Fingrid to build a transmission line between Finland and Sweden
Finland: The Ministry of Economic Affairs and Employment has granted Fingrid Oyj a permit to construct a 400 kV transmission line between Finland and Sweden.
Image source: Finnish Government
Finland: The Ministry of Economic Affairs and Employment has granted Fingrid Oyj a permit to construct a 400 kV transmission line between Finland and Sweden.
The interconnector would increase the transmission capacity between Finland and Northern Sweden from Sweden to Finland by 800 MW and from Finland to Sweden by 900 MW.
“The new interconnector between Finland and Sweden is important for ensuring the transmission of electricity and for the development of the Nordic electricity market. The connection will benefit the national economy, and electricity users by hundreds of millions of euros. Functional transmission connections are an important part of supporting the electrification of industry and society”, says Finland’s Minister of Economic Affairs Mika Lintilä.
The importance of the project has also been recognized in the EU, as it is part of the Aurora Line project, which has been selected for the list of Projects of Common Interest for Europe (PCI) in November 2017.
According to Fingrid, the key benefit of the new power transmission connection will be the levelling of electricity prices between Finland and northern Sweden, which will lead to lower prices in Finland. The new transmission connection is estimated to reduce the electricity price difference between the supply areas of Finland and northern Sweden. It is estimated that the connection will lower the price of electricity in Finland and the Baltic States by about $4 (€3)/MWh in 2025 and by about $11 (€8)/MWh in 2035.
The new transmission connection will also significantly improve the security of electricity supply. The electricity production capacity in use in Finland is significantly lower than peak electricity consumption, and Finland is dependent on imported electricity, especially during peak consumption in the winter. While the commissioning of the Olkiluoto 3 power plant unit will improve this balance in the near future, there are still concerns about the adequacy of electricity in the coming years. The electrification of society is also expected to significantly increase demand for electricity in the coming decade.
Source: Finnish Government, Ministry of Economic Affairs and Employment