Frosty Winter Strikes Threaten Electricity and Heat Production in Finland

Stock exchange electricity customers face worst-case scenario as power plants go on strike

In the midst of the freezing winter season, trade unions are organizing political strikes that primarily target electricity and heating plants. These strikes could lead to significant difficulties for electricity and heat production. While it is expected that the plants will not be shut down, a breakdown could cause concerns that in turn may affect spot prices and supply of electricity.

The energy company The Waterfall Electricity Market Expertise Peter Strandberg has expressed concern about the impact of these strikes on electricity and heat production. He stated that the market estimates that the VAT-free spot price of electricity will remain at around 55-70 euros per megawatt hour between Wednesday and Friday. However, if a breakdown occurs, it could cause concerns that in turn may affect spot prices and supply of electricity.

The electricity union has planned 24-hour strikes between February 14th and 16th which include a reserve. The strikes will occur on Wednesday at the Loviisa nuclear power plant, Thursday at the Olkiluoto nuclear power plant, and Friday at various hydropower plants. Additionally, other unions have announced strikes for Helsinki, Pietarsaari, and Kuopio.

A significant event for the electricity market is Olkiluoto 3’s upcoming maintenance break, which may result in high or stable prices if the cold weather continues. The good water situation is also a positive indication right now as it has been influenced by strong storms in December and January. This situation can serve to limit electricity price development.

CEO Jukka Leskelä has stated that delivery of district heating to customers can be ensured during the strikes but with a large number of staff potentially affected, the situation is fragile as unexpected incidents could result in plants being shut down

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