Power System of the Åland Islands

The Åland Islands form an autonomous and demilitarized region of Finland, consisting of over 6,700 islands located in the Baltic Sea, between mainland Finland and Sweden. With a population of approximately 30,000 residents, the region’s economy revolves around shipping, tourism, and small-scale industries, alongside a notable focus on sustainable development.

The Åland electric grid relies on a combination of imported power and local renewable energy, primarily wind power. The grid is connected to both Sweden and Finland via high-voltage subsea cables, ensuring a secure energy supply. This interconnection supports the region’s ambition of achieving energy self-sufficiency and reducing carbon emissions through increased renewable energy integration.

Electricity transmission for Åland in the last 24 hours. Source: Kraftnät Åland

The power system is characterized by a strong focus on renewable energy. Annual consumption is around 300 GWh per year. Installed wind power is 62 MW, covering 60% of annual consumption with 180 GWh/year, while solar, mostly rooftop, contributes 15 MW, generating 12 GWh/year (4%). Bioenergy adds 2 MW, producing 3 GWh/year (1%). The region has a diesel backup with 30 MW gas turbines and 10 MW dieselgenerators for emergencies. Lacking hydro or pumped storage due to flat terrain, Åland imports 145 GWh/year and exports 40 GWh/year.

Åland is connected to the Nordic grid by a 110kV AC cable to Sweden as well as an 80 kV HVDC cable eastwards to mainland Finland. The sea cables and the high voltage grid at 110 kV and 45 kV are run by TSO Kraftnät Åland, whereas the 10kV and 20 kV distribution grids are operated by DSO:s Ålands Elandelslag and Mariehamns Energi.

Main power system grid. Source: Kraftnät Åland

Åland is part of Swedish price area SE3 even if the region belongs to Finland. The reason for this is when the market opened in 1999 the cable to Sweden was the primary connection with most of export and import. The situation is still the same today, also after the HVDC cable to Finland was built in 2015.

Electricity contracts are either spot-price with hourly price or fixed-price contracts where the price level is adjusted once or twice a year.

The Åland Islands anticipate a strong organic increase in annual energy demand in the coming years and also a continued expansion of wind power and increased rooftop and commercial solar installations. The first BESS project was installed during 2024.

In addition, large-scale offshore wind projects, collectively exceeding 5 GW in potential output, are under development. However, the impact of these projects on Åland’s energy grid and infrastructure remains uncertain at this stage.