Fortum's view on the Nordic Grid Development Plan 2019

Fortum calls for strong regional grid planning to enable the energy transition and electrification in the Nordics.

The Nordic TSOs published their bi-annual Nordic Grid Development Plan in August and Fortum shared its written response to the grid plan on 26 September. Fortum’s key messages are the following:

  • Energy transition and electrification of Nordic industries will require significant strengthening of the regional grid transmission system.
  • Farsighted and transparent grid planning decreases the uncertainty of investment decisions for market participants and the overall cost of the energy transition and electrification of our industries.
  • A stronger regional approach in grid planning is very welcomed and needed. The regional plan should be more than a compilation of national plans.
  • Socio-economic benefits of grid investments should be assessed from the regional market perspective rather than from national perspective.
  • Congestion revenues should be used to develop  the grid and to reduce the bottlenecks.
  • A separate regional financing envelope should be established where congestion revenues would be collected. These pooled resources would be used to remove bottlenecks from the most congested areas.
  • The number of price areas in the Nordic power market should be reduced, not increased. Pooled resources would help in directing resources to the most critical areas. 

Fortum’s respons in whole as pdf.