Finland went from energy shortage to negative power prices. Here’s how.

Finland’s Electricity Prices Plummet into Negative Territory After Launch of New Nuclear Power Plant

In a remarkable turn of events, electricity prices in Finland have plummeted into negative territory after the launch of a new nuclear power plant last month. This development comes after officials in the Nordic nation were raising the alarm over widespread energy shortages, a reality induced by the Russian invasion of Ukraine.

The Olkiluoto Nuclear Power Plant, which launched a new reactor last month, now provides nearly one-third of the nation’s power. The electricity from the plant is sufficient to power 5.2 million apartments or charge 3.6 million electric cars, marking a significant amount of power production for Finland, which has 5.5 million residents.

Abundant Power, Low Prices

Utility companies are now discussing mechanisms to reduce production as power becomes so abundant that prices venture into negative territory. “Production is high, consumption is low, and now we are in a situation where it is not easy to adjust production,” says Fingrid CEO Jukka Ruusunen. “Last winter, the only thing people could talk about was where to get more electricity. Now we are thinking hard about how to limit production. We have gone from one extreme to another.”

Average spot electricity prices in Finland declined from $264 in December to $65 in April, according to a report from the National News. Operators in Finland and the surrounding areas are now monitoring the situation. If hydropower can’t be regulated, then it will probably be nuclear power next. Production that is not profitable at these prices is usually removed from the market. Now there is enough electricity, and it is almost emission-free. So you can feel good about using electricity.

Nuclear Power and Emission-Free Electricity

Finland and other nations in the European Union abide by the goal of becoming “a climate-neutral society” by 2050 in accordance with the European Green Deal and the Paris Climate Agreement. Despite the success of nuclear power in promoting emission-free electricity, many countries are shuttering the facilities over safety concerns. Germany closed the nation’s three remaining nuclear energy plants last month, marking an end to the economic bellwether’s use of the power source even as authorities resumed coal production due to energy shortages.

Other nations, such as the Netherlands and Poland, are slated to expand their nuclear systems, while Belgium is delaying a previously enacted phaseout. Some countries, on the other hand, proceeded with shutdowns of nuclear facilities despite catastrophic increases in energy prices last year: Switzerland slowed production at one nuclear power plant to avoid raising nearby river temperatures and thereby protect local fish populations.

European Commission President’s Proposal

European Commission President Ursula von der Leyen has proposed mechanisms to reduce “overall electricity consumption,” an initiative funded by the redistribution of profits from oil and natural gas companies.

Despite the ongoing debate over the safety and efficacy of nuclear power, Finland’s recent success in promoting emission-free electricity through nuclear power is a significant milestone in the country’s journey towards becoming a climate-neutral society.