The need for balancing power increases

As the production of weather-dependent wind and solar power increases, the fluctuations in electricity production will become quicker and more significant in the future. This will increase the need to balance power. Balancing power refers to electricity production that is rapidly available in the event of a disruption in production or that is required to even out peak consumption – it ensures balance between electricity production and consumption.

It is estimated that the need for balancing power will double by 2030. To ensure a balanced electricity system, we need to pull out all the stops: adjustable production, flexible consumption and in the future, extensive energy storage as well.

Our hydropower company PVO-Vesivoima Oy is commissioning a 3 MW ultracapacitor at its Kierikki power plant on the Iijoki river. An ultracapacitor is a short-term energy reserve that improves the performance of a hydropower plant and meets the growing need for balancing power. This is PVO-Vesivoima’s first ultracapacitor project to pilot the technology for possible larger investments.

Since February 2024, we have investigated the possibility of building a pumped-storage power station to Northern Finland, in the area of Lake Kemijärvi. The purpose of the planned pumped-storage power station is to regulate and secure the supply and production of electricity. The pumped-storage power station would help secure the availability of electricity in Finland.
In February 2025, the project moves to the next phase, which is the environmental impact assessment (EIA).

It is not yet possible to store large amounts of electricity. Every single moment, enough electricity must be produced to meet its consumption.

Developing regulation capacity of hydropower and combined production plants

Hydropower is Finland’s largest balancing power, and it accounts for about 70 per cent of daily balancing needs in electricity production. We at Pohjolan Voima have been continuously working to maintain the regulation capacity of hydropower and to develop it, while respecting the environment, residents and users of waterways.
Read more on our hydropower production.

Hyropower is Finland’s largest balancing power.

We have also started assessing the regulation capacity of combined production plants – CHP plants. Combined production refers to plants that produce both heat and power simultaneously. The main purpose of a CHP plant is to produce steam for a local industrial plant or district heat for consumers, but it also produces electricity. We want to identify the opportunities these combined production plants offer to support the Finnish electricity system flexibly and based on market terms.