Finland’s Meri-Pori Coal Plant Reserved for National Emergency Preparedness

Finland’s Meri-Pori Coal Plant Reserved for National Emergency Preparedness

(IN BRIEF) Fortum, a leading energy company, has signed an agreement with Finland’s National Emergency Supply Agency (NESA) to reserve the Meri-Pori coal condensing power plant for emergencies, ensuring the security of the country’s electricity supply. The agreement is in effect from March 2024 to December 2026. During the winter months, the plant will operate commercially to support the Nordic power market’s stability. Fortum will retain ownership, and Caverion Industries will handle operation and maintenance, with no impact on the plant’s 40 employees. Fortum’s long-term strategy is to transition to clean energy, with a goal to phase out all coal-based power generation by the end of 2027. The Meri-Pori plant is Finland’s last coal-fired condensing plant, with a capacity of 565 MW.

(PRESS RELEASE) ESPOO, 30-Oct-2023 — /EuropaWire/ — Fortum, a top Nordic clean energy company, and the National Emergency Supply Agency (NESA) have formalized a crucial agreement aimed at ensuring the resilience of Finland’s electricity system in times of severe disruptions and emergencies. This agreement underscores Fortum’s dedication to supporting security of supply and the country’s transition to cleaner energy sources.

Effective from March 1, 2024, until December 31, 2026, the agreement grants NESA the reserved production capacity of the Meri-Pori coal condensing power plant for deployment during critical situations, thus bolstering the security of the electricity system in Finland. Such capacity reservations are a standard precautionary measure undertaken by NESA to safeguard security of supply.

During the forthcoming winter months, the Meri-Pori power plant will be engaged in commercial operations, contributing to the stability of the Nordic power market. Importantly, Fortum will retain ownership of the plant, while Caverion Industries will assume responsibility for its operation and maintenance. This transition will have no adverse effects on the plant’s workforce, which currently consists of 40 dedicated employees.

Fortum’s strategic direction is firmly focused on delivering clean and sustainable energy solutions while spearheading decarbonization efforts, primarily within the Nordic region. To this end, Fortum has set ambitious environmental goals, including the phased elimination of all coal-based power generation by the close of 2027.

“Operating the Meri-Pori plant has not been commercially viable for several years and consequently, it has been in the Finnish peak-load reserve system during 2017-2022. However, we at Fortum are very pleased the plant could support security of supply in Finland during the energy crises last winter, when Olkiluoto 3 was just starting its commercial operations. This agreement reinforces the resilience of the Finnish energy system. Without this agreement, we would have had to take the decision to close down the plant, ” says Simon-Erik Ollus, Executive Vice President of Corporate Customers and Markets of Fortum. 

“With Meri-Pori’s production reserve, we can respond to the significant changes that have taken place around us regarding security and to prepare for large-scale hybrid threats towards our country. This agreement ensures that there will be significant electricity production capacity available in Finland in the next few years in case of the most serious crises and disturbances. The production reserve will not be used to even out price peaks,” says Janne Känkänen, Managing Director of the National Emergency Supply Agency.

“It is important that Meri-Pori plant will be operational in the market during this winter. After that, keeping the plant operational in case of exceptional situations will help with Finland’s security of energy supply,” says Director General Riku Huttunen from the Energy Department of the Ministry of Employment and the Economy. 

Situated in Tahkoluoto, Pori, the Meri-Pori plant represents Finland’s last coal-fired condensing facility, boasting a substantial power generation capacity of 565 MW since its commissioning in 1994. Historically, the plant primarily served as a standby reserve system, mainly used for testing. Actual electricity generation and market participation occurred during periods of elevated electricity prices. Notably, since December 2022, the plant has been operational for 69 days, generating approximately 515 GWh of electricity while emitting approximately 410 kilotonnes of CO2.

Financially, this agreement is not expected to have a significant impact on Fortum.

This collaboration adheres to security of supply legislation, specifically designed to prepare for situations outlined under the Emergency Powers Act, addressing conditions of emergency or imminent threats thereof.

Further information:
Fortum: Fortum News Desk: +358 40 198 2843, newsdesk@fortum.com
NESA: Managing Director Janne Känkänen, interview requests via assistant Emmi Laaksonen, +358 29 505 1017, emmi.laaksonen@nesa.fi

Fortum
Fortum is a Nordic energy company. Our purpose is to power a world where people, businesses and nature thrive together. We are one of the cleanest energy producers in Europe and our actions are guided by our ambitious environmental targets. We generate and deliver clean energy reliably and help industries to decarbonise their processes and grow. Our core operations in the Nordics comprise of efficient, CO2-free power generation as well as reliable supply of electricity and district heat to private and business customers. For our ~5 000 employees, we commit to be a safe, and inspiring workplace. Fortum’s share is listed on Nasdaq Helsinki. fortum.com

NESA
The National Emergency Supply Agency (NESA) is an organisation operating under the Ministry of Economic Affairs and Employment. It is tasked with planning and operative measures related to developing and maintaining security of supply. In cooperation with other authorities and the private sector, the NESA ensures that the continuity of the critical functions of Finnish society can be safeguarded during crises and disruptions.

SOURCE: Fortum Corporation