Oulun Energia succeeded in 2024 in responding to the challenges of the operating environment and promoting significant investments
During 2024, the volatility of electricity markets, i.e., fluctuations in electricity prices, increased, requiring stronger forecasting and flexibility in electricity production, consumption, and transmission capacity needs. The price of electricity in Finland was affected by industrial operating rates and heating needs on the demand side, and by factors such as water conditions, wind power availability, and power plant availability on the supply side. The year was also warmer than usual, except for the cold early months, which further challenged the flexibility and productivity of energy production.
“Despite the challenging market situation and growing investment needs, our financial performance remained at a good level. We were able to respond to fluctuations in the electricity market, particularly through the flexibility of our energy production and the excellent availability of our power plants,” says Arto Sutinen, CEO of Oulun Energia.
The group's revenue was €286.5 (2023: €283.9) million and operating profit was €50.8 (2023: €61.3) million. The result was weakened by rising costs, falling market prices for electricity, and increased gross investments from last year, which were now €70.4 (2023: €60.0) million. The group's most significant cost items were electricity procurement costs, power plant fuel procurement costs, and personnel costs. Power plant maintenance and upkeep costs also increased during the year.
During 2024, the electricity and district heating network faced challenges due to cold weather and external excavation damage, but delivery reliability was maintained at a reasonably good level. The average interruption time caused by fault interruptions for Oulun Energia Sähköverkko Oy was 14.8 (2023: 9.9) minutes, and the interruption time caused by planned network construction or maintenance interruptions was 2.4 (2023: 2.7) minutes per customer. District heating customers were without heat due to distribution fault interruptions for an average of 0.08 (2023: 0.13) minutes and due to planned heat distribution interruptions for an average of 2.6 (2023: 3) minutes.
Growth was sought determinedly through new projects and investments
Investments included renewable energy and the electrification of district heating. The electric boiler at the Laanila power plant was commissioned, and it was decided to build a new electric boiler at the Toppila power plant, doubling the share of district heating produced with electricity in 2025. Additionally, the construction of a 5 MW solar power park in Raahe began.
Planned investment and maintenance programs for the electricity and district heating network were also implemented. Oulun Energia also advanced new growth projects, such as planning for an industrial-scale hydrogen production plant in Oulu's Laanila and the phased construction of Finland's largest plastic recycling plant and biocomposite plant in Hyvinkää. In December 2024, the city of Kemi decided to sell 60% of Kemin Energia ja Vesi Oy's shares to Oulun Energia, enabling the advancement of green transition projects in the Perämerenkaari area after the transaction is confirmed.
“Investments are an important part of our new strategy, which focuses on seeking strong growth from the green transition. The background driver in the renewal of the energy system and improvement of the circular economy are the ambitious climate goals of the EU and Finland; we are moving from a linear economy towards a circular economy society, where the energy and circular economy system must be renewed and energy production emissions must be reduced as quickly as possible,” continues Arto Sutinen.
Sustainability efforts were advanced from many perspectives
During the year, Oulun Energia, as a critical operator for security of supply, invested in proactive safety and preparedness work, and personnel participated in several national and local preparedness exercises.
Oulun Energia aims to reduce its own carbon footprint and achieve carbon neutrality by 2030. In 2024, the share of renewable energy sources increased to 77%, and the use of peat was reduced by 58%. CO2 emissions from energy production decreased by 28%, and specific CO2 emissions of district heating dropped by 43%, to 52 g CO2/kWh.
Customers of Oulun Energia's carbon-neutral heat product Onni can influence the company's sustainability efforts. In 2024, customers chose to build a diverse wetland, which the company will implement in summer 2025. Oulun Energia's subsidiary Turveruukki Oy sold two former peat production areas in Ranua to the Finnish Natural Heritage Foundation, which will restore the areas to wetland ecosystems in the Suokeidas project together with the John Nurminen Foundation.
“I am pleased with our achievements during the year. We have a good spirit of doing and the courage to renew. From here, we can continue to build a tomorrow that future generations can be proud of.”
