Energy security is a matter of investment and competitiveness

Energy security is not simply a question of price levels, however. It is a matter of investment, competitiveness and the overall functioning of the economy.

Russia’s war of aggression and the systematic destruction of energy infrastructure in Ukraine have shown that energy is a strategic instrument. More than 60 per cent of Ukraine’s electricity generation capacity has been destroyed during the war – and yet the system has held up, largely thanks to historical redundancy.

The lesson is clear: crises cannot be managed by reacting to them as they unfold. They are managed by preparing for them in advance.

The Finnish electricity system faces a structural challenge. As the share of renewable energy in electricity production increases, generation is increasingly concentrated in Ostrobothnia and Lapland. Electricity consumption, however, does not follow suit in a linear fashion, but will continue to be largely concentrated in southern Finland. This makes transmission networks a critical element of the entire system. The pressure to invest in transmission infrastructure is further intensified by the explosive growth in electricity storage projects as well as the broader electrification of industry and district heating networks. At the same time, the predictability of obtaining a grid connection is an essential prerequisite for attracting the industrial investments that Finland needs.

Resilience does not stem from a single solution. It requires a diverse electricity mix, robust transmission networks, storage capacity, and the protection of critical infrastructure against both physical and cyber threats.

Long-term infrastructure and energy investments require predictable regulation.

When a company makes an investment decision worth hundreds of millions or billions of euros, it needs to know what the rules are – and that those rules will not change midway.

Erratic regulatory changes translate directly into uncertainty in investment decisions. Energy security requires a regulatory framework that is investment-friendly, aligned with EU-level requirements, and flexible enough to adapt to changing circumstances.

Energy security is an integral part of the stability of Finland’s investment environment. Sufficient energy availability, functioning infrastructure and a clear set of rules form the foundation upon which industrial investments, data centre projects and green transition initiatives are built. Advancing these is in the interest of Finnish society as a whole.

Energy security is not an achieved state. It is an ongoing process that requires investment, cooperation and long-term commitment. The question is not whether we can hold our own against others, but whether we are building an operating environment in which growth and the green transition can be realised even in an uncertain world.