The Nordic TSOs publish joint report: Nordic Grid Development Perspective 2025
The Nordic TSOs publish the report Nordic Grid Development Perspective 2025. In the report we present our perspective on the overall trajectory of the Nordic power system, which is undergoing significant changes with the expansion of renewables, electrification and new industrial demand. This year’s report reaffirms the Nordic TSOs commitment to do what we can to enable a successful transition. Our unique and long-standing cooperation is a solid foundation for jointly adressing emerging challenges and developing solutions together.
Key takeaways from the report:
- All the participating countries benefit from an integrated Nordic power system, which increases security of supply and ensures a more efficient system. In this way, we can make the most of our different competitive advantages and reduce the overall costs.
- We expect significant growth in electricity consumption – how much depends on production. Electrification, more activity in industry, and data centres are strong drivers for increased electricity consumption in all the Nordic countries. Consumption growth assumes low enough electricity prices and without new electricity production, high electricity prices will limit consumption growth. Technology costs and market conditions will also be decisive for the development.
- The Nordic capacity balance will be tighter - we need more flexibility. Increased intermittent generation and rising demand will make it more challenging to balance the system during hours with little solar and wind production. Batteries, flexible consumption, and dispatchable power plants are crucial to ensure system adequacy.
- Fundamental change in system characteristics call for common solutions. We must ensure operational security as we integrate a significantly higher share of consumption and production connected via power electronics. The Nordic TSOs will continue to work dedicatedly to identify and implement appropriate solutions, also in partnership with external stakeholders.
- Substantial grid investments are essential, both nationally and across borders, to connect new customers, transport increasing power flows between regions and to balance short-term variations in power supply and demand.
- We are investigating all possibilities to use the grid more efficiently. We also strive to unleash time and cost reduction potential through transparency on our grid development plans and working together to identify upsides from increasing standardization on components and technical requirements.
- We need active participation from grid customers, to ensure flexibility, system balance, stability and efficient use of the power grid and the Nordic TSOs are committed to develop solutions that unleash the potential.
- The energy transition is a joint effort. A supportive regulatory framework, more efficient permitting process, effective governance and holistic development of electricity production, consumption and infrastructure will be decisive for a successful energy transition.
More information:
Annika Ahtiainen, Fingrid Oyj, firstname.lastname@fingrid.fi