Managing Director’s Review: Looking ahead – for the benefit of the Turku region and our customers

The share of renewable and non-combustible energy in district heating reached its highest level ever. This was no coincidence, but the result of long-term investments and deliberate choices to reduce the use of fossil fuels. Last year was also the first year in which no coal was used at all in district heating production. Coal still plays a limited role in ensuring regional security of supply, but its importance has diminished to a minimum as our production portfolio has shifted from fossil fuels towards renewable energy sources.

We also increased the share of renewable energy in our own electricity generation by acquiring additional hydropower capacity from Norway. At the same time, we invested in improving the security of supply and transmission capacity of our networks. The level of investments increased compared to previous years, and this trend will continue in the coming years.

Security of supply remained at an excellent level in both electricity and heat delivery. This is something we are particularly proud of, as energy must be reliable, seamless and dependable in our customers’ everyday lives – even when the operating environment around us is uncertain.

When viewed by business area, the overall picture was somewhat mixed. District heating once again demonstrated its stability and predictability. Profitability in the electricity network business declined as a result of the new regulatory model, which poses challenges especially for the implementation of electricity network investments. The Energy Solutions business developed positively and generated a clear positive result. Electricity generation, however, was heavily loss-making, particularly at the Naantali power plant.

Although the year was financially demanding, it strengthened our strategic direction. We are committed to advancing an energy system that is sustainable, secure of supply and economically competitive also in the future. This requires continued investments, the courage to renew, and the ability to look beyond short-term financial results.

Our foundation is strong. The expertise of Turku Energia’s people, the trust of our customers and our long-term strategy provide a solid basis for continuing our work towards a more sustainable future and above all, for the benefit of the Turku region and our customers.