Current challenges for the Finnish energy sector

11 June 2015, 11:45 EEST

Fortum's Chief Economist Simon-Erik Ollus in Montel's Finnish Energy Day, Helsinki, on 11 June, 2015.

Montel organised Finnish Energy Day in Helsinki on 11 June 2015. Electricity users as well as various players on the Nordic electricity market presented their views. Also the impact of both EU ETS and Russia on the Nordic electricity market was discussed.

In my opening presentation I gave a producer's view on the current challenges for the Finnish energy sector:

  • The Northern European power market today is oversupplied, and there is no urgent need for new investments.
  • The evolution towards a renewable energy system continues, but the development should be market-driven. First, all Nordic countries under the same RES elcert system, later, the CO2 price alone should steer decarbonisation.
  • The new governmental program leaves lots of gaps for energy sector.  Is it beneficial to burden CHP and district-heating? What about electric vehicles and cost-efficient decarbonisation?
  • The energy market are changing for good as a result of new technologies, digitalization and new environmental policies.
  • Prior investments in smart meters and grids would enable more active consumer participation. Maybe a consumer centric retail model would help?