The electricity market witnessed many highly unusual events and situations last autumn and in early 2024. The power system functioned normally throughout these situations, and the electricity supply was sufficient, thanks to the activity of electricity producers and users, as well as close cooperation and successful communication within the sector.
Less attention has been paid to the fact that the constant fluctuations in the system’s power state have become more pronounced in Finland and the other Nordic countries. They have become part of the normal operation of the power system – the new normal.
The larger fluctuations are the result of a dramatic increase in weather-dependent production and the electrification of the energy system. In Finland, the electrification of energy use has become clearly apparent in the main grid as more electric boilers are introduced for district heating and industrial heat production.
Reserves are the most important tool for managing the power system.
Power system reserves are Fingrid’s most important tool for managing the power system, and more will be needed as the system changes and evolves. In order to maintain system security, it is vital to incorporate new and existing forms of flexibility in electricity production, storage and consumption into the reserve market.
However, it should also be noted that offering flexibility in the intraday market, for example, or otherwise utilising flexibility for purposes such as managing imbalances and forecast errors or price flexibility also supports the fundamentals of managing the power system in addition to various economic opportunities.
The exceptional events that occurred in the power system last autumn and winter highlighted the critical importance of operators in the sector being active in the electricity market and working closely together to maintain the reliability and security of the power system.
Hopefully, closer cooperation and increased activity among market participants will become the new normal as the fluctuations in the power system become more pronounced.
Tuomas Rauhala
Senior Vice President, Power System Operation
Fingrid
