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Turku Energia performance improves on previous year – investments in renewable energy continue

Turku Energia Group's net sales and operating profit increased compared to the previous year. The warmer temperatures affected demand for both electricity and heat. Electricity consumption in Finland fell by 1.5% and in Turku by 0.9% compared to the previous year, while sales of district heating were 3.1% lower. Turku Energia continued its investments in renewable energy and acquired more energy from renewable energy sources through its affiliated companies. The continuity of electricity and heat supply remained at a good level.

Turku Energia Group’s turnover increased in 2019 to EUR 276.8 million (2018: EUR 258.7 million). The Group’s operating profit also increased slightly to EUR 18.5 million (EUR 15.2 million). The Group invested EUR 15.3 million (EUR 25.2 million) into the transfer capacity of the networks and in improving and maintaining the reliability of supply with respect to the electricity and heat networks.

Turnover, EUR millions

Operating profit, EUR millions

Investments, EUR millions

Turku's energy total number of personnel increased by 67 at the beginning of 2019 when the operation and maintenance business of the Naantali power plant was transferred to Turku Energia through a business deal. Turku Energia also focused on developing its product and service production, and the demand for solar energy and for electric car charging stations grew significantly. Turku Energia’s levels of customer satisfaction have remained excellent. According to the Retail Electricity Survey conducted by EPSI Rating, Turku Energia’s business customers are among the most satisfied customers in the sector, and Turku Energia was one of the top three in the ratings for consumer customers.

Towards coal-free production

The warmer temperatures affected demand for district heat. Sales volumes for district heating fell by 0.9 per cent to 1897 GWh (1958 GWh). Most of the district heat was sourced from Turun Seudun Energiantuotanto Oy’s Naantali power station, the Oriketo bioheat plant and the Kakola heat pumps. The proportion of heat generated using domestic wood fuel, landfill gas, recovered heat and waste as well as other renewable forms of energy increased significantly and accounted for 61 % (50 %) of the acquired heat.

In addition to optimising and developing production, district heating business operations focused on the development and design of new heating products. Turku Energia expanded its product and service range by introducing new services such as the Eco-Guarantee Heating service, which enables customers to purchase 100% of their district heating from renewable energy sources.

During the year, significant steps were also taken towards coal-free district heating. The aim is that at the end of 2020 coal will only account for 10% of the fuel used.

In autumn 2019, Turku Energia submitted an application together with Turun Seudun Energiantuotanto Oy for a permit to drill two thermal wells in Koroinen. The wells would be approximately 7,000 metres deep and would be used to establish a geothermal plant. The final decision on the construction of the geothermal plant will be taken once St1's first geothermal plant in Espoo has been completed and is in operation.

The amount of coal used for fuel at the Naantali power plant, operated by Turku Energia’s affiliated company Turun Seudun Energiantuotanto Oy:n (TSE), was also reduced by making energy production more efficient. In 2019, TSE built a flue gas condenser within the multifuel unit of the Naantali power plant.

The condenser increases district heating production power in the multifuel unit by 30 per cent, equivalent to 60 megawatts (MW), but without increasing fuel consumption. The heat produced by the flue gas condenser mainly replaces the heat previously produced by coal and corresponds to the amount of heat consumed annually by approximately 600 blocks of flats.

The reliability of supply to customers of Turku Energia’s heat and cooling remained at a very high level in 2019. The calculated interruption per district heat customer was an average of 48 minutes.

Sales of district heat, GWh

Electricity consumption falls in Turku – reliability of supply continues at an excellent level

In Turku, electricity consumption decreased by 0.9% compared to the previous year, partly due to the warmer temperatures. A total of 1503 GWh (1517 GWh) of electricity was transferred to customers in our own network area, while 479 GWh (489 GWh) was transferred to other system operators. The quality of electricity distribution remained at a good level. At the end of the year, the average time that the service was cut off was 10 minutes 18 seconds per customer (11 minutes 34 seconds).

Turku Energia Electricity Networks had 90,467 usage sites at the end of 2019. This represents an increase on the previous year of 3,928. In addition, it is estimated that there are about 40,000 sites where electricity is used in jointly purchased buildings that not direct customers of Turku Energia Sähköverkot Oy.

Electricity consumption peaked at 288 megawatts (292) between 8 am and 9 am on 22 January 2019.

Distribution of electricity, GWh

Demand for solar panels and electric car charging stations increased significantly

The energy solutions business strategy was updated in 2019. Demand for solar power plants and electric car charging stations increased significantly during the year. In 2019, the Customer Service unit was merged with the Energy Solutions unit in order to support the improvement of the customer service process.

Customer satisfaction remained high. According to the Retail Electricity Survey conducted by EPSI Rating, Turku Energia’s business customers are among the most satisfied customers in the sector, and Turku Energia was one of the top three in the ratings for consumer customers.

Turku Energia procured the electricity it sold from the Nordic electricity exchange Nord Pool Spot, and also sold its share of the electricity generated by the power plants operated by its affiliate companies there. Turku Energia has shares in electricity generation in Finland in Kokemäenjoki and Kymijoki via Kolsin Voima Oy, as well as in Norway via Svartisen Holding A/S. Turku Energia has shares in wind power generation in the areas near Pori and Raahe via Suomen Hyötytuuli Oy. In addition, Turku Energia procures or acquires electricity from other generators of wind and water power via bilateral agreements. The amount of electricity generated was a little lower than the planned level. This, together with the lower market price level, weakened the profitability of electricity production compared to the previous year.

Turku Energia's wind power production increased by approximately 35 GWh, equivalent to the annual electricity consumption for 20,000 apartments or 2,000 detached homes, through the wind park projects of the affiliated company Suomen HyötyWindi Oy. The share of wind power in Turku Energia annual energy production increased to around 23 per cent.

In September, Turku Energia's largest solar power plant project to date was completed at Meyer Turku shipyard. Turku Energia and Finnwind Oy supplied the solar power plant comprised of 1584 solar panels to the Meyer Turku shipyard. The amount of electricity produced by this power plant corresponds to the annual electricity demand of nearly 200 apartments and reduces CO2 emissions by more than 100 tonnes per year.

Generation Services Unit’s first year of operations was a success

Turku Energia expanded its operating and maintenance activities by buying from Fortum in August 2018 the operating and maintenance business at TSE’s Naantali Power Plant. The business was transferred to Turku Energia on 1 January 2019. As a result of the business deal, the number of personnel at Turku Energia increased by 67. At the beginning of 2019, Turku Energia set up a new Generation Services business unit, which provides all the operating and maintenance services at Turun Seudun Energiantuotanto Oy’s plants, Naantali power station, the Oriketo bioheat plant and the Kakola heat pumps. Through the expansion of our operation and maintenance business, Turku Energia was able to optimise production and heat distribution more efficiently.

Operational efficiency of Sub-contracting Services remained competitive

The Sub-contracting Services Unit focused its strategy on supporting Turku Energia Group’s electricity transmission processes as well as providing street lighting and traffic light infrastructure services. The unit's operational efficiency remained competitive, and its largest customers were Turku Energia Sähköverkot Oy and the City of Turku.