Finland has seen In 2023, electricity prices will fall significantly and average costs will return to pre-crisis levels. According to Nord Pool’s annual price data, the average wholesale electricity price was 56.5 euros per megawatt hour. This means a 64% decline from the peak of the crisis in 2022 and a return to the average price level since 2010, adjusted for inflation.
The increase in wind power capacity and the commissioning of the Olkiluoto 3 nuclear power plant have played a crucial role in achieving electricity self-sufficiency in Finland since the spring. Despite this stabilization, short-term price fluctuations are larger than before, mainly due to the increasing share of wind power in the energy mix.
Interestingly, 2023 saw a record number of hours with negative electricity bills, totaling 467 hours. The day when electricity prices were the highest, he said, was November 21, with an average daily cost of nearly 300 euros per megawatt hour. On the contrary, due to incorrect data provided by the Norwegian company, the price fell significantly after three days, dropping more than 200 euros below the zero point.
Monthly price changes throughout the year indicate a transition from the crisis to a more stable market. For example, the cost per megawatt hour in March was 74 euros, whereas before the crisis, typical prices ranged from just over 20 euros to less than 50 euros. By May the average price had fallen below 30 euros. Prices also fell in July and September, with December being the most expensive month, averaging around 76 euros per megawatt hour.
Pekka Salomar, Energy Market Director at Energiateollisuus ry, highlights major changes in the Finnish electricity system. “Wind power growth is the most important factor influencing these price changes,” Salomar explains.
In addition to these fluctuations, research conducted by Taloustutkimus estimates that the number of market-linked electricity contracts has increased significantly, doubling to around 30% of all contracts. Official figures from the Energy Agency are expected to be released next summer.
Salomar points out that the evolving electricity market rewards cautious consumers. “Electricity customers in flexible markets can benefit from these fluctuations by monitoring hourly prices and timing their consumption accordingly. This not only benefits customers; It also helps stabilize the market by leveling out the highest and lowest prices,” he added.
This transition to a more dynamic and responsive electricity market in Finland is seen as a positive step towards a more sustainable and economically viable energy future.
HT