The prolonged cold spell pushes electricity prices to record highs at the beginning of the week, reaching as high as 70 cents per kilowatt hour. The media headlines scream about price spikes, and social media is abuzz with arguments for and against the construction of a new nuclear power plant. The situation is not helped by the fact that when fossil fuels are phased out, the demand for electricity will triple in the coming decades from the current consumption of 85 TWh.
Wind power produces Finland's cheapest electricity, at around €30-45/MWh. If we want to influence the price of electricity and price spikes during this decade, wind power is the solution. Wind and solar power provide affordable, emission-free energy quickly and in response to growth in consumption.
The problem with wind power is its uneven distribution. Most of the production capacity has been built in western and northern Finland, which makes the entire electricity system more vulnerable to weather fluctuations and bottlenecks in the transmission network. Wind power must therefore be built more evenly across the country, including in eastern Finland. Spreading it out over a wider area will even out electricity production and price spikes, because there's almost always wind somewhere in Finland. Electricity production should always be built as close as possible to where it's used to keep transmission costs down.
Alongside solar power, wind power is by far the most viable solution and also increases the stability of our entire energy system. The construction of wind and solar power plants is supported by the fact that, in an unstable global situation, we must strive even more towards energy self-sufficiency. Renewable energy is key to increasing crisis resilience. This means ensuring security of supply by decentralizing energy transmission, production, and storage.
Wind and solar power also create conditions for the utilization of further refined products produced with electricity, such as hydrogen. Further refined products, in turn, enable Finland's struggling economy to flourish. We do not want to return to imported electricity from Russia, fossil fuels, and nuclear energy.
Jami Holtari, Chief Executive Officer
Hydrogen Valley Finland
