Fingrid Newsletter 1/2024: Prospects for future electricity production and consumption updated – Fingrid prepares for substantial growth during the ongoing decade

1/2024 View in browser

Prospects for future electricity production and consumption updated – Fingrid prepares for substantial growth during the ongoing decade

Fingrid has updated the forecasts for electricity production and consumption used in the main grid planning. The big picture of the forecasts remains unchanged: Finland’s prospects for success in the energy transition are extremely promising. Fingrid has continued to receive connection inquiries from electricity producers and energy-intensive industries. Enabling investments necessitates significant development and construction of the national grid.

Main grid transmission reliability rate reached the highest recorded level in 2023

In 2023, the main grid managed by Fingrid recorded the best transmission reliability rate since measurements began. Several other key figures describing the main grid also reached record highs.

The main grid transmission reliability rate indicates the amount of energy transmitted for consumption in the main grid in relation to the total energy available for transmission. Last year, the transmission reliability rate was the highest since measurements began at 99.99995%. Several other key figures describing the main grid also reached record highs. The frequency quality in the Nordic synchronous area remained good.

Fingrid’s Financial Statements Bulletin January–December 2023: Clean and high-quality electricity system and largest ever grid investments created conditions for electricity consumption growth

Fingrid’s consolidated financial statements have been drawn up in accordance with the International Financial Reporting Standards (IFRS). Unless otherwise indicated, the figures in parentheses refer to the same period of the previous year. The information published in this report is based on Fingrid’s audited financial statements for 2023, published in connection with this bulletin.

Guidelines for weather dependent energy producers to join reserve market

The share of renewable energy in power generation continues to grow, and we want to encourage weather-dependent energy producers to participate in reserve markets. As part of this initiative, we have prepared a guidance document that specifies the participation of weather-dependent production in automatic reserve products.

Construction of a main grid cable connection in Helsinki to begin

Construction of a new underground main grid cable connection in Helsinki will begin this spring. The project, run jointly by the City of Helsinki, Helen Electricity Network and Fingrid, will respond to growing electricity consumption in the Helsinki Metropolitan Area and promote the green transition. Construction began on the connection from Vaarala in Vantaa to Viikki in Helsinki in December with the clearing of trees from the cable route and worksite areas. The project is proceeding on schedule and is due for completion in 2026. 

Fingrid and Nord Pool extend market surveillance cooperation to the aFRR energy market starting in May

Fingrid and Nord Pool have started a joint project on market surveillance of the aFRR energy market, which will start in May. The aim of the project is to have market surveillance of the aFRR energy market in cooperation with Nord Pool same time as the trading begins in the new marketplace. The ultimate responsibility for market surveillance and its implementation remains with Fingrid.

Fingrid has submitted its proposal regarding hedging opportunities between Finnish and Swedish bidding zone borders to the Finnish NRA

Fingrid has submitted its proposal to Energy Authority regarding hedging opportunities between Finnish and Swedish bidding zone borders on 22.12.2023. Fingrid commits to investments and other actions that support the functioning of the physical and financial electricity markets. As new hedging products are entering Finland and the other Nordic countries voluntarily in market-based manner, Fingrid does not propose direct subsidies for individual hedging products as recommended in ACER's decision.

Active electricity markets = strong system security

In order to maintain system security, it is vital to incorporate new and existing forms of flexibility in electricity production, storage and consumption into the reserve markets. The electricity market witnessed many highly unusual events and situations last autumn and in early 2024. The power system functioned normally throughout these situations, and the electricity supply was sufficient, thanks to the activity of electricity producers and users, as well as close cooperation and successful communication within the sector.

Read a viewpoint from Fingrid's Tuomas Rauhala >

Customer needs and Energy Authority's new regulatory model shape grid investments

The Energy Authority, which regulates the regulated grid operations and their return, has given its decision on the methods concerning the specification of the return for the electricity transmission grid operations for the sixth regulatory period 1 January 2024–31 December 2027 and seventh regulatory period 1 January 2028–31 December 2031. In its statements, Fingrid has presented its views on the guidelines concerning the regulatory methods published by the Energy Authority and on various regulatory decision drafts presented towards the end of the year.

Timo Kiiveri appointed Fingrid's Deputy CEO

On 20th of December, Fingrid Oyj’s Board of Directors appointed Timo Kiiveri, M.Sc. (Tech.), as the company’s Deputy CEO as of 1 January 2024 with the current Deputy CEO Asta Sihvonen-Punkka stepping into the role of the company’s President & CEO.

Timo Kiiveri has been with the company and served as a member of the Executive Management Group since 2019, with responsibility for grid construction and maintenance.

Fitch Ratings has affirmed Fingrid Oyj’s rating at ‘A+’, outlook revised to Negative >

S&P Global Ratings has downgraded its ratings on Fingrid Oyj to ‘A+/A-1’, outlook stable >

Supplement to the proposals of Fingrid Oyj’s Shareholders’ Nomination Board to the Annual General Meeting 2024 >

Invitation to participate in the development of technical requirements for Dynamic FFR, sign up before March 8th >

Come meet and greet us at Vaasa EnergyWeek (March 11th to 14th) on the 12th at Wind & Renewable Energy Day and on the 13th at Energy Storage Day!

Läkkisepäntie 21, Helsinki

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