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For the eighth year in a row, Finland has been named the happiest country in the world. This recognition is typically attributed to factors such as social support, quality healthcare, and strong income equality. But beyond these well-known factors, the country’s electricity system may also play a role in supporting national well-being. It might be a stretch to say that Finland’s electricity system is the reason Finns are happy, but European studies show that Finnish people are more satisfied with their electricity industry than the average European consumer.
So what do Finns have to be happy about when it comes to electricity? Well, at a high level, Finland’s electricity performance can be summarized through four key lenses: sustainability, affordability, security, and innovation.
Sustainability: A Low-Carbon Leader
Finland aims to be carbon neutral by 2035, putting it ahead of many other countries in the global fight against climate change. Over 94% of Finland’s electricity production now comes from low-carbon sources. Nuclear power accounts for 42%, followed by hydro and wind at 19% each, and bioenergy at 13%. In April 2025, Finland also shut down its last coal-fired power plant, completing its coal phase-out four years ahead of schedule.
Affordability: Among the lowest prices in Europe
Finland consistently ranks as one of the most affordable electricity markets in Europe both for its industrial and residential sectors. On top of low energy prices, Finland benefits from low network costs due to an efficient and well-developed power grid. In addition, the financing of renewable energy is covered by the national budget rather than being applied to electricity bills. Unlike other countries, this leads to low regulated charges in the end-consumer bills.
All-in electricity prices for end-user in Europe (April 2025)
Figure 1: All-in electricity end-user price
Security: Reliable and Resilient
Despite being a net importer of electricity, Finland maintains a highly reliable power supply. Following the shutdown of imports from Russia in 2022, Finland accelerated the expansion of the Aurora Line, increasing the cross-border capacity with Sweden by 800-900 MW. The project is expected to be fully completed this year. Domestically, Finland has also significantly reduced its net electricity imports, from 15% in 2022 to just 2% in 2023. This was mainly driven by the launch of Olkiluoto 3 (OL3), the largest single nuclear reactor in the European Union.
Innovation: Pioneering Green Hydrogen
Finland is also positioning itself at the forefront of clean energy innovation. The country aims to produce one million tonnes of green hydrogen by 2030 which accounts for 10% of the EU’s target. In March 2025, Finland inaugurated its first industrial-scale green hydrogen plant in Harjavalta, with larger projects underway. With stable wind power and low network fees, Finland offers a highly competitive hydrogen production environment.
While Finland is globally celebrated for the happiness of its people, its electricity system tells a similarly impressive story. Sustainable, affordable, secure, and innovative, Finland’s electricity landscape reflects the same values that support its high quality of life.
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