The energy transition of the power system is a hot topic, and it is increasingly evident in our daily lives.
Energy-related news is reported frequently. Clean power generation, electrification of industry and transportation, and developments in data and hydrogen economies have all been recognized as factors with potential to contribute to Finland’s economic growth.
To utilize these opportunities, it requires an effective power system that enables electricity to be transmitted efficiently as needed.
Very often attention is given to the physical network infrastructure, including its coverage, transmission and distribution systems, as well as ensuring sufficient capacity and connectivity.
An efficient power system must also be coupled with a well-functioning electricity market.
That’s the correct way to think about it, but an efficient power system must also be coupled with a well-functioning electricity market.
The electricity market is the element that sparks the power system to life and keeps it running. Furthermore, the electricity market contributes to creating the economic conditions for existing activities and determines how attractive the investment environment is for new entrants and creates the bases for the business.
Fingrid’s mission is to develop the electricity market and implement European electricity market developments in Finland as part of its system responsibility – and during the past years, Fingrid has been doing this with high intensity.
A number of reforms have been carried out in the electricity market to ensure more real-time and market-based operations. To this end, many stakeholders have had to work in close cooperation.
The list of changes is breathtakingly long – the single balance model, aFRR and mFRR capacity markets, the Datahub, the lmbalance Settlement Period, the 15-minute aFRR energy market, intraday auctions, flowbased capacity calculation, the 15-minute mFRR energy market, and the 15-minute continuous intraday market.
Believe it or not, more reforms are on the way: for example, the day-ahead market will be shifting over to a 15-minute time resolution, and the balancing power market will expand to cover all of Europe.
Electricity market developments and new electricity market solutions, together with the construction of the main grid, will enable the acceleration of the green transition, the cost-efficient growth of the power system and the safeguarding of operational capacity.
We are living in a time of change – being proactive and adaptable are vital for success. By nurturing these capabilities, we can forge a competitive edge for Finland in the energy sector.
Antti Keskinen
Senior Vice President, Electricity Market
Fingrid
