Megatrends steer Fingrid’s operations. The impacts can be seen throughout society and in the procurement and supply chains used by the company.
The following four megatrends of the operating environment steer Fingrid’s operations:
Climate change and transformation of the energy system
The energy sector plays a key role in combatting climate change. The structure of electricity production is changing as the share of renewable energy grows and adjustable fossil-fuel condensing power production decreases. Wind and solar energy will soon be profitable without subsidies.
An increase in wind and solar power will result in a scarcity of power, flexibility and system inertia. Price fluctuations will increase, which will bring business opportunities to flexible production and consumption and energy storage technologies.
Fingrid does its part to combat climate change by building and maintaining the main grid. The transformation in the structure of electricity generation due to the efforts to mitigate climate change results in changes in the power system. We make it possible to connect new forms of energy production to the grid. We ensure the sufficiency of system reserves also in the future and prepare for a decline in flexible production capacity while at the same time developing the electricity market to meet the needs of a low carbon power system.
Our role is to actively propose improvements to the electricity market model that will make it possible to stay on a market-based and clean path. We seek new solutions for grid operations to ensure that the power system functions reliably and, with support from the markets, to find a balance between production and consumption.
Security of energy supply and electricity dependency
Society is becoming increasingly dependent on electricity. At the same time, society’s tolerance for disruptions to the availability of electricity is weakening: serious disturbances in electricity supply are among society’s greatest safety threats. Electricity sector risks are being prepared for as part of the European Commission’s clean energy Winter Package. The aim is to improve the security of electricity supply at the EU level and reinforce regional co-operation. According to the Winter Package, measures related to crises must be compatible with the rules for the common electricity markets.
For Fingrid’s part, implementing our investment programme, promoting the markets and developing our grid operations improve the reliability of the electricity supply and our preparedness in the face of crisis situations. In risk and continuity management, we continuously prepare for serious disturbances to the power system in different threat scenarios.
We are actively involved in international co-operation to develop European rules, and we are preparing for power system disturbances in co-operation with the Baltic Sea region’s TSOs.
Globalisation and responsibility
In addition, increased workforce mobility is making energy companies more international. The global financial market offers a well-managed company with a high credit rating a flexible and affordable way of procuring financing.
Responsibility is a key component of our corporate image. Regulations concerning corporate finance and social corporate responsibility are increasing on both a national and global scale. The importance of openness is growing.
For Fingrid, globalisation brings new opportunities, thanks to our expertise related to outsourcing services and international co-operation. We have also been successful for some time now in making use of the international financing markets. Responsible procurement of goods and services can globally promote sustainable development and ethical practices.
Digitalisation brings opportunities to improve the profitability of operations and creates a wide range of new e-services. On the other hand, an integrated network of everything can become an avenue for targeted attacks, in the most extreme case, a weapon in cyberwarfare. This also imposes specific cybersecurity requirements on Fingrid’s IT systems.
From Fingrid’s perspective, digitalisation enables even more productive operational processes, better customer service and more efficient sharing of market information. It also provides new tools for managing a changing and increasingly complex power system. Smart grid technology opens up new business opportunities for both current and new operators and, in turn, shapes our customer field.