Owners signal they will reject state bid for Palokki plant
Thursday 29th October 2026 on 16:45 in
Finland
Finland’s government is unlikely to acquire the Palokki hydroelectric plant, a key obstacle to its plan to remove the dam and restore the rapids, Yle reports. The plant’s owner, North Karelia Electricity, is not expected to change its position on selling to the state.
Teemu Mustonen, who chairs the boards of both North Karelia Electricity and its largest shareholder, North Karelia Energy Holding, said the company would wait for municipalities to decide. He said the holding company supported the electricity company’s position and would not yield to the government’s offer.
Most municipalities that directly own shares in North Karelia Electricity currently support removing the dam, though further decisions are due next week. Joensuu, Kitee, Liperi, Heinävesi, Savonlinna and Kuopio support the sale to the state. Kaavi, Lieksa, Nurmes, Ilomantsi, Tohmajärvi, Rääkkylä and Juuka oppose it. Tuusniemi has called for an independent assessment of the company’s 80 million euro valuation. Kontiolahti, Polvijärvi and Outokumpu have yet to decide.
The final decision rests with North Karelia Electricity’s board. Board chair Paavo Haverinen said it would respect shareholders’ views but also had to comply with company law and protect the company’s interests. The board has previously said the state’s offer was too low and would not be accepted.
North Karelia Energy Holding owns about 54 percent of the electricity company, making its position decisive in practice. The holding company is wholly owned by municipalities.
The government’s plan, included in its 2023 programme, is to buy the dam and power plant at Palokki in Heinävesi and then remove the dam. Built in 1961, it blocks reproduction of the critically endangered Saimaa lake trout in the area.
In June 2026, the state made two offers: at least 40 million euros after a monitoring period, or 30 million euros for an immediate purchase. North Karelia Electricity has not accepted them, saying the price is too low. The board of North Karelia Energy Holding is due to discuss the issue in mid-November.