4.5.2022 13:05
Current News

Investments in the main grid rise to EUR 3 billion

Over the next ten years, Fingrid will invest a record EUR 3 billion in the main grid. The investments will enable electrification and the increasing pace of construction of renewable electricity generation, as demanded by the energy revolution. As part of this investment programme, Fingrid is planning to build new cross-border connections to Sweden and Estonia.

Fingrid’s investments in the main grid will increase from the previous estimate of over EUR 2 billion to approximately EUR 3 billion over the next ten years. The growth in main grid investment is down to the electrification of society and the higher electricity consumption. Industry, city heating and transport are electrifying at a rapid rate as Finland heads towards its target of becoming carbon neutral.

“A strong main grid and renewable electricity generation are essential competitive factors for Finland. We are investing in the main grid with the aim of enabling the achievement of climate goals and realising industrial investments relying on clean energy to create welfare,” says Asta Sihvonen-Punkka, Senior Vice President at Fingrid.

Renewable electricity generation requires investments in the main grid and will boost Finland’s competitiveness

Renewable electricity generation is being built at a record pace: last year alone, Fingrid had more than 50 ongoing substation projects and numerous transmission line projects, which will enable up to 4,500 megawatts of wind power connections to the main grid. In addition to onshore wind power, interest in connecting offshore wind power and solar power generation to the main grid is rising sharply.

The number of enquiries concerning main grid connections for industrial facilities using clean energy has risen substantially. Recently, there has been particular interest in hydrogen production. Finland has excellent potential for producing significant quantities of clean and competitive hydrogen. The number of Finnish hydrogen projects is expected to increase in the coming years as European demand for clean hydrogen is likely to soar. In addition, large, power-intensive data centres and battery plants are being built in Finland. As the number of customers is rising, there will be no pressure to raise the unit prices of grid service fees, despite the major investments in the grid.

Strengthening cross-border connections and increasing the electricity transmission capacity inside Finland  

The increase in investments is driven by the goal of building new cross-border connections to Sweden and Estonia in the early 2030s. The connections will enhance the efficiency of the electricity market and promote balance in a power system dominated by wind power. The new cross-border connections will promote the shift away from fossil-based energy by enabling more electricity to be generated and consumed in Finland.

The most important main grid investment of this decade is the Aurora Line, a new electricity transmission connection between Finland and Sweden. Construction will begin on the Finnish side this year, and the connection will be completed in 2025. There are also plans to build a fourth interconnector with Sweden, known as Aurora Line 2, in the early 2030s. In addition, Fingrid is planning a third Estlink HVDC transmission link between Finland and Estonia. The connection could be built in the early 2030s.

The Aurora Line, the other new cross-border connections and the growing surplus in Northern Finland also fuel the need for greater transmission capacity from north to south to ensure that Finland remains a single price area in the electricity trade. The Forest Line, which will be completed this year, will strengthen the electricity transmission capacity from north to south. The transmission capacity between northern and southern Finland will receive a further boost when the Lake Line is completed in 2026.

 

 Fingrid’s investment plan.

 

Fingrid Current, a day of events focused on ensuring the functionality of the power system, will be held on Wednesday 4 May 2022. The events can be followed by webinar (in Finnish).

Further information:

Jussi Jyrinsalo, Senior Vice President, Transmission System Services and Grid Planning, Fingrid Oyj, tel. +358 30 395 5118