Economy

Finland electricity mix is shifting as renewables overtake nuclear

Finland electricity mix changed noticeably in 2025, as renewables—mainly wind power and hydropower—together generated more domestic electricity than nuclear for the first time, even though nuclear remained the single largest source. Total electricity consumption reached 85 terawatt hours (TWh), and net imports stayed below 6 TWh, underlining how much of the country’s growing demand is now met at home.

Wind power’s rapid rise is reshaping Finland’s power balance

Wind turbines produced close to 28% of Finland’s domestic electricity in 2025, consolidating wind as the country’s second-largest electricity source after nuclear. Over the past two years, wind’s share has increased by almost 10 percentage points, a shift driven by continued capacity additions and high utilisation in several regions.

The change matters beyond percentages. A larger wind share increases the share of low-carbon electricity in the national mix and reduces reliance on imported power during normal conditions—while also making the system more exposed to weather variability, which places a premium on transmission capacity, flexible demand and storage.

Nuclear still leads as a single source, powered by Olkiluoto 3

Despite renewables’ combined lead, nuclear power continued to account for roughly 40% of Finland’s domestic electricity production in 2025. Much of that output comes from Olkiluoto 3, Europe’s largest nuclear reactor, which has become a central pillar of Finland’s electricity supply.

In practical terms, nuclear’s role remains stabilising: it provides large volumes of steady generation, helping to limit the need for fossil-fuelled backup and supporting a system increasingly dominated by variable renewables. The 2025 numbers therefore signal not a replacement of nuclear, but a rebalancing—where Finland is moving toward an electricity system with two dominant low-carbon pillars.

Hydropower is slipping, in part as Finland removes river barriers

Hydropower accounted for about 16% of domestic electricity production in 2025, down from previous years. One factor is structural: Finland has been dismantling dams and other river barriers to restore waterways, a policy that can reduce generation in specific locations or constrain future hydropower expansion.

Finland has emerged as a European leader in river restoration, with a growing emphasis on restoring fish migration routes and improving river ecology. While the largest hydropower plants remain important, the broader direction suggests that the country’s renewable growth will come primarily from wind and solar rather than from expanding hydropower capacity.

North Ostrobothnia and Oulu are becoming an energy powerhouse

The biggest concentration of wind production is North Ostrobothnia, the region that includes Oulu. It hosts more than a third of Finland’s wind power capacity, making it the country’s most important wind hub.

The region also produces significant hydropower, with major plants located on the Oulu and Ii rivers. At the same time, large solar power plants are being built, with additional projects planned. This cluster of wind, hydro and emerging solar capacity is turning the Oulu area into a key “energy corridor” for Finland’s industrial electrification—especially as energy-intensive investments look for abundant, low-carbon electricity.

Cheap electricity, low fossil output, and a Nordic competitiveness edge

Finland recorded some of the lowest electricity prices in Europe in 2025, while electricity production from traditional fossil fuels remained negligible. The combination of strong domestic generation—nuclear, wind and hydro—has helped keep prices relatively low compared with many other European markets.

For Finland, this is not only an energy story but an economic one. Stable access to low-carbon electricity is increasingly tied to competitiveness, from data centres to hydrogen and electrified industrial processes. The policy challenge is to maintain reliability and grid stability as wind and solar expand, without losing the price advantage.

Solar is growing, but still plays a small role in the electricity mix

Solar power increased again in 2025, but it still contributed only a little over 1% of Finland’s domestic electricity production. That share remains modest, especially compared with some EU member states where solar has become a major source.

However, solar’s economics and deployment speed make it an increasingly relevant complement to wind—particularly for summer peak generation and for decentralised projects. In Finland’s northern latitudes, solar output is highly seasonal, but large-scale plants and distributed installations can still contribute meaningfully to balancing the annual system.

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