BLOG: Battery Day 2.10.2025, Tiina Karppinen
The energy market is undergoing a transformation, and one of the key observations is that Finland holds significant potential as an investment destination. Seizing this opportunity requires both expertise and courage, and one of the most important themes is finding balance between investments in production and consumption.
Janne Peljo, Lead Expert at the Confederation of Finnish Industries (EK), presented EK’s monitoring data showing that over €300 billion worth of green transition projects are currently underway in Finland. The majority of these investments focus on energy production, but going forward, more investments are needed to support consumption. As Liisa Sinisammal, Reserve Market Specialist at Lumme Energia, fittingly summarized: this is a classic chicken or the egg dilemma—without consumption, there is no production, and without production, there is no consumption.
Finland as a Promising Investment Destination
Finland has several competitive advantages that make it an appealing location for investments. In 2024, Finland had the third-lowest electricity prices in Europe, and 95% of its electricity was emission-free. At the same time, bottlenecks in electricity transmission are significantly smaller than in many competing countries. This combination creates excellent conditions for investments in hydrogen economy and other electricity-intensive industries.
More Consumption Is Needed
Finland is a pioneer in green electricity production and its optimization. However, for billion-euro production investments to materialize, more consumption is needed. It is therefore surprising that public discourse still includes the notion that Finland does not need foreign players or data centers to utilize its low-cost electricity. In reality, electricity is a consumer product whose value is realized only through use. The national economy benefits only when electricity consumption drives growth in industry.
Since the beginning of 2025, 226 green transition investment projects have been initiated, with a total value of €23.5 billion. These investments would have a significant impact on Finland’s economy and strengthen our position as a leader in green energy. The key question now is whether Finland can attract enough electricity-consuming investments and high value-added industries. Both international players and domestic investments are needed and their realization can be accelerated through tax incentives, permitting reforms, and direct support.
Flexibility Elements Supporting the Energy Transition
Progress in the energy transition also requires flexibility elements that support the electricity grid. The unpredictability of renewable energy production, combined with the growing share of renewables, has increased the volatility of imbalance prices. The rise in renewable electricity production also highlights the need for changes in market structures: the transition to a 15-minute mFRR energy market and 15-minute imbalance pricing has already been implemented.
When it comes to increasing flexibility, battery storage is one of the most effective solutions. Today, however, batteries increasingly serve as service platforms. As Enico’s CEO Marko Lähteenmäki stated: the battery itself is cold technology, and the real intelligence and value are created through data and services. These connect the battery to the customer’s business and provide added value that extends far beyond reserve market revenue. In just five years, batteries have become versatile players in the electricity system, with multiple use cases.
In the future, physical battery storage systems will be a commodity, but its customer value will stem from high utilization rates built on services, lifecycle thinking, and locally available 24/7 support. Battery storage generates value for its owners only if it operates as efficiently as possible—and that is where the full potential of the green transition lies.
