Without grid-stabilizing technology, Finland will be left behind in the green transition

From the reader. Finland’s electricity system is going through a transition that is progressing faster than we could possibly expect. Wind and solar energy production is growing rapidly, and they are the most cost-effective options for building new energy production. At the same time, however, managing the electrical system becomes more difficult.

There are already nine gigawatts of wind power, and the number is still growing. The electrification of society is a basic condition for the green transition, as the use of electricity increases with, for example, data centers, electric cars, and industrial electric boilers.

This change can be seen directly in the everyday life of the electricity network: production varies from hour to hour and consumption spikes can be huge. However, our electricity network was not originally built to respond to this kind of flexibility.

Fingrid’s investments are not enough

If new forms of production and consumption are connected to the grid, which do not in themselves strengthen the grid, the stability of the electricity system starts to rely too much on public investments. Fingrid’s the projects strengthen the main grid, but they alone are not enough to guarantee the operational reliability of the system in the future.

That’s why we need solutions that, in addition to production, also stabilize the network. Here, grid forming technology plays a decisive role. As more and more electricity is produced by wind and solar power plants, the relative share of traditional generators will decrease in the electricity grids of the future.

Therefore, the converters used in renewable energy power plants must be able to simulate the operation of the generator in order to ensure the stability of the electrical system. Otherwise, support will falter and electricity distribution will become more uncertain. So it is not a fancy additional feature, but a necessary basic function so that the electricity network remains stable in the future as well.

The geographical imbalance is challenging

The geographical imbalance of production and consumption emphasizes this need. The majority of wind electricity is produced in northern Finland, while consumption is concentrated in the south. If bottlenecks occur in the electricity grid, energy cannot reach where it is needed. This can also have an impact on making investment decisions. Energy storage is one of the most cost-effective ways to balance this imbalance.

If new forms of production and consumption are connected to the grid, which do not in themselves strengthen the grid, the stability of the electricity system starts to rely too much on public investments.

Grid forming became a mandatory requirement for battery power plants built in Finland at the beginning of 2025. The company I represent has several projects underway in different parts of the country, and technology is already being used on a large scale internationally. However, without grid forming technology, the electricity grid easily becomes a bottleneck: new production or consumption cannot be safely connected to the system.

Finland now has the opportunity to build an electricity system that can withstand change and attract new investments. If technologies that stabilize the network are not implemented quickly enough, we will face increasing bottlenecks. Without grid stability, the green transition will slow down and the need for imported electricity will increase.

By Editor