Finland’s first pumped-storage hydro plant moves forward despite local opposition

Finland’s state-owned energy company Kemijoki Oy has submitted permit applications for the country’s first pumped-storage hydro plant in Kemijärvi, northern Finland, despite the municipality’s formal opposition to the project, reports Yle.

The Ailangantunturi plant, planned for completion by 2032, would generate an estimated €3.7 million annually in property tax revenue for Kemijärvi—a 70% increase in the city’s current tax income—while creating hundreds of jobs during its 4–5 year construction phase, according to project director Petri Vihavainen.

Kemijoki Oy filed water and environmental permit applications in April, alongside a grid connection request. The project was also designated an EU “Project of Common Interest,” enabling an accelerated permitting process. CEO Tuomas Timonen called the designation “a significant recognition of the project’s importance.”

Local resistance remains strong. In February, Kemijärvi’s city council voted to reject pumped-storage plants, citing concerns over environmental and community impacts. A survey commissioned by the company, however, found many residents open to negotiations. The council later set conditions for any future projects, including guaranteed financial benefits.

Environmental assessments, revised after initial criticism from Lapland’s regional authority, confirm temporary harm to local fish stocks during construction due to dredging in spawning areas. Two other companies, Pohjolan Voima and Suomen Voima, are planning separate pumped-storage projects in the region.

Finland’s government has signaled support for such facilities, which help stabilize electricity prices by storing excess energy. Construction of the Ailangantunturi plant could begin as early as 2029, pending final approvals.