Distribution grid investments enable the clean transition and security of supply

Finland is undergoing an unprecedented energy transition as we move from fossil fuels to clean energy sources. Electricity distribution grids and their development is in the centre of this process. The investment need of the Finnish electricity distribution grid is around 1.2 billion euros annually, of which Caruna’s share is around 200 million.

Electrification of society

Society will become even more dependent on electricity as emissions are reduced and digitalisation progresses

Renewable electricity production

Due to growing demand, electricity production will need to be increased strongly in the coming years, and electricity production capacity must more than double compared to today. Finland has an excellent opportunity to build clean electricity production, especially wind and solar power. However, construction takes time. Permit processes and municipality-specific requirements may delay construction by years, and access to the grid connection is prolonged as investments are reduced.

Active consumer

Electricity cannot be stored in large quantities and therefore the electricity market urgently needs flexibility in order to balance price fluctuations

Electric cars

Smart charging brings savings to the customer and balances the electricity system.

Electrified heating

Heating is becoming electrified at a rapid pace - this requires investments in the distribution grid.

Grid company of the future

The grid company of the future will provide a diverse range of services and a platform for the implementation of the energy transition, if given the opportunity

Securing the investment capability of electricity distribution companies is essential in enabling the energy transition and security of supply

It is essential that the Energy Authority makes changes to the regulatory model steering the natural monopolies of distribution grid companies in order to enable the implementation of the investments.

Strong distribution grids are a competitive advantage – anticipatory investment is key

Strong distribution grids bring vitality to the EU, Finland and municipalities. Distribution grids need anticipatory investment in order to enable the clean transition and improve security of supply.

The new regulatory model of the Energy Authority must be amended to enable critical investments by distribution grid companies in order to ensure the clean transition and security of supply

This is done through an amendment to the Electricity Market Act and/or by cancelling the harmful changes to the regulatory model. The regulatory model should also enable cost-effective flexibility solutions for grid companies in a socially sensible way.

Permitting for clean energy distribution needs to be made quicker and streamlined to ensure climate goals are met on schedule

Tightened construction requirements can increase the cost level of investments by as much as one
third. Legislation should not direct municipalities to solutions that prolong construction times.

Regulation must be predictable and enable technological development

As electricity grids have a lifetime of several decades, grid regulation must be long-term. Electricity grids for the rest of this century are already being built today. Technology neutrality is crucial for enabling technological development, i.e. future cost-effective and optimal solutions.

Download brochure

Distribution grid investments enable the clean transition and security of supply