The Finnish energy sector in brief
March 2023

The Finnish energy sector in brief

Finland is one of the leading nations in renewable energy. The share of renewables in both energy consumption and electricity supply is more than 40% and one of the highest in the EU. Hydro and bioenergy account for a major part of renewables, but the share of wind power in total electricity generation has grown from almost zero to 16.7% over the last decade.

Finland is part of the Europe's leading electricity market Nord Pool. The Nordic and Baltic TSOs own a third of Nord Pool and are closely involved in its operations. The electricity market is divided in multiple bidding areas with individual prices. Unlike other Nordic countries, Finland has only one price zone. The monthly average prices were between 80 and 261 EUR/MWh in 2022, but there are considerable variations in weekly, daily and monthly averages.

The transmission grid covers nearly 15,000 kilometres of high-voltage lines and is operated by the TSO Fingrid Oyj. The national grid is linked with high-voltage connections to Estonia, Sweden and Norway. Regional high-voltage networks and local distribution networks are operated by 9 regional and 77 distribution network companies.

To accommodate increasing electrification and geographically segregated production and consumption hot-spots, significant new investments of around EUR 2.1 billion are planned over the next ten years to expand and upgrade the network. In its grid development plan for 2022-2031, Fingrid envisages the construction of 3,700 kilometres of new transmission lines and more than 100 new or upgraded substations. The development focuses on enhancing cross-border connections, in particular with Sweden, and improving the domestic transmission capacity from areas with high production in the north and at the west coast to areas with high consumption in the south.