Review by the President & CEO
Fingrid faced with its biggest challenge ever
Finland wishes to be at the forefront of battling climate change and aims to achieve carbon neutrality by 2035. Fingrid is also working towards this goal. The biggest challenges are faced by the energy sector, which is the largest producer of greenhouse gas emissions in Finland. According to the Government Programme, “electricity and heat production in Finland must be made nearly emissions-free by the end of the 2030s while also taking into account the perspectives of national emergency supply and security of supply”. The most efficient way to reduce the energy sector’s emissions is to “clean” the power system and to use the produced clean energy to reduce emissions from industry, district heating and transport.
With our society being increasingly powered by electricity, electricity consumption will grow substantially in future. New electricity production is required to replace phased-out production capacity and, in the longer term, to meet increasing demand. Once completed, the Olkiluoto 3 nuclear power plant will significantly increase clean electricity production. In addition to this, wind power is establishing itself as one of the cornerstones of Finland’s electricity production alongside nuclear power. Hydropower plays an increasingly important role as balancing power. The energy system must be cleaned at a reasonable cost, in accordance with the principles of social fairness and without compromising the competitiveness of electricity-consuming industry.
Fingrid as an enabler of change
Part of Finland’s national heritage, the electricity transmission main grid goes back 90 years. The main grid of the future will serve as a platform for a clean, emissions-free power system. Increasing amounts of electricity must be transferred from production plants to consumers and industry while making sure that the amount of electricity produced is, at any given time, exactly equal to the amount consumed. Fingrid develops the main grid in the long term so that the increasing clean electricity production can be connected to the grid and passed on to consumers and industry. In the next few years, we will be busy especially connecting wind power to the main grid and to the electricity market. The pace of wind power construction is so fast that, despite all our efforts, we may not be able to connect all of the projects to the main grid in a manner hoped for by wind power constructors.
Electricity production will have less flexibility to adapt to consumption, which means that the required flexibility must be provided by demand-side management and a well-functioning electricity trade in the European electricity markets. Fingrid is renewing the electricity market in a bid to find the most efficient balance possible between production and consumption, also going forward. Last-minute balancing is increasingly based on automatic adjustment instead of manual adjustment. Increasingly powered by electricity, society is more and more dependent on a reliable supply of electricity. We monitor the power system at all times and deal with disturbances efficiently so that society can count on a reliable supply of electricity also in future.
Change is picking up speed, but at the same time we must take care not to make any compromises on quality and occupational safety. For us, sustainability is not marketing communications. Sustainability means real, concrete actions when it comes to managing people, the environmental impacts of our operations and good governance. We recognise our key role in Finnish society now and in future: society’s best interest is inherent in all of our operations. Fingrid’s employees, who work at one of Finland’s greatest workplaces, are motivated by our important societal task and role in battling climate change – also in the new decade.
President & CEO