Electricity sector in Finland

[2] As part of the energy transition Finland has been replacing electricity generation from fossil fuels with nuclear power and renewables.

The national grid operator Fingrid, together with TSOs from other Nordic countries, produces yearly estimates about the availability of power in the winter demand peak.

[12] Due to a mild winter and industrial strikes the actual demand peak was only 12.4 GW and availability was never in question.

Fingrid created a voluntary support mechanism of 500 MW of demand response, which did not need to be called upon.

This is largely a consequence of cheap imported electricity, although domestic renewables have also increased in their share of production.

[20] As of 2024, Finland has five operating nuclear reactors in two power plants, all located on the shores of the Baltic Sea.

The largest source is hydropower (15-20%) which fluctuates yearly depending on rainfall, causing the share of renewable generation to also vary.

Other major sources are wood-based energy resources like black liquor from the forest industry, accounting for approximately 12% on average.

In recent years wind power (see below) has grown to be significant and renewables have surpassed 40% of demand.

[3][23] Wind power in Finland has been the fastest growing source of electricity in recent years.

That year, wind power production increased by 41% to 11.6 TWh, representing 14.1% of the country's electricity consumption.

[33] Company interest cost were reduced from the taxable income based on Sipilä Cabinet taxation rules.

This has caused some concern among observers about Russia being able to manipulate Nordic electricity prices or use the power plant as a leverage in conflict situations.

The plant was estimated to be operational by 2024 and projected to produce 1,200 MW of electricity, but all work was stopped in 2022 due to the Russian invasion of Ukraine.