Finland Can Turn Electri­fication Into a Competitive Edge

Caruna, Finland’s largest power distribution company, is changing owners as Spanish energy company Iberdrola has agreed to buy a majority stake. The deal valued the company at roughly five billion euros. Because power grids are a natural monopoly, they are however heavily regulated, and the change of ownership matters less than the commentary might suggest.

Why isn’t power supply the bottleneck?

Data centers, along with electrifying industry, transport and heating, are putting growing strain on the power grid. At the same time, Finland has already permitted more clean power production than can be built in the coming years. The University of Helsinki’s recent data center study also finds that the bottleneck isn’t power supply — it’s the transmission grid.

Does ownership decide the grid’s future?

Complex systems rarely have simple solutions, and the power grid is a good example. It is a technically complex whole that must always stay in balance, and it is tied to the transmission grid’s natural monopoly, which only works when carefully regulated. Pricing is supervised regardless of the owner, and major electricity consumers, such as data centers, connect to Fingrid’s national grid. Capital for strengthening the grid is welcome. Ownership doesn’t decide the grid’s future. What matters most is sound regulation.

Can the new owner raise transmission fees freely?

A new owner can certainly raise transmission fees, but not freely. The Energy Authority supervises whether pricing is reasonable. Regulation tied to grid investment limits increases. Regardless of ownership, strengthening the grid is ultimately paid for by the consumer, whether through transmission fees or taxes.

Whether Finland’s power grid enables electrification at scale is largely up to political decision-makers. At its best, Finland can turn electrification into a competitive edge. Clean power production and a resilient power grid are the infrastructure modern services are built on.

I’ve also written more about infrastructure: about digital independence and about the West Railway.

Also published in: Helsingin Sanomat, 26 July 2026 (suomeksi).

Also published in: HBL, 31 July 2026 (på svenska).

Also published in: Kirkkonummen Sanomat, 31 July 2026 (suomeksi).

Also published in: Kirkkonummen Sanomat, 31 July 2026 (på svenska).