Review by the President & CEO
Fingrid is Finland’s transmission system operator
2017 was a busy year for Fingrid. We did well in achieving the operational and financial targets set for 2017. We developed the grid for the power system of the future. The grid’s transmission capacity was in efficient use, and transmission reliability remained at an excellent level. We raised the reliability of direct current (DC) connections that are important for the electricity market to an all-time high. Financially, Fingrid is in good shape, despite significant capital expenditure and operational development in recent years. The result development has been strong. The consolidated turnover amounted to EUR 672.0 (586.1) million and profit for the financial period was EUR 130.8 (138.7) million. Our estimates indicate that the result according to the regulatory model that governs grid operations will show a slight deficit for 2017. Towards the end of the year, we decided to keep the transmission grid tariffs unchanged for 2018.
Preparing for the future now
At Fingrid, we continuously think about the future and the impacts it will have on the operations of a transmission system operator. For us, the main drivers of the future will be the energy system’s transition to new production methods and technologies, and the changes taking place in society. The electrification of society is an efficient way to put an end to the considerable carbon dioxide emissions caused by the energy system. A reliable supply of electricity is a necessity for a society that can no longer function without it. As a transmission system operator, Fingrid has a central role in powering Finland. Preparing for changes in the industry and for future investments demands diligent work. Decisions made today will continue to have an impact decades from now. Society’s efforts to achieve ever-greater equality and openness is also nicely aligned with our operations, which have for a long time now been based on these factors. Corporate Spirit’s People Power and Great Place to Work workplace atmosphere surveys carried out in 2017 prove that Fingrid is one of the best places to work in Finland.
A different kind of TSO
Fingrid stands apart from other transmission system operators in its customer focus. We work for the benefit of customers and society. Every Fingrid employee must be committed to hearing the customer’s voice. Based on feedback received in 2017, our customers trust us. World-class efficiency, based on an ability to combine our core competence with the best experts in every industry, is another characteristic of our work. Fingrid’s customer focus, efficiency and innovative approach have also garnered attention around the world. The company was ranked among the top three transmission grid brands at the CHARGE energy conference in Iceland in October 2017. This achievement would not have been possible without our smooth co-operation with customers and service providers.
In an increasingly globalised operating environment, the sustainability of a TSO’s business operations is assuming an increasingly significant role. Our commitment to the UN’s Global Compact initiative is a testimony to how important sustainability and transparency are to Fingrid. We implement our strategy in strict compliance with the principles of corporate sustainability.
We do important development work on behalf of the power system’s transmission reliability and the electricity markets. The modernisation and digitalisation of the power system continuously leads to new innovations. Without significant technological breakthroughs, the transition to a new, clean power system is not possible. It is important that the new technologies are effectively integrated into the power system. The market’s “invisible hand” is the best partner for new technologies: competition and the markets effectively steer new investments, while price guides the use of new technology so that it optimally supports balance in the power system. Well-functioning markets fairly reward market players and encourage them to find new solutions. It has been a joy to see that demand-side management in electricity consumption is gradually finding its place in the electricity markets. We saw some good examples of this in 2017. Similar development would also be welcome in battery technology. The hope is that the market attracts new investments, also in electricity production.
In terms of promoting the electricity markets, we are pro-integration. In that respect, we do have concerns about the future of Nordic co-operation. Recently, there have been clear signs of politics instead of traditional, trust-based co-operation.
We are seeking new solutions on a broad front by collaborating with innovative companies. We are focused on our core mission and are not contemplating finding new business. Fingrid’s mission is to support and promote Finnish companies by carrying out joint development work with them and by serving as a platform for growth for new businesses. This enables us to support Finland’s success in the best possible way and to realise our mission as a transmission system operator for all Finns.