The electricity generation structure is expanding, decentralising, and becoming lower in emissions to meet the increasing demands of electrifying industries. The power system is in the midst of an unprecedented transition, which calls for major investments in the main grid.
Fingrid constantly has more than 100 projects in progress. We aim to ensure that Finland retains sufficient transmission capacity and remains a single bidding area for electricity trading. A strong main grid is also a competitive advantage for the region, attracting investments in consumption and generation. For us, the starting point is to ensure that our investments do not substantially change the unit prices charged under the main grid tariff because the billable volume of electricity transmission is also increasing.
We will invest more than EUR 2 billion in the main grid this decade, and in the coming years, the investment pot will exceed EUR 300 million per year. Financing is obtained in a decentralised way on international markets for bonds, commercial paper, and loans.
The Nordic Investment Bank recently granted a green loan of EUR 70 million, and the interest rate on a EUR 300 million revolving credit facility is tied to our company’s sustainability targets. The more we succeed in connecting renewable energy to the main grid and upholding occupational safety, the cheaper the loan will be for us – a genuine win-win situation.
Our goal is to increase the share of green financing. High-quality operations throughout the supply chain – material suppliers, service providers, and Fingrid employees – help us maintain a good credit rating and attract investors to finance our operations in the future. We also use the income generated from bottlenecks at national borders for investments to improve the functioning of the electricity market, such as the Forest Line, Lake Line II, and Aurora Line.
By the end of this decade of intense investment, we will have an extra 3,500 kilometres of main grid lines and dozens of new substations, as well as a growing and satisfied base of customers.