Grid company of the future

Security of supply has improved, but work is still ongoing

Electricity grid companies have invested over EUR 8 billion between 2010 and 2022. The investment volumes have increased by 50% after 2012. The underground cabling of overhead lines and the widening of the line lanes of overhead power lines have significantly reduced the power outages experienced by customers. For example, the Aapeli storm of 2019 and the Aila storms of 2020 gave rise to record-strong storm winds, but large-scale power outages were largely avoided thanks to the distribution grid companies’ security of supply investments.

Caruna has also been renewing its electricity grid to be weather resistant at a rapid pace, which is now significantly reducing the number and duration of faults compared to previous storms. Automation has also been added to the electricity grids, which can be used to restore electricity to customers faster. At the beginning of the 2010s, approximately 60% of Caruna’s customers were within a grid area falling under the security of supply criteria of the Electricity Market Act (6/36 hours). In 2023, the security of supply criteria were already met for more than 90 % of customers.

Implementing the energy transition requires new investments

Enormous investments are needed to implement the energy transition. Of these requirements, approximately EUR 14 billion are directed at distribution grid companies. The distribution grid company of the future does not only move electricity, but also offers the customer an opportunity to participate in the development of a green energy system.

A large part of the upcoming change of the energy system concerns specifically the operations of local distribution grid companies, although the media and social debate often only mention the main transmission grid. In 2030, the number of customers generating solar electricity in Caruna’s network will already be 50,000, and electricity in the distribution grid will flow in both directions. At the same time, electric cars will make up a quarter of the Finnish car fleet. Chargers require a lot of instantaneous power from the electricity grid. Hydrogen production and district heat electrification through electric boilers and heat pumps also bring new large electricity-consuming items to the grid, which the distribution grid companies must fit into the electricity grid.

Fluctuating electricity production and consumption require smart grid control. The distribution grid utilizes industrial-scale and household electricity storages. The future distribution grid company will also offer diverse services to customers ranging from energy-saving services to various flexibility services. Part of the consumption of customers can, for example, be controlled through operators who assemble larger packages from small loads.

Huge investments in both infrastructure and services require grid companies to operate efficiently. Digitalisation is one of the key means of improving efficiency, enabling the utilization of an even more efficient electricity network infrastructure and better services for customers. The operating conditions of the future distribution grid company in terms of expertise, ICT systems, investment capability and regulation must be in order so that electricity is transmitted to customers reliably and at a reasonable cost.

All of this requires investments to materialize