Fingrid to invest a record EUR 2 billion in the main grid
This decade, Fingrid will invest a record EUR 2 billion in electricity networks and substations on Finland’s main grid. The main grid will be substantially reinforced as the objective of making Finland climate-neutral by 2035 will require a significant increase in emission-free electricity generation and consumption.
The investments required for the main grid have risen significantly since plans were drawn up last spring estimating the total investments at EUR 1.4 billion. The number increased to EUR 2 billion over the summer and autumn. One of the main reasons for the increase in required investments is the growth in the volume of wind power, which has increased more rapidly than projected.
“We have received wind power connection enquiries for projects totalling tens of thousands of megawatts, and thousands of megawatts will come online in the near future. We are responding to customers’ needs and ensuring that the main grid does not become the limiting factor in realising Finland’s objective of becoming carbon neutral,” says Jussi Jyrinsalo, Senior Vice President, Grid Planning at Fingrid.
Maintaining a single electricity market price area requires investments
Fingrid has been able to maintain Finland a single electricity market price area, which means that the wholesale price of electricity is the same everywhere in Finland. Significant investments are required to ensure this does not change. The first phase of reinforcement is the Forest Line, a transmission line that is currently under construction between the Oulu region and Central Finland. Plans have also been made for reinforcements to the Lake Line, which goes from Oulu to Lappeenranta.As the output of the thermal power plants in Southern Finland continues to decrease, the Forest Line and the other new transmission lines will carry inexpensive, emission-free energy from the north to satisfy the growing needs in Southern Finland.
In addition to the Forest Line and its other transmission line projects, Fingrid is constructing and renovating a record number of substations all over Finland. The main grid’s cross-border connections are also being strengthened. “In terms of workload, we are going through an unprecedented construction boom. This represents a challenge for our organisation, as well as the companies building the grid,” says Timo Kiiveri, Senior Vice President, Asset Management at Fingrid.
Investments will also be needed in the Helsinki metropolitan area, as the reduction in the volume of electricity generated in the cities and the continuous expansion of the capital region call for substantial improvements in electricity transmission connections in the region.
Fingrid’s annual investments amount to approximately EUR 200 million, a sum that covers dozens of projects all over Finland. The vast majority of the investments in the main grid – accounting for 70 per cent of the total – are in new construction, while the remainder will be spent on refurbishing the old grid.
The most significant investments in the main grid from 2021 to 2030:
|Strengthening connections between the north and the south||EUR 550m|
|Connecting wind power||EUR 450m|
|Cross-border connections||EUR 300m|
|Power supply to Greater Helsinki||EUR 100m|
|Number of new substations||30|
Jussi Jyrinsalo, Senior Vice President, Fingrid, tel. +358 30 395 5118
Timo Kiiveri, Senior Vice President, Fingrid, tel. +358 40 543 3039
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