Capital expenditure

The company’s total capital expenditure in 2017 amounted to EUR 111.1 (146.7) million. This included a total of EUR 91.1 (135.8) million invested in the transmission grid and EUR 14.2 (3.3) million for reserve power. ICT investments amounted to EUR 5.7 (7.5) million. A total of EUR 2.6 (2.4) million was used for R&D projects during the year under review. The company’s capital expenditure will be around EUR 100 million in the next few years. 

By international standards, grid asset management at Fingrid is world-class. In spring, the company once again placed at the top in the International Transmission Asset Management Study (ITAMS).

A total of 22 substation projects and 16 power line projects were under way in 2017. The biggest current projects are related to the modernisation of the aging ‘Iron Lady’ transmission line, connecting large-scale power plants to the grid, and maintaining system security for major cities. 

  • The modernisation of the oldest part of the national grid, from Forssa to Lieto and Yllikkälä to Koria, proceeded according to plan. The project will be completed in early 2018.
  • A 400- + 110-kilovolt powerline will be constructed between the Hikiä substation located in Hausjärvi and the new Orimattila substation to be constructed in Pennala, Orimattila. The power line work was started in late 2017 and it will be completed by the end of 2019.
  • Olkiluoto’s 400-kilovolt switching station, which is outdated and has insufficient system security, will be modernised in Eurajoki. The project will be completed during 2019. The modernisation of Inkoo’s 400-kilovolt substation has also been started, and is due for completion in 2019.
  • Construction work on the 26-kilometre Vihtavuori-Koivisto power line between Laukaa’s Vihtavuori and Äänekoski’s Koivisto substations progressed and will be completed in early 2018.
  • The expansion of the 400-kilovolt switching station of the Länsisalmi substation located in Vantaa in the Helsinki region aims to secure electricity supply in the capital city region. The project was completed at the end of 2017.
  • A power transformer supplied to Fingrid was taken into use at the Espoo substation. The transformer will ensure sufficient transmission capacity in the Espoo region well into the future and ease grid operating situations in Southern Finland.
  • The implementation within the upgrading project on the Huutokoski reserve power plant was completed in late 2017. The project consisted of replacing outdated systems and improving the plant’s environmental safety.

Finland’s electricity consumption is focussed on the south, where electricity production is insufficient with regard to consumption. In future, increasing amounts of electricity will be produced in northern Finland and northern Sweden, and this electricity must be transmitted to the south to be used by industry and consumers. This requires strong transmission connections between the north and the south. Fingrid is preparing three transmission connections to promote the functioning of the electricity markets: 

  • Planning of the ‘Forest Line’ (400 kV) between Oulu and Petäjävesi has begun, and construction work will be started in a couple of years. The connection will be roughly 300 kilometres long and will have a transmission capacity of approximately 700 megawatts. It is expected to be completed in 2022.
  • A third 400-kilovolt alternating-current link will be built between Finland and Sweden at the latest in 2025. This is a joint project between Fingrid and the Swedish transmission system operator Svenska Kraftnät. The connection will increase the transmission capacity between the two countries by 800 megawatts. The connection has been included in the EU’s list of energy infrastructure priority projects and the European Commission has granted it PCI (Projects of Common Interest) status.
  • The Finnish and Swedish transmission system operators have started planning the new Kvarken direct-current link. According to the plans, the roughly 800-megawatt connection will be built by the end of the 2020s. The Kvarken connection will replace the Fenno-Skan 1 direct-current connection, which is reaching the end of its service life. 

In June, Fingrid published its grid development plan for 2017–2027. The plan is based on the regional grid plans drawn up together with customers. The plan also takes into account the Baltic Sea region’s development plan and the ten-year grid plan covering all of Europe. 

In 2017, Fingrid carried out a competitive tender process for the basic maintenance on substations and power lines, as well as basic and special maintenance on secondary equipment. The new three-year contractual periods started in the beginning of 2018 and will expire at the end of 2020. 

During the period under review, the company’s personnel had two lost-time accidents (0). Suppliers had 9 (12) recordable incidents, one of which was fatal and eight were lost-time accidents. Among the lost-time accidents, two led to an absence of more than 30 days from work. The suppliers’ and Fingrid’s combined accident frequency rate remained unchanged, at 8 (8). 

Corporate safety is a key part of Fingrid’s operations, steered by the company’s safety policy. The occupational safety management of Fingrid’s asset management function and suppliers is steered by the safety management system and contractual terms concerning safety. These were updated in 2017 as part of the company’s continuous development efforts. In addition to the above, Fingrid has drawn up an extensive new development programme to prevent similar accidents from happening in the future.