5.4.2017 11:50
Press Releases, Electricity Market, Power System

Fingrid enables power system transition: Mega investments and proposals for concrete reforms for the electricity market

​The power system is being shaken by an unprecedented transition, with carbon-free and weather-dependent electricity generation rapidly gaining ground. Fingrid targets extensive, efficient electricity markets that ensure power adequacy in the Baltic Sea Region. The green power system of the future must be supported by strong transmission connections and market rules revamped for the 2020s.

Investments of hundreds of millions of euros in the grid

Fingrid is preparing three major transmission connections that will help make the switch to a green electricity system well-controlled and safe.

Investment projects of hundreds of millions of euros·       New overland (“Forest Line”), 400 kV, from Oulu to Petäjävesi. Expected completion in 2022, EUR 85 million·       Third AC link between Sweden and Finland at the latest in 2025, EUR 200 million·       New marine (Kvarken) DC link from Vaasa region to Sweden. Expected completion by the end of 2020s, EUR 350–410 million.  

A third 400 kilovolt AC link will be built between Finland and Sweden at the latest in 2025. Inclusion of the connection, which will cost around EUR 200 million, in the EU’s list of energy infrastructure priority projects during 2017 is important to secure the project schedule. The new connection will increase the transmission capacity between the two countries by 800 megawatts. The transmission connection to Sweden also requires strengthening Finland’s internal connections. The Forest Line from Oulu to Petäjävesi will increase the transmission capacity between northern and southern Finland by 700 megawatts.

At the same time, the Finnish and Swedish TSOs have started planning the new Kvarken DC link. According to the plans, the new connection of around 800-megawatt connection will be built by the end of 2020s. The Kvarken connection would replace the Fenno-Skan 1 DC connection, which is reaching the end of its service life. In Finland, the starting point for the new link would be in the Vaasa region.

“We are part of the developing Baltic Sea Region electricity market. We develop electricity market operations from the perspective of regional and European markets. The new transmission connections will bring market benefits to the whole Baltic Sea Region and enable a transformation of the power system which will involve a major increase in renewable electricity generation,” says Jukka Ruusunen, President & CEO of Fingrid.




Electricity market revamp underway
In addition to strong transmission connections, the switch to a green power system requires updating the electricity market rules to reflect the energy shift. Today, Fingrid is publishing an action plan titled Our Shared Journey – a roadmap towards achieving a green power system. It contains concrete initiatives and measures and ongoing projects to develop the markets. The publication is a continuation of a project that was started a year ago to bring the electricity market back onto a market-based development path. Many of the measures call for extensive domestic and international co-operation between the electricity market stakeholders.

The electricity market development measures can be crystallised into strengthening the position of the electricity consumer, developing marketplaces in line with the changing structure of power generation, and the active participation of market operators in balancing the electricity system. Drawing on digitalisation and developing market models enable, for example, the indirect participation of household users in the electricity market on a new scale.

The latest energy issues at a seminar and webcast on 5th April, starting at 1 pm
The seminar programme kicks off at 1 pm, and it can be followed live on the internet:
In Finnish: http://prospectumlive.com/event/fingrid_fi
In English: http://prospectumlive.com/event/fingrid

Information of the event can also be found from:

Further information:
Jukka Ruusunen, President & CEO, tel. +358 30 395 5140
Asta Sihvonen-Punkka, Senior Vice-President, tel. +358 30 395 5235 (electricity market)
Jussi Jyrinsalo, Senior Vice-President, tel. +358 30 395 5118 (transmission line projects)