Despair in energy companies

Consumers have suffered from high electricity prices since the beginning of the year, but energy companies have struggled with the exact opposite problem in recent years.

Teknikka & Talous magazine in an extensive survey the situation of Finnish energy companies was surveyed.

Is electricity too cheap in Finland from the business perspective of energy companies?

“According to our survey, yes. Most CEOs of companies say that electricity is too cheap,” says the journalist Tuula Laatikainen.

According to the report, the average turnover of energy companies has decreased by more than ten percent in the last couple of years. There are company-specific differences. The results have not yet suffered badly from the situation.

“The biggest question and problem is how to dare to plan new investments and how the investments will turn out. This is of course a big question, because every company should be able to invest for the future.”

The problem boils down to wind power, whose share of electricity production has become relatively large. In their answers, CEOs mention it as one of the biggest reasons. There is also a mismatch in consumption and production.

The solution is seen to be large electricity-using investments in, for example, data centers and industry that consumes a lot of electricity, which would increase demand.

“After all, then the price of electricity would also start to rise a bit.”

A power shortage threatens?

In addition to the price of electricity, power has been talking recently. The answers vary, but some energy companies see the risk of a power shortage in Finland for a longer period of time.

“The general big picture is that the energy companies are really worried about this situation. It’s a bit scattered so that some people see that a power shortage threatens mainly for a few weeks a year in cold times like this, but others clearly see a longer-term power shortage problem.”

Energy companies have a wide range of solutions to the issue of power. The list includes modern options, such as motor power plants, all kinds of energy storage and batteries. New nuclear power and small nuclear power plants are also presented in the answers.

The new thing has become the fact that the brakes would be pressed on the shutdown of CHP plants, says Laatikainen.

“And yes, there was even one person who mentioned that the use of coal should be allowed. Then, a bit paradoxically, some also suggest increasing wind power, although in a way wind power is behind this problem.”