In 2015, the power distribution business segment at VEO entered a phase of strong growth. During the year, VEO had around 60 substation projects ongoing in different stages, and altogether this accounts for approximately 40 percent of VEO’s total turnover. What is then the secret behind this remarkable growth?

“There are two obvious reasons,” says Fredrik Grankull, Vice President, Substations Business Unit.

“Firstly, there has been a building boom in the field of wind power in Finland, and this has led to an increased demand for substations, as well as a need for strengthening the regional and national networks. Secondly, the demand for higher availability and shorter delivery interruptions has meant that the distribution networks need to be weather proofed; overhead lines are changed into underground cabling. Moreover, smart grid solutions are implemented and regional networks are strengthened. This has spurred the investments in new substations and the upgrades of existing substations.”

The current incentive program for wind power in Finland has now expired, which has slowed down or even stopped investments in the sector.

“It would be of outmost importance that we would get a new incentive program in place. This would initiate new projects, push through on-going projects and encourage new investments in renewable energy in our country,” says Grankull.

The renewal of the national and regional power grids carries on with the same intensity as earlier. Moreover, Sweden has recently initiated a regulation similar to the one in Finland, and this gives VEO excellent opportunities in the Swedish market. ”There is definitely an unmet need for renewal of the power grids in Sweden, and that is something we can benefit from. Sweden is after all our neighbouring market,” says Grankull.

VEO is also active in the Norwegian market, where many substation projects are under work this year.

“In spite of the fact that Norway doesn’t have any subsidies for wind power, and even though the price of electricity is low, large investments in wind power are underway. This is partly due to the favourable wind conditions and partly due to the demand for renewable energy among numerous foreign investors,” explains Grankull.

The first part of 2016 has seen continuous activity in the power distribution business segment, and sales are currently exceeding the budget. In March 2016, VEO received strong recognition for their competence by the Finnish transmission system operator, Fingrid, when being upgraded from B-supplier to A-supplier up to 400 kV.

“The upgrade meant good marks for our entire organisation and for this I am very proud. Moreover, the upgrade is a quality label, which we can utilize also in the Swedish and Norwegian markets.