Iberdrola can shake up the Finnish electricity market – Now came a bold vision for the Caruna store

Spanish Iberdrola belongs to the giants of the world’s energy sector. In terms of turnover (45.7 billion euros) it is almost ten times and in terms of market value (144 billion) almost eight times as big as Fortum.

In their strategy, both companies rely on emission-free electricity production, such as nuclear power, hydropower and wind power.

One thing separates the companies from each other. While Fortum has sold its electricity networks, Iberdrola has acquired them. It tells that it owns almost 1.4 million kilometers of electricity network worldwide.

Most of Iberdrola’s investments go to its main markets of Spain, Great Britain, the United States and Brazil.

Last week, Iberdrola said it would buy a Finnish electricity grid company From Caruna majority with two billion.

It caused a necessary – albeit very one-sided – principled discussion in Finland about the transfer of the electricity network from a foreign capital investor to a foreign industrial operator.

Political decision-makers have entertained the hope that Caruna’s electricity networks could be acquired under Finnish ownership by using, for example, pension funds for the operation.

The proposals can be considered to be part of summer politics. There is no realism in the proposals, and not necessarily much sense.

First, the authorities regulate the pricing of electricity transmission. Political control of pension companies’ investments by purchasing billions would in turn open a dangerous gate for continuous political demands about the use of pension money for various purposes.

Quite different and a lot a more positive perspective was brought up by the CEO of Suomen Sähkönhörði, which represents large industrial companies Pasi Kuokkanen (KL 24.7.).

He welcomed Iberdrola to Finland. The electricity market hasn’t been there since the 1990s The waterfall seen since landing, a change as big as what the arrival of Iberdrola can mean in terms of competition in the industry.

The idea is based on the fact that Iberdrola will not come to Finland just to own the network company Caruna, but would be interested over time – like Fortum – in serving industrial companies or data centers. After all, these need the clean electricity available in Finland for their operations.

With the help of Caruna, Iberdrola can reach Finland. It may be interested, for example, in onshore and offshore wind power investments, the potential of which is huge here.

This point of view turns the discussion about Iberdrola into a completely different one: What if the arrival of a large energy company increases competition and is apt to improve Finland’s attractiveness in the eyes of large electricity users?

CEO of Iberdrola Ignacio Galan praised Finland’s regulatory environment as predictable and growth prospects in, for example, renewable energy as good.

Without being naive, you could also accept the compliments as they are.