Electricity markets transitioning to a market-based path
The Finnish Government’s objective of switching to carbon-free, clean and renewable energy is a worthwhile target, as long as the transition to green energy is cost-effective and does not compromise power adequacy. This is the view of Finland’s transmission system operator Fingrid, commenting on the Energy and Climate Strategy published today by the Finnish Government.“The Government’s Energy and Climate Strategy will bring the electricity markets back onto a market-based path. Finland’s solutions will also have an impact on its neighbouring countries. The Government’s message is clear: the electricity markets can be saved if the Nordic countries can find the political will to do so,” states Fingrid’s CEO, Jukka Ruusunen.
The Energy and Climate Strategy published today, 24th November, by the Finnish Government presents a package of policies and measures that concern the electricity markets and the power system. The policies underscore the active role of electricity consumers in the markets, price signals in the real-time markets, and the inter-Nordic retail markets. The strategy furthermore highlights the transition to a smart grid system, which will also help lay the groundwork for the rise of electric cars. Electric cars will enhance the system’s flexibility and contribute to the transition to a low-carbon electricity system.
An important development promoting the transition is the inclusion of the construction of a third alternating current (AC) connection between Finland and Sweden on the EU’s list of important procurements for 2017. Fingrid’s objective is to complete the new connection by 2025.
“Fingrid supports the Government’s target of reinforcing a market-based electricity market and abandoning large-scale support for renewable energy after 2020. The transition to a green energy system will require common regional decisions and actions,” stresses Ruusunen.
In Fingrid’s view, the switch to a future green electricity system can be crystallised into strengthening the position of the electricity consumer, developing the marketplaces in line with the changing structure of power generation, and the active participation of market operators in balancing the electricity system. The Energy and Climate Strategy takes these targets into account in a positive way.
Further information:
Jukka Ruusunen, President & CEO, tel. +358 30 395 5140 or +358 40 593 8428