FINLAND "AHEAD OF SCHEDULE" ON COAL PHASE-OUT: HELSINKI'S SALMISAARI PLANT CLOSES

HELSINKI, FINLAND • Finland has completed its coal phase-out plan four years ahead of schedule, with the Salmisaari power plant in Helsinki officially shutting down today. Wind power has more than doubled since 2020, now supplying a quarter of the country's energy needs, demonstrating a successful transition away from fossil fuels.

Helsinki, Finland, April 1, 2025 – 8:46 AM CEST – With the closure of a power plant today, Finland has completed its plan for the complete elimination of coal-fired energy, four years ahead of schedule.

On April 1st, energy company Helen officially decommissioned the Salmisaari plant in Helsinki, reducing coal's share in the country's energy mix to less than one percent.

In addition to cutting emissions and increasing energy independence, the company states that the shift from coal is helping to lower customer bills.

"We have been able to improve our competitiveness by investing in the flexibility of the energy system in line with our strategy and shifting our production towards green solutions," said Olli Sirkka, CEO of Helen.

"This way, we can operate more profitably with lower prices for customers. Our success is an excellent indication that, at best, clean transition, cost efficiency, and security of supply in Finland can go hand-in-hand."

Wind Power Replaces Coal in Finland

In recent years, the increase in wind power and changes in government policies have led to a collapse in coal-fired energy in Finland.

Since 2020, wind power capacity has more than doubled, now providing a quarter of the country's energy.

During the same period, coal production decreased by 73 percent, falling from 2.44 terawatt-hours to 0.67, and now accounts for less than one percent of the energy mix.

In 2024, Salmisaari and Finland's two remaining coal-fired plants, Vaskiluoto 2 and Martinlaakso 2, contributed only 0.8 percent of the country's energy.

Vaskiluoto 2 uses coal for only about 30 percent of its fuel. Martinlaakso 2, on the other hand, co-fires coal and biomass, and its operator plans to stop burning fossil fuel in 2026.

A third plant, Meri-Pori, remains in strategic reserve only for severe outages or emergencies until the end of 2026.

How Finland Nearly Eliminated Coal

Finnish Minister of Climate and Environment Sari Multala congratulated Helen and all energy companies in the country for their "determination" to end the use of coal.

"In 2019, Parliament almost unanimously passed the law prohibiting the use of coal for energy within ten years," Multala stated.

"At the time, the goal seemed challenging, but now that it has been achieved ahead of schedule, the law's approval appears very far-sighted."

A comprehensive set of policies was combined with targeted support measures, including a €22.8 million funding round in 2021, aimed at innovative energy technologies and investments.

According to a recent report by the Confederation of Finnish Industries, wind power is now "Finland's main driver of economic growth."

It accounts for €26 billion, or 44 percent of all planned green industry in the country in the near future.

"Imported fossil energy has been replaced by cleaner solutions that reduce climate emissions, while consumers benefit from lower energy prices," Multala added.

As Finland previously depended mainly on coal imported from Russia, the phase-out has also strengthened the country's energy independence and, consequently, national security.

Activists state that the law provided a clear signal to utilities and investors about the need for rapid change.

"Finland has shown what is possible when clear political signals are combined with rapid investments in renewable energy," says Cyrille Cormier, Deputy Campaign Director at Beyond Fossil Fuels.

"Wind power alone has more than covered the gap left by coal and fossil gas, demonstrating that renewable energy can be deployed quickly, especially when government policy creates the right conditions."

Activists Believe Finland Can Do More

Campaigns by the civil society group Coal-Free Finland played a key role in ensuring Salmisaari's closure.

Executive Director Minna Sumelius says their demands and those of the broader environmental community to phase out coal power were once considered impossible.

"However, the closure of Helsinki's coal-fired plants will cumulatively reduce Finland's total emissions by 5 percent," she declared. "This is a clear demonstration of the climate movement's transformative power."

But activists contend that the country can do even more, for example, regarding the Olkiluoto 3 nuclear power plant and the continued use of biomass.

"Finland is now on the threshold of a fossil fuel-free energy system. But the right way to finish the job is not with biomass, which can pollute as much as coal, nor with delayed and ridiculously expensive nuclear projects," says Cormier. "It is to double down on renewable energy and clean flexibility that maximize their potential."

OECD Countries Transitioning to Renewable Energy

Following the UK's coal phase-out last year, Finland's efforts represent a continuous transition among OECD countries away from coal.

In total, 14 OECD countries now operate coal-free energy systems, while another 13 aim to abandon its use by 2030.

In 2017, the UK and Canada created the Powering Past Coal Alliance (PPCA), a group of countries committed to advancing the transition to coal-free electricity generation worldwide.

Finland has been a member of the PPCA since its inception, and the alliance has now grown to 180 members, almost a third of the world's governments and 84 percent of OECD and EU governments.

"Finland's case confirms that accelerating the shift from coal to clean energy is in countries' best interest, as it increases energy security and fuels economic growth," says Julia Skorupska, Head of the PPCA Secretariat.

"It also shows that, thanks to bold commitments and proactive planning by governments, the transition from coal to clean energy can happen much faster than previously thought."

With new national climate targets, known as Nationally Determined Contributions (NDCs), expected by 2025, the PPCA states that all countries have the opportunity to commit to phasing out coal power and follow in Finland's footsteps.

"By committing to no new coal and phasing it out in their 2035 NDCs, countries can unlock investments in clean energy, thereby fueling economic growth, lowering electricity prices for consumers, and building resilience and independence, benefiting everyone," adds Skorupska.