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Smart Grid Working Group’s proposals aim for a flexible, customer-driven electricity system

Ministry of Economic Affairs and Employment
Publication date 24.10.2018 9.30 | Published in English on 25.10.2018 at 12.54
Press release

More distributed generation opportunities for different kinds of energy communities, such as housing companies, commercialisation of the ownership and use of energy storages, more customer influence over transmission fees, and the opening of the current rigid demand response systems to competition. These are some of the measures proposed by the Smart Grid Working Group. It submitted its final report to Minister of the Environment, Energy and Housing Kimmo Tiilikainen on 24 October 2018.

Climate change mitigation will significantly increase electricity generation from intermittent renewable energy sources, while adjustable fossil fuel-powered electricity generation will gradually go out of use. This energy transition will test the electricity system in many ways. The Ministry of Economic Affairs and Employment appointed a Smart Grid Working Group in autumn 2016 to find solutions to this challenge.

“Weather-dependent modes of power generation are emission-free, but they need a flexible system responding to excess supply or shortage of wind and solar power. The key is a more flexible and smart system that allows customers to influence the market through their choices and by supplying the market with their own power generation and storage potential,” says Minister Kimmo Tiilikainen.

The Smart Grid Working Group was tasked to formulate a vision of a smart electricity system of the future and the opportunities it offers for customers and society. It was also commissioned to give concrete proposals for increasing customer participation in the electricity market and for improving the security of electricity supply. The group was appointed for a two-year term and included representatives from public authorities, interest groups and the research community.

In its final report, the Smart Grid Working Group proposes measures that would streamline the roles and rules in the electricity market, allow market-based incentives, create sufficient technical conditions for demand response, and increase collaboration across sectors to promote flexibility. The proposals cover altogether 11 themes.

Key proposals by the Smart Grid Working Group

“The working group would increase considerably the options available for customers to manage their electricity consumption and produce more electricity themselves. However, it also takes into account the importance of overall market development and of greater flexibility. The proposals are very commendable,” Minister Tiilikainen said.

“By increasing competition and customers’ possibilities to influence their electricity bill we can make sure that we have a reliable, cost-effective and environmentally friendly electricity system in the future,” said the working group chair Tatu Pahkala from the Ministry of Economic Affairs and Employment.

More information:
The event will be webcast live on 24 October at 9.30–11.30 and a recording will be later available at
The final report of the Smart Grid Working Group is available online at
Surveys commissioned by the Smart Grid Working Group are available online at

Vilhartti Hanhilahti, Special Adviser to the Minister of the Environment, Energy and Housing, tel. +358 40 836 4823
Tatu Pahkala, Senior Adviser, Ministry of Economic Affairs and Employment, tel. +358 29 506 4217 (chair of the working group)

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