Investment in the region and revenue for the City of Oulu

In our continuous development of efficient, affordable and carbon-neutral energy production, Oulun Energia invests millions of euros every year in the Oulu region. In 2023, we invested  EUR 60 million, in particular in the renovation of power plants and maintenance and expansion of the heating and electricity network.

Each year, we generate significant sums of money for the City of Oulu in dividends, payments for reserve for invested non-restricted equity, loan repayments and loan interest. In 2023, these amounted to a total of EUR 23.5 million – equivalent to the combined salaries for more than 400 nurses for a year.

In addition to more than 250 employees of its own, Oulun Energia contributes indirectly to employment through the services it purchases, in areas such as information and communications technology, consultancy, legal services, cleaning, and security services.

Supporting sports clubs and culture

The Oulun Energia group also sponsors local sports clubs and culture. The main recipients of our grants for sport and culture in 2023 were Oulun Kärpät, AC Oulu, the Qstock annual rock festival, the Oulun Luistinseura multi-sports club, the Oulun Pyrintö multi-sport club and the Rankat Ankat floorball club. 

Collaborative research for the environment

Oulun Energia is one of the largest organisations in the Oulu region, and works closely with research institutes, municipalities and other companies in research and education. 

We continuously monitor and improve the impact of our operations on the environment, especially on waterways. 

School partnerships and summer jobs

Oulun Energia collaborates extensively with Oulu University of Applied Sciences, OSAO vocational college, and the University of Oulu. Many of our experts contribute to the planning and implementation of courses, and in return we offer students the opportunity to be involved in developing Oulun Energia’s operations.

We also offer positions every year for students working on their theses, and the thesis projects. We also employ many students during the summer in particular. Our aim is to offer a wide range of job opportunities for students from different sectors.

Reliable electricity supply is our key mission

As an energy company, it is essential for Oulun Energia to ensure businesses for which a reliable electricity supply is critical can confidently operate in Oulu and the surrounding region.

Oulun Energia Sähköverkko Oy has managed to maintain a high level of security of electricity supply for many years through systematic investment and maintenance programmes.

Proactive maintenance of the electricity network is carried out on a regular and planned basis, and the main way to prevent weather-related disruptions is by relocating the electricity supply cabling underground. We also aim to minimise the harm that could result from disruptions to electricity supply through fast and efficient repairs. In line with our target, the proportion of terrestrial, i.e. underground cabling has increased by about one percentage point per year, and 91 % of the network was terrestrially wired in 2023.

Forecasting electricity production is a responsible strategy

In addition to security of supply, the price of energy indirectly affects the vitality of the region, and Oulun Energia does its part to keep energy prices reasonable.

For electricity transmission, network service prices (formerly transmission prices) are strictly regulated by law, and legislation that came into force at the start of 2022 has made regulation in this area even more stringent. The price of electricity, by contrast, is determined by the market and is affected not only by production factors but also by the relationship between supply and demand. One of Oulun Energia’s tasks is to contribute to maintaining a balance between production and demand. As part of acting responsibly and ensuring continually sustainable operations, it is important to generate electricity proactively and keep all the production plant and other equipment in good working order so as to prevent unexpected disruptions.

Choice of heat sources matters

When it comes to heating, we can also help to control the price of energy through our choices and actions. The choice of energy source plays an important role, as the prices of different fuels depend on factors such as taxation and other regulations. Whereas fuel wood costs about twice as much as recycled fuel, peat costs five times as much and oil ten times as much. And in addition to price, the security of supply and technical suitability of the various sources of fuel used by the power plant must be taken into account.

For Oulun Energia, the price of wood chips, an important source of heat, is determined to a large extent by labour costs in production. These account for more than 80% of the price. Oulun Energia can exert some control over the productivity of the supply chain by various means, for example by optimising the fuel reception process and transportation. In addition, we are continually improving the processes in our power plants to make energy production as efficient as possible. There is also a significant impact from the losses that occur in the process of distributing heating to customers through a district heating network of around 900 kilometres. Investing in reducing heat loss also reduces the amount of fuel needed to produce heat, thereby lowering production costs.

Customers can also do their part to promote efficient energy use. For instance, waste heat from the premises of the Osuuskauppa Arina company is redirected into the district heating network. Oulun Energia is constantly working to promote the use of surplus heat.

Properties that require a lot of cooling, such as supermarkets, generate significant amounts of surplus heat that could be channelled into the district heating network.

Ensuring security of supply

Ensuring long-term security of supply is one of Oulun Energia’s most important tasks. Our fuel procurement continues to be domestically focused, and 90% of the fuel we use comes from Finland. The imported fuel we use is procured as locally as possible, i.e. from within the Baltic Sea region. For global political reasons, we are also exploring other procurement options.

The main pillars of Oulun Energia’s fuel supply are fuel wood from forestry by-products, and waste-derived recycled fuel. The supply of the latter is independent of the cyclical nature of the forest industry. In heat production, peat also plays a role in ensuring Oulun Energia’s security of supply until the end of 2025.

The forest industry in northern Finland is growing, and a number of new production plants will come into operation from 2025. This will also bring about an increase in the volume of industrial side streams, which will further improve our security of supply following our discontinuation of the use of peat.