Gasgrid says more balancing power will not increase fossil gas use

Finland’s total use of imported fossil gas is not expected to rise as the country builds more gas-fuelled balancing power, Gasgrid Finland CEO Olli Sipilä told Yle. Gasgrid expects lower consumption in heating and industry to offset increased use in power generation.

Fingrid, Finland’s national grid operator, estimates the country will need about 1,000 megawatts of additional fast-start balancing power by 2030. Balancing power can be brought online quickly when electricity production, for example from wind, is insufficient.

Gas engines and turbines are among the options that can be built quickly. They typically use methane, which can come from natural gas, liquefied natural gas, biomethane or synthetic e-methane.

Gas use for heating has already been displaced by biomass-fuelled plants and hot-water storage systems that heat up when electricity is cheap, Sipilä said. Demand for balancing power is expected to grow as weather-dependent wind and solar generation expands and electricity needs rise at facilities such as data centres, which use power steadily.

Gasgrid says domestically produced biomethane and e-methane could also reduce reliance on imported fossil fuels. They currently account for about 10% of the market, but Gasgrid says as much as two-thirds of Finland’s methane use could, in theory, be supplied from domestic production, based on its market surveys. Imports may still be needed during periods of peak demand.

Sipilä said Gasgrid has received more inquiries from power plant developers seeking connections to the gas network, a trend that has been clear for the past couple of years. The company has commissioned a study identifying places near the network where plants could be built quickly with access to both gas and electricity.