This has already been expected. In a couple of weeks, the new electricity transmission line between Finland and Sweden-the Aurora line-will be physically linked to one another in the Ylitornio, Sweden.
This is undoubtedly the most important new border transfer connection between Finland and Sweden for this decade.
The power line, which will finally cost well over € 300 million, will be completed next fall and will increase the power transmission capacity from Finland to Sweden about 900 Megawat and from Sweden to about 800 Megawat. In practice, Finland receives additional power from Sweden with almost one Olkiluoto 1 nuclear power plant.
You can afford to afford northern Sweden
The importance of the matter should not be underestimated. Northern Sweden, the Swedish SE1 area, has thousands of megawatts of water and wind power production capacity. Last year, the area produced 25 terawatt -hours of electricity, or more than 30 percent of Finland’s need. And there are resources in the area for even larger production.
Currently, the electricity transmission capacity between Finland and Sweden is approximately 2,500 megawatts, but the Aurora line, which will be completed at the end of the year, will increase capacity to 3,300 megawatts.
This significantly improves the operation of the Nordic electricity market and brings electricity prices in Finland and Sweden, and in particular the electricity prices of northern Sweden and Finland closer to each other. The change will particularly benefit Finnish consumers.
In the SE1 area, the average price of the stock exchange electricity was 2.5 cents last year, compared with 4.56 cents per kilowatt hour in Finland. The average price of this year has been less than 1.7 cents in northern Sweden in northern Sweden and 5.1 cents per kilowatt hour in Finland.
The fee for this development goes to the western neighbor.
Thus, there is more cheap electrical energy in Finland, especially in Sweden by hydropower. In this way, there will be significantly more electricity than now, which will also increase the reliability of the Finnish electrical system.
Finland’s price venosity can calm down
The greater supply of water electricity may also curb the enormous volatility of Finland’s electricity price, meaning that water electricity can better respond to ever -changing wind conditions.
The fee for this development goes to the western neighbor, as increased demand automatically increases the prices of the SE1 area-of course moderately. Northern Sweden’s consumption in relation to production is modest, which is a battery giant Northvolt Bankruptcy further emphasizes.
The moderate price change also took place in Finland as Finnish and Estonian transmission connections improved. The Baltic countries benefited from the cheap electricity of the north.
Due to the bottlenecks of electricity transmission in Finland, the price level rose, with Finland more than the same price area as the Baltic Sweden as Northern Sweden. The Aurora line brings this change.
The author is Kauppalehti’s editorial journalist.