Electricity consumption is set to increase sharply – more balancing power will also be needed

Growth in Finland’s electricity consumption is expected to accelerate in the coming years. The increase is driven particularly by data centre and electric boiler projects. At the same time, Finland has a large number of well-advanced wind and solar power projects, although their implementation depends on investment decisions by electricity producers. In addition, more weather-independent balancing power will be needed.

The number of electricity consumption grid connection agreements signed for Finland’s power system has increased significantly. By mid-August, the planned final combined capacity of data centre projects that have signed connection agreements totalled nearly 5 gigawatts based on information provided by project developers, including projects connected to distribution networks. In addition, the combined capacity of electric boiler projects that are under construction or already in operation has exceeded 3 gigawatts.

Signing a connection agreement does not guarantee that a project will be implemented at its full planned scale. Typically, construction begins after a connection agreement has been signed, and electricity consumption increases gradually over several years. Projects also do not immediately use their full declared capacity once connected to the grid.

If all projects that have signed connection agreements were implemented in full over the coming years, they would increase Finland’s electricity consumption by nearly 40 per cent compared with the 2025 level. According to Fingrid’s estimate, achieving consumption growth on this scale would likely take at least five years.

“Finland has excellent opportunities to grow through clean electricity, and wind and solar power capacity can be increased significantly. However, alongside weather-dependent generation, we need more balancing power to ensure the balance of the power system, security of supply and competitive electricity prices even when wind and solar generation fluctuate. This could include engine power plants or other forms of flexible electricity generation. It is important that growth in electricity consumption is accompanied by sufficient and timely investments in power generation. Large new operators with steady electricity demand should actively promote solutions that ensure adequate power capacity and flexibility,” says Asta Sihvonen-Punkka, President and CEO of Fingrid Oyj.

Demand for new grid connections has remained very strong. In addition to data centre and electric boiler projects, a large number of battery energy storage projects are seeking connections. Connection agreements have already been signed for more than 4 gigawatts of electricity storage capacity.

Although the transmission grid is being expanded at a record pace, the additional connection capacity created by ongoing transmission grid investments has already been almost fully reserved in many areas, while interest in new connections has not diminished. As a result, region-specific waiting times for new connections are expected to continue.

“Finland’s clean, reliable and competitive electricity system provides a strong foundation for new investments. Particularly in northern Finland, new industrial investments can be connected to the transmission grid on a very rapid schedule, which is a competitive advantage for Finland. Going forward, it is essential that sufficient balancing power, flexibility and transmission capacity are developed alongside growing electricity consumption,” says Asta Sihvonen-Punkka.

For further information:

Asta Sihvonen-Punkka
President and CEO
Fingrid Oyj
Tel. +358 30 395 5235