The shutdown of Finland’s last large coal-fired power plant, the Salmisaari facility, marks a pivotal moment in the country’s energy transition. Operated by Helsinki-owned energy group Helen, the plant’s closure signals a definitive shift towards renewable energy sources and a commitment to reducing carbon emissions. This move is not just about environmental stewardship; it’s a strategic business decision that underscores the growing competitiveness of green solutions.
Helen’s CEO, Olli Sirkka, emphasized the company’s strategy to improve competitiveness through investing in the flexibility of the energy system. “We have been able to improve our competitiveness by investing in the flexibility of the energy system in line with our strategy and shifting our production to green solutions,” Sirkka stated. This shift is not just about environmental responsibility but also about economic viability. By transitioning to renewable energy sources, Helen aims to operate more profitably with lower customer prices, demonstrating that clean energy can be both sustainable and cost-effective.
The closure of Salmisaari is part of a broader trend in Finland, where wind power generation capacity has more than doubled in the past five years, now supplying nearly 25% of the country’s energy. This rapid expansion of renewable energy infrastructure is a testament to Finland’s commitment to reducing its reliance on fossil fuels. The country’s 2019 law banning the use of coal after 2029 has accelerated this transition, with coal-fired electricity now accounting for less than 1% of Finland’s energy mix.
Sirkka acknowledged that while the transition to clean energy is costly, it is a value choice that Finland and Helen have made. “It is perhaps necessary to admit that a clean transition does not come cheaply. It is indeed a value choice, and it is one that we have made both as a society and as Helen,” he told Reuters. This choice is not just about reducing carbon emissions but also about ensuring Finland’s energy security and sustainability.
The shutdown of Salmisaari will cut emissions of carbon dioxide by 50% this year compared to 2024, and will reduce Finland’s total CO2 emissions by almost 2%. This significant reduction in emissions is a clear indication of the impact that strategic investments in renewable energy can have on a country’s carbon footprint. Helen’s goal to end all thermal generation for power and heat by 2040 and reduce carbon emissions to just 5% of their 1990 level by 2030 sets a ambitious benchmark for other energy providers to follow.
The closure of Salmisaari also highlights the importance of energy flexibility and innovation. Helen plans to use electricity, waste heat, and heat pumps, along with burning biomass, to provide power and heat to its customers. This multi-faceted approach to energy production underscores the need for a diversified energy mix that can adapt to changing demands and conditions.
As Finland continues to lead the way in the transition to renewable energy, other countries can learn from its example. The shutdown of Salmisaari is not just a local event but a global statement about the future of energy. It challenges the norm that fossil fuels are necessary for economic growth and demonstrates that a clean energy future is not only possible but also profitable. This news should spark debate and inspire action in the energy sector, pushing other countries to accelerate their own transitions to renewable energy. The future of energy is not about choosing between sustainability and profitability; it’s about finding innovative ways to achieve both.
