Finland offers €30m for immediate purchase of Palokin hydropower plant

The Finnish state has presented a second offer for the Palokin hydropower plant in Heinävesi, proposing a direct purchase for €30 million, according to documents presented to Joensuu city council and reported by Yle.

The primary offer remains a €40 million deal contingent on a monitoring period, during which the plant’s value would be finalised. Under this option, the state would first pay €10 million to separate the plant into a subsidiary, followed by a 3–5 year assessment phase. If restoration of the rapids for migratory fish fails, Pohjois-Karjalan Sähkö would refund €7 million to the state. Independent investment banks would determine the final valuation post-assessment.

Pohjois-Karjalan Sähkö, the current owner, values the plant at least €80 million and has resisted selling. The state’s valuation, conducted by consultancy Spring Invest, estimated the plant’s worth at €35 million.

Oulu University professor Juha-Pekka Kallunki, an expert in corporate valuation, noted that such a wide gap in price expectations—over 100%—suggests one party may be unwilling to negotiate or is manipulating the price. Typically, valuation differences in business deals range between 10–30%, he said.

The state aims to dismantle the plant to restore the rapids as a spawning ground for migratory fish like landlocked salmon and trout.