The clean transition is progressing rapidly

District heating was renewed in many ways. One of the most pivotal changes was the return of the heating business to profitability after years of operating at a loss. The change was driven by purposeful long-term work to improve the competitiveness of district heating. At the same time, we lowered customer prices for district heating and improved the transparency and consistency of its pricing by introducing monthly prices updated twice a year.

In addition to reductions in prices, Helen achieved reductions in carbon dioxide emissions. The decrease in both emissions and prices was attributable to the closure of the Hanasaari coal-fired power plant in 2023 and significant investments in carbon-neutral production capacity to replace fossil energy production. The story of coal will end for Helen in spring 2025, when we will completely discontinue its use.

We strengthened our position in the electricity market

We took a significant step in our electricity sales business by agreeing on a corporate transaction with Raseborgs Energi. As a result of the transaction, the electricity customers or Raseborgs Energi were transferred to Helen in January 2025. The transaction supports Helen’s goal of becoming the most significant player in the retail market for electricity in Finland. Through our services, we make everyday life a little easier for approximately 600,000 customers across Finland.

In spite of the changed geopolitical climate, the situation in the electricity market has returned to the pre-energy crisis level in many respects. The average prices of electricity have become more moderate and, with the exception of the peak in prices caused by the cold weather at the beginning of the year, extreme circumstances were avoided. However, one thing is different than before: larger fluctuations in electricity prices are here to stay.

We laid the groundwork for flexibility

Electricity price fluctuations, which can be quite significant at times, and the sufficiency of electricity stirred debate in society during the year. The transition from a stable-price fossil economy to a system based on renewable energy has taken place faster than expected, which has highlighted the need to mitigate fluctuations in electricity prices. Price fluctuations create an incentive to develop the flexibility that is necessary for the market’s ability to function. If achieved, this flexibility evens out price fluctuations.

If a market-based flexibility market does not develop quickly enough, it may be necessary to maintain the current regulating power capacity in the market for low-wind days during the transition period, when maintaining that regulating power capacity would otherwise be uneconomical. On an annual basis, there is sufficient electricity in Finland, the average market price is low, and there are several wind and solar farms investments in the pipeline.

We executed our strategy

The cornerstones of our strategy – the clean transition, flexibility and profitability – are reflected in everything we do. We are committed to making our energy production carbon neutral by 2030, and our aim is to phase out all combustion by 2040.

We have now operated under our new organisational structure for one year. The structure is based on business units that are accountable for their results and functions that support the business units. The new structure enables even better services for our customers and supports the profitability of our business in accordance with our strategy.

We sold our majority stake in Geonova Oy, a provider of geothermal and heat pump solutions, as we are focusing on district heating and cooling services in our heating business. We also transitioned to a partnership model in our customer service and solar power solutions to customers. The changes enable us to focus on Helen’s core business.

We prepared for new sustainability reporting requirements

The EU’s Corporate Sustainability Reporting Directive (CSRD) changes companies’ sustainability efforts and related reporting, and the new requirements also affect Helen. CSRD-related development work is one of the Group’s strategic projects, the progress of which is regularly monitored by the Management Group. Helen will report on its sustainability in compliance with the CSRD for the first time in its disclosures on 2025. However, we have already voluntarily taken the new reporting requirements into account, as applicable, in our Sustainability Report on 2024.

During the year, we added depth to Helen’s double materiality assessment, and our work on double materiality will continue in 2025 by expanding our stakeholder consultation, for example. We also began a development effort concerning human rights due diligence. The aim is to identify Helen's key adverse human rights impacts and create a monitoring method for such impacts. We focused on training the company's senior management on sustainability themes and created an online training module on sustainability for Helen employees.

Record-high investments

Our investments in carbon-neutral energy were evident at Hanasaari, where Helen's first electric boilers were deployed in production use. We also made investment decisions on a new air-to-water heat pump plant, six electric boilers and a heat storage facility. The significant heating-related investments made in 2024 are scheduled to be completed during the 2026–2027 heating season. The change that is currently under way in heat production will increase Helen’s electricity consumption, as a growing proportion of district heating is produced using electricity-based solutions.

Helen’s renewable electricity production will take a significant leap in growth in 2025. All of the wind and solar farms we currently have under construction will start generating electricity by the end of 2025, at which time our wind power capacity will be almost 1 GW. In the spring, we inaugurated the Pjelax wind farm owned by Helen and Fortum Corporation. The wind farm's annual production of 1 TWh represents approximately five per cent of Finland's total wind power production. To increase the flexibility of the energy system, we invested in electricity storage in Nurmijärvi. The first year of operation of the Lakiakangas electricity storage facility was also successful.

The energy transition places new demands on the electricity network. To enable the clean transition, Helen Electricity Network Ltd will invest more than EUR 300 million over the next 10 years, which will also include the renewal of the ageing network. When combined heat and power production is discontinued, there will be hardly any electricity production in Helsinki. Consequently, securing the main grid's transmission capacity in the Helsinki metropolitan area is an absolute prerequisite for an increasingly electrified society.

We started Helen’s first hydrogen project

Our hydrogen business took a concrete step forward when we made an investment decision on Helen’s first green hydrogen production plant. The pilot plant to be built in Helsinki’s Vuosaari district will allow us to increase our expertise to meet the needs of large-scale hydrogen production and enhance the flexibility of the entire energy system.

The produced hydrogen will primarily be used through a hydrogen refuelling station to be built at the plant. It is also possible to deliver hydrogen to customers in containers. The waste heat generated as a by-product of the production process will be put to use in Helen’s district heating network. The aim is to launch hydrogen production in 2026.

We began investigating the possibilities of small-scale nuclear power

In order for Helen to achieve its strategic non-combustion target and phase out biomass combustion by 2040, we need alternative heat production solutions. A diverse production portfolio ensures the security of supply. The most promising alternative to combustion is small-scale nuclear power, which has seen significant developments in recent years.

To achieve our goal of non-combustion, we launched a nuclear energy programme with the aim of building a combined heat and power plant or a district heating plant. In the first phase of the multi-year programme, we will negotiate with potential partner shareholders and plant suppliers and evaluate potential plant sites.

The clean transition continues

The year 2025 will bring major changes to the daily life of Helen’s employees as we move from the iconic Sähkötalo building to a new office in Helsinki's Salmisaari district. The move will enable even closer cooperation across the Helen Group, which will hopefully be reflected in even better services and innovations for our customers.

I want to take this opportunity to extend my heartfelt gratitude to our customers, partners and owner for the eventful year we had in 2024. I want to pay special thanks to the 777 Helen employees who work every day for the climate, the environment and a better future for all of us on this planet. We will take care of our customers and continue to work for the clean transition in 2025.