Finland’s electricity system increasingly relies on renewable electricity generation. This challenges the system’s balance, particularly when fluctuations in production are large or unpredictable. It is vital to ensure sufficient flexibility in the system even when renewable generation is insufficient.
A report by the Ministry of Economic Affairs and Employment’s working group on fossil-free flexibility is open for consultation and seeks to address this challenge.
“Consultation responses are important because we are now setting the principles by which Finland will ensure electricity system flexibility in the future, without resorting to fossil fuels,” Auris Chief Growth Officer Ville Karttunen says.
The topic is also prominent in public debate. A Helsingin Sanomat editorial on 24 June reminds us that this is not just about electricity generation technology, but about choices across the entire energy market.
“The question is whether we build a system based on competition or subsidies, and who can participate in that system to provide flexibility.”
Auris Energy has submitted its own response to the ministry’s working group report. We emphasise that the system’s development must be based on market principles, technology neutrality and practical feasibility.
- Flexible capacity is a scarce resource, and markets are the best way to allocate it
Dispatchable capacity is a critical but diminishing resource in the electricity system. A marketplace for this capacity should be built on market principles and technology neutrality. This ensures that all technologies capable of providing flexibility can compete on equal terms. The result is an efficient, affordable overall solution. - Biogas is a ready solution for fossil-free flexibility
Biogas offers the opportunity to provide large amounts of flexibility quickly and for extended periods. Its fossil-free origin can be verified through guarantees of origin, allowing biogas to be used without separate subsidy structures and within existing market mechanisms. This is a tangible, practical solution available today. - A one-megawatt minimum participation threshold improves competition
A minimum capacity threshold of 1 MW, in line with Fingrid’s marketplaces, would be a natural choice. The lower the minimum capacity per unit, the more operators can participate in balancing. This increases competition and lowers costs. It also enables smaller operators to participate, diversifying the system. - Existing capacity must be included
Physically existing capacity that has not previously participated in balancing markets, such as large backup generators, must be available for flexibility. Even without investment in additional capacity or longer service life, simply preparing for market participation requires investment in areas such as automation. These resources must not be left unused.
In summary:
Building fossil-free flexibility does not require a burdensome subsidy model, but a functioning market structure with open competition.
“A technology-neutral, cost-effective model taps into the full available flexibility potential, quickly, without delay and without fossil fuels,” Karttunen says.