Russia Halts Power Exports to Finland
- May 18, 2022
- Posted by: Quatro Strategies
- Category: Energy
Russia had cut all its exports of electricity to Finland on Monday following Russian utility company Inter RAO’s announcement last week that it would halt them because payments had not been made.
Inter RAO said on Friday it would stop delivering power to Finland from Saturday “for the time being” because it had not been paid via pan-European exchange Nord Pool since May 6.
Finnish grid operator Fingrid said the country would be able to replace Russian supplies with Swedish power and domestic production. Russia supplies about 10% of Finland’s needs.
The operator said the cut was related to payment problems related to Western sanctions on Russia, rather than some kind of retaliation for Finland’s other actions, namely its pursuit of NATO membership.
Fingrid further stated that the suspension is due to payment restrictions rather than a Russian countermeasure.
Flows of Russian power to Finland on Monday stopped completely. They fell from 87 megawatts to zero early on Saturday.
Fingrid said last month it had prepared for the prospect of Russia cutting electricity flows to Finland by restricting the transmission capacity by a third.
As a result of the loss of Russian deliveries, Finland’s wholesale power prices are expected to go up by €8.20 to €90.20 per MWh for the third quarter.
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