Business Review 2017

Previous year’s warmer winter months affected energy demand

The warmer winter months of the previous year had an effect on energy demand in 2017. Energy consumption dropped in Turku by 1.2% compared to the previous year. Turku Energia’s turnover and operating result remained on the same level as the previous year. The reliability of electricity and heat supply was at record levels. The Naantali multiple-fuel power station was completed in December 2017 and significantly increases the quantities of renewable energy sources in the electricity and heat produced by Turku Energia. It is predicted that by 2018 we will already have achieved the goal set for 2020 that over 50% of the energy sold would be produced from renewable energy sources.

Previous year’s warmer winter reduces the amount of district heat sold

Sales of district heat amounted to 1927 gigawatt hours (1970 GWh). The warmer winter of the previous year had an effect on the amount of heat sold. Most of the district heat was sourced from the Naantali power station belonging to Turun Seudun Energiantuotanto Oy, the Oriketo bioheat plant, and the Kakola heat pumps. A total of 34 per cent of the heat generated (28 %) derived from renewable sources.

The reliability of heating supply remained at an excellent level. Interruptions to district heating delivery was an average of 43 minutes per customer (2016: 1h 18 min).

In 2017, there were two projects underway which were important for district heat production and reliability of supply. Naantali’s new multiple-fuel power station was completed in December 2017 and will raise the proportion of renewable energy in district heat production to over 50% during 2018. In Artukainen, the construction of a new steam plant got under way. The steam plant uses forest processed chips as its fuel and, when ready, will replace the use of oil as a fuel. The plant will produce steam for five significant industrial companies in the Artukainen area.

During the year, changes to the pricing structure of district heat were prepared. This new pricing structure came into force in March 2018. The pricing structure for district heat was updated to correspond to the developing industrial structure and the actual production costs. The goal of seasonal pricing is also to encourage customers to improve energy efficiency and pay attention to their energy consumption peak periods.

The price of district heat were reviewed twice during the year, primarily due to the changes that occurred in the world market price of coal.

Electricity transmission fees continue to be among the cheapest in Finland

A total of 1,497 GWh (1,466 GWh) of electricity was transferred to customers in our own network area, and 519 GWh (498 GWh) was transferred to other system operators. In Turku, construction of new buildings picked up, but electricity consumption nevertheless dropped by 1.2% compared to the previous year owing to the warmer weather. The amount of electricity transferred to other system operators, however, grew by 4.4% primarily because of the industrial upturn in the Caruna network area. The total electricity transferred in the electricity network owned by Turku Energia Sähköverkot Oy therefore grew overall by 0.2%.

By the end of the year, the number of electricity consumption points was 83,121 (80,778), signifying an increase of 2.9%. In Turku there are also around 43,500 electricity consumption points in collective purchase buildings which are classed as back users, which are not directly customers of Turku Energia Sähköverkot Oy. The total number of connections was 19,761, of which 208 were new connections.

The quality of electrical distribution remained at an excellent level. At the end of the year, the average time that the service was cut off was 8 minutes 54 seconds per customer (9 min 14 s).

Transmission prices were raised once last year. The increase resulted from the decision by Fingrid to increase its main grid and regional network fees from the beginning of 2017. Turku Energia Sähköverkot Oy’s prices continue to be among the lowest in Finland.

The most significant network alteration work was carried out as part of the Medisiina expansion work (the new construction work being undertaken by Suomen Yliopistokiinteistöt Oy in Kupittaa), in which a 110 kV cable and eight medium-voltage cables were moved out of the way of the new construction work. The maintenance work for opening the GIS switchgear at Ilpoinen substation was completed. A project for renewing the KJ relay sets for three substation was initiated last summer.

Construction of overhead electric lines for the distribution network continued for both the medium-voltage and low-voltage networks. For the low-voltage network, the largest redevelopment site was in Kastu.

New locations were added for the remote use and monitoring of transformer substations. Installation of remotely-readable fault detectors began and will continue during 2018. In relation to the remote use of substations, work began to shift to IP-based data transfer via the optical network through the purchase of new switchgears and network specifications.

Regarding measurement data administration, the project for replacing the old remote meters was continued. In 2017 over 10,000 meters were replaced (the project will continue until June 2018). In addition, over 2,600 new meters where installed in new consumption points.

New products and services for electricity customers’ lives

In our electricity sales work, we invested in the development and production of new products and services. During the year, we signed new cooperation agreements with Finnwind Oy and OptiWatti Oy with the goal of responding to customer demand on the service markets. Through these service agreements, Turku Energia added to its range of products solar panel packages and control systems for electrically heated homes.

Demand for solar power was met by expanding the solar power plant located on the roof of Teknologiakiinteistöt Oy in Kupittaa with 100 extra panels. Customers can rent their own panel from the power station and receive the profit from its electricity production as a reduction of their own electricity bill.

Turku Energia also launched the Eco-Guarantee service, through which customers can verify the origin of a product bought which was produced from multiple electricity sources or, if they have already acquired a renewable energy product, they can make their own extra contribution for the good of the environment with the Eco-Guarantee Extra service.

Turku Energia’s electricity generation affiliates comprise hydro, wind and combined heat and power affiliates. Their production amounted to nearly half of the electricity sold. Turku Energia has electricity generation shares in Turun Seudun Energiantuotanto Oy (39.5%), Svartisen Holding AS (34.74%), Kolsin Voima Oy (22.5%), and Suomen Hyötytuuli Oy (12.5%). Turku Energia acquired the electricity that it sells from the Nordic electricity exchange Nord Pool Spot. Electricity production continues to be encumbered by the low market price of electricity.

The multiple-fuel power plant completed in Naantali in December 2017 will significantly increase the proportion of electricity from renewable energy sources sold by Turku Energia. The proportion of electricity produced by wind power will also be more than doubling in the coming year. This doubling of wind power’s share of Turku Energia’s electricity production is possible thanks to the offshore wind farms completed last year by our affiliate Suomen hyötytuuli Oy and the bilateral purchase agreements made with them.

In service production, we focused on supporting electricity transmission processes and the implementation of infrastructure-based services

In accordance with the strategy, service provision concentrated on supporting Turku Energia Group’s electricity transmission processes as well as providing street lighting and traffic lights-based infrastructure services. Service production is implemented by the Contracting Services unit, where about 80 people work.