Electricity is produced in Finland in a versatile way with various different energy sources and production methods. The most important energy sources for electricity generation are nuclear power, hydropower, coal, natural gas, wood fuels, and peat. The share of wind power is small, but growing.
The share of hydropower and consequently fossil fuels, mainly coal, in electricity generation varies considerably according to the amount of hydropower available on the Nordic market from Norway and Sweden.
In Finland, there are approx. 120 companies producing electricity and about 400 power plants, more than half of which are hydroelectric power plants. Finland’s electricity generation is fairly distributed compared with many other European countries. Our diverse and distributed structure of electricity generation increases the security of electricity supply.
Almost one-third of electricity is produced in combined heat and power generation, in which case the energy content of the fuel is utilised to its full potential. Up to 90% of the energy of the fuel can be converted into electricity and heat.
Finland is part of the joint Nordic electricity market in which free competition prevails.