Electricity prices - Finland

⚡ Finland’s Energy Market Overview

Finland is quietly leading a clean energy revolution. Between 2023 and 2025, the country has transformed its power sector into one of the most sustainable and innovative in Europe. Let’s break down what’s happening and why it matters—for households, businesses, and the planet.

🔋 Where Does Finland’s Electricity Come From?

By 2023, Finland became 98% self-sufficient in electricity production. Here’s how the power mix looks:

• Nuclear: ~42% of all electricity. The new Olkiluoto 3 reactor made a big impact.
• Hydropower: ~19%, boosted by a wet year and providing stable renewable energy.
• Wind: ~20–24%, and still growing fast—wind farms are popping up nationwide.
• Bioenergy: Around 10–15%, mostly from the forest industry.
• Solar: Small (~1%) but growing rapidly (83% growth in 2023 alone).
• Fossil fuels: Less than 8% and shrinking fast—coal is nearly gone.

✅ Over 94% of Finland’s electricity in 2023 was fossil-free.

🌱 The Role of Renewables

Finland is ahead of its climate targets, already getting 52% of electricity from renewables—a mix of wind, hydro, solar, and bioenergy.

• Wind has been the star: capacity doubled in 3 years, and offshore wind is next.
• Hydro continues to balance the grid.
• Bioenergy is strong but slowly giving way to wind and solar.
• Solar is growing fast with over 1 GW installed, despite limited winter sun.

🎯 Finland is on track for carbon neutrality by 2035. Coal-fired power will be fully banned by 2029, but is being phased out even faster in practice.

💶 How Are Electricity Prices Formed?

Finnish electricity bills are made up of three parts:

1. Energy cost – what you pay your electricity supplier. This can be fixed or dynamic.
2. Distribution fee – charged by your local grid company (you can’t choose this).
3. Taxes – a consumption tax (~2.25 c/kWh) + VAT (now 25.5%).

📊 On average, taxes and delivery fees make up about 1/3 of your total bill.

🔄 Dynamic Tariffs: Real-Time Pricing for Real People

Thanks to nationwide smart meters, Finnish homes and businesses can opt into spot-based pricing—a contract where the rate changes every hour based on the Nord Pool market.

• Benefits: Lower long-term cost, flexibility to shift usage, more transparency.
• Risks: Exposure to price spikes during peak demand.
• Who’s using it? As of 2025, about 1 in 3 Finnish households has a dynamic pricing contract.

🔌 Want to save money? Run your dishwasher or charge your EV when prices are low—like at night or during windy hours.

🏢 Who Offers Dynamic Pricing in Finland?

Here are some major providers offering hourly-priced electricity:

✅ Almost every electricity supplier in Finland now offers spot-based plans—competition is strong, and tools to track prices are plentiful.

🚀 The Future Is Green and Smart

Finland’s energy journey shows what’s possible with strong policy, smart tech, and consumer engagement. The grid is nearly fossil-free, customers can choose how and when to use power, and real-time pricing makes the system more efficient for everyone.

Whether you’re a homeowner, EV driver, or a small business, now’s the time to explore dynamic electricity contracts and start saving smarter.