2.3.2026

Energy security is a matter of investment and competitiveness

The electricity price spikes at the start of the year were a stark reminder that the vulnerability of the energy system is not a theoretical risk. The windless cold weather had a significant impact on price levels, and this, paired with the global security situation, helped bring the question of security of supply back to the fore.

Energy security is not simply a question of price levels, however. It is a matter of investment, competitiveness and the overall functioning of the economy.

Russia’s war of aggression and the systematic destruction of energy infrastructure in Ukraine have shown that energy is a strategic instrument. More than 60 per cent of Ukraine’s electricity generation capacity has been destroyed during the war – and yet the system has held up, largely thanks to historical redundancy.

The lesson is clear: crises cannot be managed by reacting to them as they unfold. They are managed by preparing for them in advance.

The Finnish electricity system faces a structural challenge. As the share of renewable energy in electricity production increases, generation is increasingly concentrated in Ostrobothnia and Lapland. Electricity consumption, however, does not follow suit in a linear fashion, but will continue to be largely concentrated in southern Finland. This makes transmission networks a critical element of the entire system. The pressure to invest in transmission infrastructure is further intensified by the explosive growth in electricity storage projects as well as the broader electrification of industry and district heating networks. At the same time, the predictability of obtaining a grid connection is an essential prerequisite for attracting the industrial investments that Finland needs.

Resilience does not stem from a single solution. It requires a diverse electricity mix, robust transmission networks, storage capacity, and the protection of critical infrastructure against both physical and cyber threats.

Long-term infrastructure and energy investments require predictable regulation.

When a company makes an investment decision worth hundreds of millions or billions of euros, it needs to know what the rules are – and that those rules will not change midway.

Erratic regulatory changes translate directly into uncertainty in investment decisions. Energy security requires a regulatory framework that is investment-friendly, aligned with EU-level requirements, and flexible enough to adapt to changing circumstances.

Energy security is an integral part of the stability of Finland’s investment environment. Sufficient energy availability, functioning infrastructure and a clear set of rules form the foundation upon which industrial investments, data centre projects and green transition initiatives are built. Advancing these is in the interest of Finnish society as a whole.

Energy security is not an achieved state. It is an ongoing process that requires investment, cooperation and long-term commitment. The question is not whether we can hold our own against others, but whether we are building an operating environment in which growth and the green transition can be realised even in an uncertain world.

Latest references

We acted as Finnish law legal adviser to the lenders and the export credit agencies in connection with the EUR 514.4 million green project financing for the development and construction of Easpring Finland New Materials Oy’s cathode active material (CAM) manufacturing plant in Kotka, Finland. The borrower, Easpring Finland New Materials Oy, is a joint venture owned by Beijing Easpring Material Technology, Finnish Minerals Group and LG Energy Solution. The financing was provided by six international commercial banks, with Société Générale acting as financial adviser and mandated lead arranger together with Natixis as co-mandated lead arranger, and DNB, ICBC, ING and Standard Chartered participating as lenders, with support from the export credit agencies Finnvera and Sinosure. The project represents a significant milestone for Finland and the European battery value chain by strengthening Europe’s domestic supply of cathode active materials, a key component in lithium-ion batteries for electric vehicles and energy storage applications. Once the first phase of the project is operational, the Kotka facility is expected to produce approximately 60,000 tonnes of cathode active material annually, making it one of the largest CAM production plants in Europe and supplying leading battery manufacturers across Europe. 
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