Insights into Electricity Price Trends and Factors Influencing Pricing in Finland
Explore electricity price statistics in Finland for 2023, including comparisons to the Consumer Price Index and wholesale prices in Europe. Discover factors influencing electricity prices such as supply, demand, cross-border impacts, and more. Gain insights into the price differentials between regions and the impact of transmission connections on pricing.
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Presentation Transcript
Electricity price statistics in 2023 Finnish Energy 4.1.2024
The development of annual prices in Finland relative to the Consumer price Index The inflation-adjusted wholesale electricity price in Finland from 2010 to 2023 EUR/MWh 180 164 160 140 120 100 82 74 80 62 56 55 60 51 50 45 43 40 39 36 40 33 20 Data: Nord Pool ja Tilastokeskus 2020 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2021 2022 2023 Consumer Price Index, 2010 = 100 Data: Statistics Finland & Nord Pool 2 Electricity price statictics in 2023 4.6.2025
Finland has the second lowest electricity prices in Europe Electricity wholesale prices in Europe in year 2023 EUR/MWh 140 120 100 80 60 40 20 0 * = Capital's price area Data: Energy-Charts.info, Entso-e & Nord Pool 3 Electricity price statictics in 2023 4.6.2025
Price gap to Sweden in year 2023 At the end of August, Olkiluoto 2 and Loviisa 2 were out of operation, and there were disruptions in transmission connections. Simultaneously, there was a prolonged period with little wind, and not all CHP power plants were yet in operation. Price gap to Sweden EUR/MWh 90 80 70 60 50 40 30 20 10 0 January February March April May June July August September October November December Finland Stockholm (SE3) 4 Electricity price statictics in 2023 4.6.2025
Price differentials between regions have increased, with Finald following Stockholm The nominal values of wholesale electricity prices in the Finnish and Swedish (SE1 & SE3) price areas annually The Aurora 1 transmission connection, scheduled to be completedin 2025, is expectedto reduce the price difference between Finland and Northern Sweden. EUR/MWh 180 Northern Sweden (SE1) Stockholm (SE3) Finland 160 140 120 100 80 60 40 20 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 SE1 & SE3 between years from 2003 to 2011 = The price of Sweden before splitting the country into four bidding zones Data: Nord Pool 5 Electricity price statictics in 2023 4.6.2025
Factors influencing the electricity price Supply Demand Cross-border impacts Variable costs of generation units (e.g. fuel costs and CO2 prices) Status of water reservoirs Wind/solar conditions Weather conditions (Temperature, seasonality ) Time of day or week (day vs. night & weekday vs. weekend) Industrial activity Available transmission connections Maintenance and incidents in transmission connections Demand/supply in neighboring countries 6 Electricity price statictics in 2023 4.6.2025
Alternative import channels have been found for Russian gas supply and price pressures have eased 4. record high. Entering the winter, gas reserves are at a Due to the mild winter of 2022- 2023, the demand for gas was lower than expected, allowing for high filling rates of gas reserves throughout the year. In addition, alternative import channels have been found for Russian gas (e.g., LNG). Natural gas storage levels in Europe 3. % 100 90 80 70 During the year 2022 gas reserves were filled quickly, so that there would be enough gas throughout the winter heating season. 60 2. 50 40 1. lowest as Russia prepared for war, including resticting gas exports to Europe 30 In 2021 Europe s gas reservoirs were at their 20 10 0 Historical variation range 2023 2022 2021 Data: AGSI 7 Electricity price statictics in 2023 4.6.2025
Price development of gas Gas (TTF) price development in 2021 to 2023 EUR/MWh 400 Europe s gas storages began to fill in summer 2022 for the upcoming winter increased demand drove the price higher. 350 The price of gas increased when Russia attacked to Ukraine. 300 250 200 150 100 50 0 1/21 4/21 7/21 10/21 1/22 4/22 7/22 10/22 1/23 4/23 7/23 10/23 Data: Trading Economics 8 Electricity price statictics in 2023 4.6.2025
The connection of wind power to the price EUR/MW October's wind power production and electricity spot price MW The amount of wind power production is a significant individual factor influencing the price in Finland 5000 350 4500 300 4000 Other factors continue to have a significant impact on the price as well, such as electricity demand, temperature, status of water reservoirs, transmission connections and maintenance and incidents in nuclear and thermal power plants. 250 3500 200 3000 2500 150 2000 100 1500 50 1000 0 500 0 -50 Wind power production Spot-price FI Data: Energiateollisuus & Entso-e 9 Electricity price statictics in 2023 4.6.2025
Hydro reservoir balance in the Nordics % of capacity of water reservoirs 100 90 80 70 60 50 40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Variation range of 2010 to 2019 Median Week 2022 2023 10 Electricity price statictics in 2023 4.6.2025
The development of the nominal wholesale electricity price Wholesale electricity price's nominal value in Finland monthly Electricity price EUR/MWh 300 Average 2008-2020 250 200 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Data: Nord Pool 11 Electricity price statictics in 2023 4.6.2025
Weekly prices of electricity in 2021 to 2023 Wholesale electricity prices in Finland weekly EUR/MWh 450 400 350 300 250 200 150 100 50 0 2021 2022 2023 Data: Nord Pool 12 Electricity price statictics in 2023 4.6.2025
The amount of hours with negative price has growed sharply The number of negative electricity prices has significantly increased due to the rapid growth of wind power. Low and negative electricity prices imcentivize investments in flexible demand, such as electric boilers connected to district heating networks, with electricity capacity soon exceeding 1 GW. The number of negative electricity prices in Finland 467 27 9 5 0 2019 2020 2021 2022 2023 Data: Entso-e & ACER 13 Electricity price statictics in 2023 4.6.2025
Electricity price fluctuations have increased 2023 average: 56,5 EUR/MWh 2018 average: 46,8 EUR/MWh EUR/MWh Average nominal daily electricity wholesale prices in Finland 300 250 200 150 100 50 0 As a result of the erroneous bid, the price of electricity collapsed well on the negative -50 -100 January February March April May June July August September October November December 2023 2018 Data: Entso-e 14 Electricity price statictics in 2023 4.6.2025
Consumers electricity bills have significantly decreased over the past year c/kWh The development of electricity bill Household customer, annual cosmuption 5,000 kWh to 15,000 kWh The shares of different components in the electricity bill for a household customer with an annual consumption of 5,000 kWh to 15,000 kWh 30 25 Taxes (electricity tax and VAT) 31% 20 15 10 5 Electricity energy (tax free) 40% Network service fee (tax free) 29% 0 Data: Statistics Finland Electricity energy (tax free) Network service fee (tax free) Taxes (electricity tax and VAT) Data: Statistics Finland 15 Electricity price statictics in 2023 4.6.2025
Electricity price overlook: Prices in Finland and Sweden are significantly more favorable than in Central Europe The actual price of electricity and futures on 2nd of January, 2024 EUR/MWh 500 Futures 450 400 350 300 250 200 150 100 50 0 1/20 4/20 7/20 10/20 1/21 4/21 7/21 10/21 1/22 4/22 Finland 7/22 10/22 1/23 4/23 7/23 10/23 1/24 4/24 7/24 10/24 1/25 4/25 7/25 10/25 1/26 4/26 7/26 10/26 Stockholm Germany Data: Nord Pool, Nasdaq Commodities & EEX 16 Electricity price statictics in 2023 4.6.2025
