Business Review 2018

Over half of the electricity and heat sold by Turku Energia is generated using renewable energy sources - turnover remained at the previous year’s level

Turku Energia Group’s turnover remained at the previous year’s level and the operating profit was slightly lower than the previous year’s. Electricity consumption in Turku increased by 2.5 per cent compared to the previous year. During the year, Turku Energia increased its share of renewable energy sources in energy generation through deals made by its affiliate companies and by replacing oil in its own power generation. The company achieved its target for 2020 ahead of time: half of the electricity and heat sold by Turku Energia was generated using renewable energy sources. The continuity of electricity and heat supply remained at a good level. The number of employees at Turku Energia increased by 66 people at the beginning of 2019 as the result of the business acquisition agreed in August.

Turku Energia Group’s turnover was EUR 258.7 million (2017: EUR 255.0 million) and the Group's turnover was EUR 15.2 million (EUR 17.8 million). The Group invested EUR 25.2 million (EUR 23.8 million), in the transfer capacity of the networks and in improving and maintaining the reliability of supply with respect to the electricity and heat networks.

According to the customer satisfaction survey commissioned by Finnish Energy, a company representing the energy sector, 98% of Turku Energia’s customers are satisfied with the company’s performance. Comparing the overall ratings of the companies in the sector that took part in the survey, Turku Energia was in first place.

Half of district heat sold generated with renewables

The amount of district heat sold increased a little over the previous year and totalled 1,958 Gigawatt hours (1,927 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 50 % (34 %) of the acquired heat.

District cooling and steam were supplied as planned. The new steam generation plant built at Artukainen was commissioned in October 2018. The plant will mainly produce steam for companies in the area and will reduce the use of heavy fuel oil and carbon dioxide emissions in Turku Energia’s operations.

The continuity of supply to customers of Turku Energia’s heat and cooling remained at an extremely high level in 2018. The calculated interruption per district heat customer was an average of 58 minutes.

The new pricing structure for district heat was adopted in November 2018. The pricing structure was revised to correspond to the new generating structure and real generation costs. The objective of the new pricing structure, that is based on seasonal pricing, is also to encourage customers to be energy efficient and to direct their attention to peaks in power consumption.

Electricity consumption increased in Turku

Electricity consumption in Turku grew by 2.5 per cent compared to the previous year. Electricity was transferred to customers in our own network area to a total of 1,517 GWh (1,480 GWh) and to other system operators 489 GWh (519 GWh). The total number of connections was 19,266 of which 776 were new connections. The number of sites where electricity was used totalled 86,539 (83,121) at the year end, an increase of 4.1 per cent. In Turku there are also about 43,500 sites where electricity is used in jointly purchased buildings and these are not direct customers of Turku Energia Sähköverkot Oy.

The quality of electricity distribution remained at a good level. At year end, the average time that service was cut off was 11 minutes 34 seconds (8 minutes 54 seconds) per customer.

The most significant alteration work to the network was replacing the overhead 110 kV cable with an underground cable between Pakkari and Patterinhaka. Overhead cabling will continue in the medium voltage and the low voltage networks. With regard to the low voltage network, the major renovation sites were in Teräsrautela and Perno.  New sites with remote command and telecontrol of transformers were added, and the installation of remotely managed fault indicators on the network was continued. The latest remote command system was commissioned and the installation project will continue until 2020.

The decision was made during the year to continue the management of meter data by implementing the project to changeover to seasonal pricing for old remote meters. During 2018, about 5,200 meters were changed. In addition to this, almost 3,800 meters were installed in new sites.

Energy solutions units provides a comprehensive service for energy issues

The Electricity Sales unit changed its name during the year to become the Energy Solutions unit. The unit provides an electricity sales service to private customers as well as providing comprehensive energy solutions for corporate customers for electricity and heat. Customer satisfaction remained at a high level for both corporate and private 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. However, the higher market price of electricity the previous year improved the profitability of electricity generation compared to the previous year.

Turku Energia’s annual generation of wind power increased by 10 per cent when its affiliate company Suomen Hyötytuuli Oy bought wpd Jokelan tuulipuisto Oy, located in Kalajoki from wpd europe BmbH. Turku Energia also increased its shares in hydropower by buying more hydropower from Norway as the result of purchases made by its affiliate company Svartisen Holding AS. Svartisen Holding AS bought Fortum Oyj’s 10 per cent share in the hydropower generation company Hafslund Produksjon Holding AS which operates in southern Norway.

In October Turku Energia’s and Finnwind’s cooperative solar power generation plant on the roof of Aitopakka, with a nominal power of 165 kWp, that was commissioned byTurun Ylioppilaskyläsäätiö, was completed. The generator contains 515 solar panels.

Turku Energia also concluded an agreement with Aurajoki Oy to offer the power for Aurajoki’s hot dip galvanising plant, that operates in four municipalities, to the demand flexibility markets. Turku Energia works in cooperation as a technical implementer and trader to Fingrid.

The Generation Services unit concentrates on operating and maintenance activities

Turku Energia expanded its operating and maintenance activities by buying the operating and maintenance business at TSE’s Naantali Power Plant from Fortum in August 2018. The deal involved the transfer of 66 professionals to Turku Energia at the beginning of 2019. 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.

Contracting Services concentrated on supporting electricity transfer processes

 

Operational efficiency in the Contracting Services unit continued to be competitive during 2018. In accordance with the strategy, service provision concentrated on supporting Turku Energia Group’s electricity transmission processes as well as providing street lighting and traffic lights infrastructure services.