Review by the President & CEO
We are creating a platform for a clean power system
Combatting climate change will call for concrete actions from us in the coming years. The transition to a cleaner power system and electrification of society are important elements of the change. Taking this immense task forward requires that the ‘platforms’ of the power system, in other words the transmission and distribution networks, are in good repair and ready to reliably transmit electricity also in the new operating environment.
Fingrid’s role as a platform builder and maintainer of the clean power system includes taking care of Finland’s grid system and developing it to meet future needs. The grid is currently in good repair. However, we need to keep our eyes open and be able to anticipate future power transmission needs. Finland’s power system will soon include one of the world’s largest nuclear power plants, and wind power has evolved from its role as a challenger into a financially highly competitive way of producing clean electricity. We welcome all clean forms of energy production as our customers.
Transformation of the electricity market
The electrification of society will further increase the significance of the reliability of the electricity supply. Fingrid’s duties include uninterrupted monitoring and operating of the power system such that society can trust in a reliable supply of electricity. This work must be developed constantly as the power system becomes more and more complex and dynamic. The utilisation of data and digitalisation will be more and more important tools for us.
In the future power system, there will be less flexibility in production than there is now. In that respect, the importance of hydroelectric power will grow further, and demand side management will be increasingly needed on the consumption side. The ‘operating system’ of the power system, i.e. the electricity market, requires a ‘version update’ of immense proportions to be capable of balancing power production and consumption also going forward. Extensive changes are under way and will be implemented in the early 2020s. Electricity trading will take place in 15-minute periods, the balancing power and reserve markets will function more effectively under the steering of Europe-wide trading platforms and, in Finland, the Datahub implemented by Fingrid will digitalise the electricity retail markets and boost their efficiency as well as open the door for regular consumers to become active operators on the marketplace. We have been given the task of project manager in this massive project. We realise that we cannot do it all on our own, and that the project requires close co-operation with other market operators and the authorities.
Customer work at the core
Well-functioning stakeholder engagement is a vital key to the success of a TSO. The situation right now looks good. Fingrid received global attention for its customer focus and transparency, which are exceptionally strong for a monopoly company, as we were chosen as the world’s best transmission system operator in the CHARGE Awards 2018, an international energy sector brand competition. The message is corroborated by our customer survey: 87 per cent of our customers are willing to endorse Fingrid’s approach to customer engagement. Stakeholder co-operation is challenging our organisations to further foster interaction with people, with humility and in a spirit that builds trust. We must earn our stakeholders’ trust every day. This is something we ensure through our responsibility work, which is integrated into our strategy, and by requiring responsible operating practices from our contractual partners, in accordance with the principles of the UN Global Compact initiative.
Fingrid has an essential mission in Finnish society. The power system is in the midst of a major transformation, making the role of the TSO even more important. Here at Fingrid, we are ready to face the challenges that the future will bring us. We work for Finland with our hearts and our minds.