Network impacts of locating demand closer to generation in Finland

Google commissioned Baringa to assess how the location of new baseload demand affects electricity network costs and charges in Finland from 2030. The analysis found that placing 1 GW of demand in the Oulu-Kajaani corridor in the north, closer to generation, rather than near Helsinki in the south, could reduce network costs by around €520 million over 20 years - savings ultimately shared by all billpayers. It also found that well-located demand could pay around €20 million a year more in network charges than it costs to connect.

The findings matter because Finland faces a growing geographical mismatch in its power system: by 2030, around 80% of electricity generation (mostly wind) is expected to sit in the central and northern regions, while roughly 60% of demand is concentrated in the south. Expand the full report below to explore the detailed breakdown of congestion, reinforcement and transmission-loss savings, Baringa's methodology, and the key uncertainties behind the numbers.

Download the report.

 Key Takeaways: 

• Google commissioned Baringa to assess how the location of new baseload demand affects Finnish electricity network costs from 2030.
• Placing 1 GW of demand in the Oulu-Kajaani corridor (north) rather than near Helsinki (south) could save around €520m over 20 years, shared by all billpayers.
• Savings come from avoided congestion, transmission losses and network reinforcement costs.
• By 2030, ~80% of Finland's generation (mostly wind) is expected in the north/central regions, while ~60% of demand sits in the south — a growing geographical mismatch.
• Well-located demand could pay around €20m/year more in network charges than it costs to connect.