3.9.2014 11:30
Press Releases

Finland increasingly dependent on the import of electricity

”Finland is extremely dependent on the import of electricity" Because of the delay to the Olkiluoto 3 nuclear power unit and a significant reduction in Russian import, Finland has to import almost 3,000 MW of basic power to cover the domestic shortfall.
The basic power required is mainly imported from other Nordic countries. Some of the import also comes from Russia and Estonia, although this year electricity has mainly been flowing the other way from Finland to Estonia, and Russian import has been much less than in recent years.
 
Fingrid’s transmission connections to Sweden have been in heavy use this year. Between January and August, 12.7 terawatts of electricity were imported from Sweden, which is 62% more than the previous year. With regard to the market, import could be even greater than the transmission connections can handle. Therefore, this year the regional price has also been 25% higher in Finland than in other Nordic countries.
 
The Finnish electricity system can withstand normal disturbances, even in a situation of maximal import, but its capacity to cope with serious power plant or transmission connection faults is weaker than normal. Faults in transmission connections are also immediately reflected in the price of electricity.
 
If present conditions continue, the electricity import situation will continue the same until 2018, i.e. until Olkiluoto 3 commences the commercial production of electricity. With regard to Russian import, the key question is over the development of the capacity payment system in Russia. It is not possible to build new transmission connections within this timeframe but, on the other hand, transmission capacity will also be sorely needed in the 2020s. Fingrid is planning a new connection to Sweden, which would be completed by 2024 at the latest.
 
Fingrid to lower grid fees
 
Fingrid has set its grid fees annually with the aim of moderate profit permitted by the authorities. This year however, the predicted result is about to increase higher than estimated, due to market-driven revenue and expenses having been realised differently than anticipated. Fingrid has therefore made the decision to lower its grid fees for December by approximately 50 per cent.
 
Fingrid has made also a decision of the pricing for the year 2015. Next year's grid service prices will be cut by an average of 2 per cent compared to this year's current unit prices.
 
The company's reserve costs, congestion income, loss energy costs and Russian cross-border transmission income entail market situation-dependent uncertainty factors that are difficult to predict.
 
The fluctuations in the market-driven revenues and expenses are reflected in grid pricing, despite the fact that, through risk management, the company is endeavouring to balance out the impact of these factors on prices and the company’s result. The company’s aim will continue to be reasonable grid pricing on a European scale. A reasonable price is based on the company’s cost-efficiency for which we are working with all our strength, said President and CEO Jukka Ruusunen at a press conference for Fingrid’s Grid Day.
 
Fingrid’s national grid is a key part of Finland’s electricity system. The grid is the main electricity transmission network, to which major power plants, factories and regional distribution networks are linked. Fingrid makes sure that electricity is supplied without interruptions in all of Finland.
 
Today, Fingrid is holding a seminar for its stakeholders in Helsinki (at the Holiday Inn Messukeskus), which will deal with future tariffs, contract structures and the progress of the investment programme. You can follow the speeches at the seminar online either as a webcast or afterwards on recorded video.
 
 
Further information:
Jukka Ruusunen, President & CEO, tel. +358 (0)40 593 8428

Available by telephone on 3 Sep at 12.15 pm immediately after the press conference or after 4.00 pm.