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Eastern Finland Energy Forum 2025: Finland’s Electricity Grid Faces Historic Expansion to Power the Green Transition
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Business Joensuu news
Caruna announced yesterday that it is planning a €12 million investment to double network capacity in Joensuu region, enabling €1 billion growth investments.
Key infrastructure developments include:
- Upgrading the radial 110 kV network into a modern ring structure, enhancing reliability and redundancy
- Renewal of the Rantakylä substation and the Joensuu switching station
- Construction of approximately 20 km of new transmission lines and two new substations
This grid reinforcement will also enable the scale-up of green hydrogen and Power-to-X projects in the region. The upcoming 40 MW green methanol plant in Joensuu marks the start of the hydrogen transition in Eastern Finland.
With Caruna’s strong 110 kV distribution backbone and Fingrid’s 400 kV transmission grid, the region will soon have the electrical infrastructure required to support large-scale industrial decarbonization projects. This development strengthens Joensuu’s position as an attractive location for domestic and international investments in clean energy and sustainable industry.
Fingrid: Scaling the Backbone of Finland’s Energy System
Jussi Jyrinsalo, Senior Vice President at Fingrid, outlined the transmission system operator’s ambitious investment roadmap. “We are building 5,000 to 6,000 kilometers of new power lines over the next decade—more than any other TSO in Europe,” Jyrinsalo stated. “But we cannot build a copper plate over Finland. We must prioritize based on real projects and ensure flexibility in consumption to avoid bottlenecks.”
Fingrid’s recent €1.5 billion investment program has already added 500 km of transmission lines, with 900 km currently under construction. The expansion focuses on reinforcing capacity from the wind-rich western coast to the consumption-heavy southern regions. Eastern Finland remains a strategic target, with environmental assessments underway for a 400 kV line from Uimaharju to Kontiolahti.
Caruna: Distribution Networks Must Catch Up
Kosti Rautiainen, Head of Network Planning at Caruna, emphasized the critical role of distribution networks in enabling the energy transition. “Finland is missing a clear view of what the 2030s and 2040s demand and capacity should be,” Rautiainen said. “Capacity tariffs and demand flexibility alone won’t solve the equation—we need targeted investments, especially in cities like Joensuu, Tampere, and Turku.”
Caruna highlighted that peak capacity demand is expected to triple by 2040, driven by electrification of heating, transport, and industrial processes. The company estimates Finland needs €1.2 billion annually in DSO investments—currently only €600–700 million is being spent. Without synchronized development between transmission and distribution, grid congestion will worsen, as seen in parts of Southern Finland already under capacity restrictions.
OX2: Private Investments Driving Grid Innovation
Heikki Vihava, Country Manager at OX2, showcased how private sector initiatives are accelerating grid development. “We were the first to build 400 kV overhead lines in Finland, which Fingrid later acquired,” Vihava noted. “This kind of collaboration is essential. We need to make grid development a habit if we want to meet the pace of the green transition.”
OX2’s projects include over 1 GW of renewable energy under construction, with half located in Finland. The €650 million Lestijärvi wind park—Finland’s largest—is a prime example of how grid connectivity can be enabled through developer-led infrastructure. OX2’s partnerships with global tech giants like Amazon and Google underscore the growing importance of power purchase agreements (PPAs) in financing grid-connected renewable assets.
A Call for Coordinated Action
The forum concluded with a call for stronger coordination between transmission operators, distribution companies, developers, and policymakers. Hydrogen production, data centers, and electrified heating are expected to drive exponential growth in electricity demand. Fingrid’s long-term scenario suggests Finland could produce 10% of the EU’s electrolysis hydrogen by 2040, attracting €200 billion in investments.
Eastern Finland, with its untapped wind potential and strategic location, stands to benefit—if grid infrastructure can be built in time.
The Eastern Finland Energy Forum 2025, held in English for the first time, gathered over 200 participants from across the energy sector, including grid operators, developers, municipalities, and industry leaders. The forum served as a platform for strategic dialogue on the future of Finland’s electricity infrastructure, with a special focus on Eastern Finland’s role in the national energy transition. The event took place in Joensuu October 21-22, 2025.
Media Contact:
Rami Alfasfos, Development Manager, Hydrogen Economy, Business Joensuu
Rami.alfasfos@businessjoensuu.fi, +358 50 573 1477
