Sector Outline Finland: Reserve Markets

The Finnish TSO Fingrid procures different kinds of reserves to balance the grid. These include power plants, consumption units and energy storages that can adjust their power in accordance with the needs of the grid.

The reserve markets are based on auctions and the bulk of compensation is paid for maintaining the reserve capacity, regardless of whether the reserve is activated or not. In some reserve products, changes in the energy production caused during activation are also compensated.

Wind energy is well-suited for decreasing production when there is a need for down-regulation. The potential for extra revenue in the reserve market becomes particularly appealing during periods of low electricity prices. Recognising this, the Finnish TSO has pinpointed wind farms as valuable assets for providing reserve power. Efforts are underway to tailor their offerings to enhance the appeal and profitability for the wind power industry. Additionally, long-term contracts as a means to secure steady income streams are being explored.