Adven and Kuusamon EVO enter the electricity reserve markets together

Entering the reserve markets is a natural next step in the electrification of Kuusamo's energy production, a goal the companies have actively advanced together in recent years. One year ago, Adven and Kuusamon EVO agreed to modernize the district heating production to be partially based on electricity. Adven is currently building a new energy center in the Mäntyselkä industrial area, consisting of a 110-kilovolt grid connection, an electric boiler, and energy storage. The additional investments now being made complement the overall system and enable participation in all types of reserve markets.

“EVO’s goal is to produce district heating as cost-efficiently as possible. With this solution, we are diversifying our district heating production, and the revenues gained from the reserve markets positively impact the price of district heating. Today's electricity production requires functioning electricity markets that support grid balance. A stable power grid is also essential for EVO's operations. Adven is a long-term, reliable, and skilled partner for EVO. With this agreement, we are strengthening our partnership well into the 2030s,” says Mika Mankinen, CEO of Kuusamo Energy and Water Cooperative.

“Kuusamon EVO is a front-runner in the electrification of district heating and an exceptionally versatile site for the reserve markets. The mix of different production technologies, units, and energy storages, combined with top-tier controllability of the equipment, brings extensive optimization possibilities. This makes the entire setup very interesting and enables significant cost benefits for the customer,” says Arto Liikanen, Account Manager at Adven.

Weather-dependent energy requires grid flexibility

Electricity must be fed into the grid in the exact same amount it is consumed at every moment. Reserve markets ensure that electricity production and consumption remain in constant balance.

The need for grid flexibility has grown significantly as weather-dependent wind and solar power production increases, and Finland’s transmission system operator, Fingrid, predicts this growth will continue. As variable electricity production increases, the grid experiences more volatility, which must be actively balanced.

Fingrid procures balancing power from the reserve markets for situations where the grid frequency changes suddenly. Any electricity production, consumption, or storage asset that meets technical requirements and can react to changes in seconds or minutes, by increasing or decreasing power, can act as a reserve resource for the power system. Fingrid compensates reserve market participants for maintaining reserves and adjusting their consumption or production to balance Finland's main grid.

Reserve markets open new opportunities for energy cost optimization

By participating in the electricity reserve markets, Adven brings new opportunities for managing and optimizing its customers' energy costs. The goal of optimization is to ensure that energy is always produced for the customer at the most competitive price relative to the current market situation.

“Traditional energy cost optimization is based on comparing fuel and electricity prices on the spot market. The reserve market adds a new dimension alongside this, allowing us to maximize the production potential of our customers' plants. Customers with flexible capacity and energy storage, such as thermal or electric batteries, can derive considerable value and cost benefits from the market. The revenue and cost savings gained from participating in reserve markets directly reduce the customer's total energy cost,” Liikanen explains.

Growing need for reserves to stabilize the power grid

As a result of the energy transition and the electrification of society, possibilities to adjust electricity production and consumption are needed more than ever to balance the power grid. Reserve markets are also a central part of Finland's security of supply and the resilience of critical infrastructure.

With participation in reserve markets, the opportunity to join reserve markets also opens up for other Adven’s customers, provided the site has sufficient controllable capacity and storage alongside energy production.

“This is a significant new opening for Adven in Finland and indicates the direction in which industrial energy partnership is developing. We have the market's best means and tools at our disposal to minimize our customers' energy costs while further strengthening security of supply. At the same time, we expand our customers' opportunities to participate in balancing Finland's electricity system and securing the system operates without disruption in all conditions,” states Ville Heikkinen, CEO of Adven Finland.

For more information:

Arto Liikanen, Key Account Manager, Adven, tel. +358 50 455 7439

Mika Mankinen, CEO, Kuusamo Energy and Water Cooperative, tel. +358 20 741 4904