and is ahead.

Vattenfall has been running the Korsnäs offshore wind project for four years and is now in the environmental impact assessment phase, and the project is perhaps only halfway through the journey.

“It’s amazing how difficult it has been made in Finland for someone to want to bring money into the country by trucking,” says Rinta-Jouppi.

According to its invoices, Vattenfall is in official contact with a dozen ministries and dozens of different authorities during the project. Permits and statements are sought from them.

Everyone has their own requirements for processes. Rinta-Jouppi describes the situation as a “squirrel wheel”.

“Dozens of different actors, whose task seems to be more to create doubt and slow down than to promote investment.”

He reminds that the competitive situation is a reality in Europe, even with regard to offshore wind investments.

For example, Great Britain, Germany and the Netherlands have begun to cooperate by committing to carry out wind power investments in the North Sea that are approximately 50 times larger than the Korsnäs project, i.e. one hundred gigawatts.

According to Rinta-Joup, the permit processes in these countries are handled more on a one-stop-shop basis than dozens of operators.

“The targeted amount of additional construction of offshore wind power is already so significant that the investment money will easily go there. If this happens, Finland risks being left on the beach playing the game,” says Rinta-Jouppi.

This should be the price of electricity

Another reason for hesitation is the demand for electricity. More of it is needed in order to bring the price down to a level where the investment can be justified.

According to Rinta-Joup, the price does not need to rise to the central European level, but the current prices, which are even on the negative side, do not make the investment equation healthy.

“If the consumer price were five to ten cents per kilowatt hour, it would be possible to get started,” he estimates.

Last year, the average price of electricity was four cents. Finland had the cheapest electricity in Europe.

The other side of the matter, however, is that the prospect of emission-free and reasonably priced electricity is apt to bring the new demand for electricity that Vattenfall is longing for, i.e. industrial investments in Finland.

According to Rinta-Joup, the realization of offshore wind power investment intentions, the development of pumping power, the maintenance of hydropower and consumption flexibility are in theory an alternative to a new nuclear power plant, which, at least according to Fortum, cannot be built without government support.

According to the website of the Finnish renewables association, several offshore wind power projects are under development in Finland along the west coast of Finland. None are under construction yet.

According to Rinta-Joup, Vattenfall is interested in offshore wind power because of its good efficiency.

As much as 90 percent of the operating time of offshore wind power can be used for electricity production, while the efficiency of onshore wind power is at best around 50 percent. With nuclear power, the efficiency is even higher than with offshore wind power.

The units built at sea are also large enough and the wind conditions are more stable than on land. The downside is the expensive electricity transmission costs.

Structural arrangements possible

According to Kauppalehti’s report wind power companies are suffering. Their profitability is on the wane.

In 2024, wind power companies made a net loss of no less than 243.6 million euros with a turnover of 543.6 million euros.

In the light of such figures, it is very possible that corporate reorganizations will take place in the sector and operators will drop out.

“Sure, structural arrangements are one way to move forward, but we are focusing on offshore wind power. We believe that economies of scale can be obtained there, which is difficult to obtain on land,” says Rinta-Jouppi.

After Easter, Vattenfall will announce more detailed employment impact assessments of its Korsnäs project. Rinta-Jouppi estimates that the investment decision will be mature in 2030–2032.

It would therefore take ten years for the planning and approval of the project, and a maximum of four years for the actual implementation.

“If even that approval could take the construction of what it is, then it would already be at a reasonable level,” says Rinta-Jouppi.