According to the latest investment survey by the Confederation of Finnish Industries (EK), business investment outlooks are showing signs of recovery. While investments in the energy sector are not currently increasing, the implementation of many industrial projects depends on access to competitive electricity that can be built quickly and cost-effectively.
Finland is exceptionally well positioned to meet growing industrial electricity demand. Currently, more than 56 gigawatts (GW) of onshore wind power, around 12.5 GW of offshore wind power and nearly 26 GW of utility-scale solar power are under development. While not all projects will be realised, the overall pipeline demonstrates strong investor interest and the ability to increase electricity generation in line with demand.
“It is very encouraging to see renewed activity in industrial investment plans. At the same time, it is important to remember that many planned investments are based on the assumption that competitive electricity will be available. Finland is well positioned to meet this demand thanks to its exceptionally strong renewable energy project pipeline,” says Anni Mikkonen, CEO of Renewables Finland.
Wind and solar power are practically the only forms of electricity generation that can be deployed rapidly enough to meet growing industrial demand. They are also the most cost-competitive sources of electricity in Finland. New electricity demand is expected from sectors such as data centres, hydrogen production, industrial electrification and synthetic fuels. At the same time, Finland offers some of the most competitive electricity production costs in Europe.
“Competition for new investments is intense across Europe. Finland’s strength lies in its ability to offer investors competitive electricity, a reliable power system and a large number of energy projects at different stages of development. This competitive advantage should be safeguarded,” Mikkonen says.
Renewables Finland emphasises that a predictable operating environment and long-term policymaking are essential for enabling new electricity generation investments. Regulation should support the advancement of new projects and the development of the power system at a time when electricity demand is expected to grow significantly in the coming years.
Read the Investment Survey (In Finnish)
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