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【News】Finland’s Last Coal-Fired Power Plant to Close in 2027

On June 24, 2026, Finnish energy company Fortum announced its decision to close and dismantle the Meri-Pori coal-fired power plant (565MW) as of March 1, 2027. Fortum and the City of Pori, where the plant is located, have agreed on a plan to develop the area into a clean transition industrial zone by utilizing the existing grid connection with the Meri-Pori plant.

The Meri-Pori power plant was commissioned in 1994. After the plant ended commercial operations at the end of March 2024, Finland’s National Emergency Supply Agency (NESA) dedicated it for use only in the event of severe disruptions or emergencies in the electricity system. During this two-year period, the plant did not generate electricity apart from test runs.

Furthermore, the Meri-Pori plant has not undergone necessary modernization processes for commercial purpose use and could not reach commercial profitability. While NESA procured coal for emergency use, they no longer consider the plant an appropriate route for achieving security of supply. Once the agreement with NESA ends at the end of 2026, the plant will return to the electricity market for the winter period of January and February 2027, after which it will be finally closed on March 1.

Renewable sources to support energy security

Due to the high heating demand during its long winters, Finland’s total energy consumption per capita is one of the world’s highest. Therefore, NESA is now preparing to procure reserve power generation capacity in a different form. While NESA has not announced its approach for replacing the energy capacity, its Energy 2030 program states the necessity to develop solutions for guaranteeing a stable supply of energy even in a fossil free society. This means that biomass, nuclear and wind power will replace the coal-fired back-up plant.

Apart from emergency condition preparations, wind power is growing at a significant rate and its share in Finland’s electricity generation reached 27.9% in 2025. At the same time, Fortum is proceeding with its strategy to exit coal-based energy production by the end of 2027 and already generates 99% of its power with renewable or nuclear energy.

Law to end use of coal and corporation strategies accelerate the move away from coal

These decisions align with the Act on Prohibiting the Use of Coal as an Energy Source (Law 416/2019), passed in 2019 to end the long use of coal in Finland’s electricity and heat production by May 1st, 2029. Practically, coal in Finnish energy production ended in Spring 2025, when two other Finnish energy companies closed their remaining domestic power plant units using coal.

At the time, the Minister of Climate and the Environment Sari Multala commented that the law “gave a strong signal of the direction of society,” but also that ending energy use of coal four years prior to the 2029 deadline is possible due to “the EU emissions trading system, state investment aid, Finland’s role as a founding member of the international Powering Past Coal alliance in 2017, and the ambition of energy companies to achieve climate targets.” The Minister’s comments clarified the importance of establishing legal obligations for companies to take climate change countermeasures, but also highlighted the potential of ambitious targets in the private sector.

Fortum has aligned its climate targets with the “Science Based Targets Initiative (SBTi)”, which boosted its decision to transition away from coal. SBTi is a corporate climate action initiative that supports companies and financial institutions in taking science-based climate action. Joining the program is one way for electric utilities to ensure their phase-out timelines are science-based and effective in achieving a net zero by 2040.

Transitioning existing infrastructure to clean industry

The City of Pori sees potential for a clean transition industrial zone in the Tahkoluoto area where the Meri-Pori coal power plant is currently located. Some of the strengths of the location are its existing energy infrastructure, proximity to one of the deepest ports on Finland’s coast, and the potential for large-scale projects with high electricity demand. The area will likely develop green hydrogen-based synthetic hydrocarbons and ammonia or green steel, as well as different stages of the battery industry’s value chain.

Ending coal-fired power generation earlier than scheduled demonstrates how accelerating the coal phase-out can be beneficial for society both publicly and privately, as retiring the outdated infrastructure opens up new economic opportunities. Private corporations taking the lead to phase-out coal according to the law may help accelerate the phase-out in countries like Japan, that continue to rely on coal-fired power.

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