HELSINKI, July 31 (Xinhua) -- July was marked by record-low prices on the electricity market in Finland, with customer prices dropping to their lowest levels since the early 2010s.
According to Finnish newspaper Helsingin Sanomat on Wednesday, this July will be remembered as one of the cheapest months for electricity in Finland in almost two decades. The last time prices were lower, adjusted for inflation, was in July 2000. Back then, market-priced electricity was not available to consumers, with market pricing only being introduced in the following decade.
Throughout July, Finland had the lowest untaxed electricity prices in Europe, even cheaper than in northern Sweden and Norway. Such a situation is rare, noted Jukka Leskela, chief executive officer of the Energy Industry Association.
The primary reason for the low prices is a seasonal drop in electricity consumption combined with increased production. During the summer, less electricity is needed for heating, and many industries have maintenance shutdowns. Despite this reduced demand, Finland has produced a surplus of electricity, especially following the completion of the Olkiluoto 3 nuclear power plant. This summer also saw high production of hydroelectric power due to abundant water in reservoirs.
In addition, a significant increase in solar power generation has also kept prices low during the day across Europe.
Despite the current low prices, Leskela warned that price fluctuations are inevitable and must be anticipated. Upcoming maintenance at the Loviisa nuclear power plant may cause outages and higher electricity prices. As demand increases after summer, any reduction in supply will further impact prices.
