Finland will need more nuclear power for “green” growth, minister says

Volatile electricity prices driven by the growth of renewable energy sources are deterring investment in “green” projects, according to Finnish Energy Minister Kai Mykkänen. The minister said electricity prices need to be stabilised by building new nuclear power plants and sources that provide flexibility. The foreign news outlet Montel reported.

At a conference organised by the Finnish Wind Power Association, Finland’s energy minister said the country has nearly 30 billion euros’ worth of “green” investments at various stages of preparation, including green hydrogen production, batteries and green steel. However, Mykkänen said their realisation requires an increase in baseload electricity generation to stabilise spot electricity prices.

“That is precisely why we are trying to tackle this problem by attracting more nuclear projects to Finland, particularly small modular reactors,” the minister said.

Finland currently has five nuclear reactors in operation, with a total installed capacity of 4.4 GW, and is preparing a review of legislation to enable the construction of small modular reactors.

Not only negative prices, but also a record-high price

In addition to new zero-emission baseload sources, reducing spot-market electricity price volatility will require the introduction of a capacity mechanism to support sources that provide flexibility, according to the minister. A draft law aimed at introducing a capacity market is expected to be submitted to parliament for approval next year.

Last year, Finland recorded more negative electricity prices than any other bidding zone in an EU country, but also the highest hourly spot price, at 1 896 EUR/MWh. This was reached in January, when freezing temperatures hit and wind power generation was low.