The price of electricity will rise, unless the “ideological lock” opens soon

Finland has an opportunity in its hands: cheap electricity, a functioning grid and large energy companies that want to invest in new production.

At the same time, industry that uses electricity, such as data centers and new factories, is attracted to the country. However, this opportunity will not turn into growth by itself, but it requires quick decisions.

Fortum’s managing director Markus Rauramo told Kauppalehtithat the company has no less than eight gigawatts of wind and solar energy under license in the Nordic countries. So it is not yet a certain new production.

The main problem is the price. New production requires a high enough electricity price to make the investment worthwhile.

Demand is growing rapidly

Fortum’s of the forecasts used according to the Nordic countries’ electricity demand may increase by about 40 percent by 2030. If this happens, the average price of electricity will probably increase, as new production may require a licensing process of several years.

In addition, new production is largely weather-dependent wind and solar power. The problem is accentuated on a calm and windless frosty day, when consumption is at its peak and the price can shoot up sharply. It is not possible for all electricity users to reduce their consumption, so the bills threaten to grow even higher. Therefore, Finland needs more adjustment power that is flexible in these situations.

Ideological lock threatens

There are several options for the adjustment force. St1main owner of Mika Anttonen raised Above featured Wärtsilä powerhouse engines and Siemens gas turbines that could run on natural gas. According to Anttonen, the share of such reserve power could only be in the order of one percent of electricity production, but the discussion stops as soon as the fuel is fossil. According to him, it is an “ideological lock”.

This lock should be opened. Energy companies will invest if the price makes the projects profitable. Industrial investors, on the other hand, need certainty about the availability of electricity and the network. Petteri Orpon The (kok) government has an opportunity to break this deadlock by facilitating investments, improving licensing and taking care of the condition of the main grid. At the same time, one must dare to have an honest discussion about the power of adjustment.

Finland must present itself as an attractive investment destination, as the competition with other countries is getting tougher. A functioning electricity market has been a competitive advantage for Finland, and maintaining it now requires less ideology and more realism.