Finland Shuts Down Its Last Utility-Scale Coal Plant

The last utility-scale coal plant in Finland has closed. The Salmisaari plant, operated by the Helsinki-owned energy group called Helen, shut down its final coal-powered electricity and heat plant on Tuesday, as the country focuses on more renewable energy sources.

As Reuters reported, Finland passed a law in 2019 that would ban coal after 2029. To respond to that target, the country ramped up its expansion of renewable energies, leading to an even quicker end to regular coal-fired power production than expected.

“Of course, we cannot say that not a single gramme of coal will be burned in Finland anymore, because there are various crisis situation solutions, but this is indeed Finland’s last coal power plant that is in daily production use,” Olli Sirkka, CEO of Helen, told Reuters.

As Power Magazine reported, wind energy capacity alone in Finland increased by more than double since 2020. Now, it contributes nearly one-quarter of the country’s energy, while the closure of the last coal-fired plant means coal-powered energy will make up less than 1% of the energy in Finland. In 2023, coal made up 6.7% of Finland’s total energy supply, according to the International Energy Agency (IEA).

The Salmisaari plant generated 175 megawatts of electricity and 300 megawatts of heat per year. Now, Helen will meet energy demands using wind, nuclear, hydropower and solar energy and will meet heating needs with heat pumps, waste heat, electric boilers, bioenergy and environmental heat sources. 

Finland will reserve some coal for energy security purposes and emergencies, and some companies may continue to use limited amounts of coal to meet peak demand needs until the country’s coal ban takes place in 2029.

According to Helen, the end to coal-fired energy production will reduce the company’s annual carbon emissions by about 50% compared to its 2024 levels, and its emissions are now about 20% of the levels from 1990. By 2030, the company plans for its emissions to be less than 5% of the 1990 level of emissions.

Helsinki’s emissions are expected to decrease by around 30% compared to last year, and Finland’s emissions are expected to decline about 2% compared to 2024.

In addition to reducing emissions, Helen noted that this shift to cleaner energy and heating sources will help reduce customers’ utility bill costs and increase Finland’s self-sufficiency.

“We have been able to improve our competitiveness by investing in the flexibility of the energy system in line with our strategy and shifting our production to clean solutions,” Sirkka said. “This way, we can operate more profitably with lower customer prices. Our success is an excellent indication that, at best, the clean transition, cost efficiency and Finland’s security of supply can go hand in hand.”