On April 1, 2025, Finland made energy history by shutting down the Salmisaari coal power plant in Helsinki, effectively ending the country’s reliance on coal for electricity and heat production.
This landmark achievement came four years ahead of the government’s original 2029 deadline and represents one of the most successful coal phase-outs in the world.
The Final Coal Plant Closes Its Doors
The Salmisaari plant, operated by energy company Helen, was Finland’s last active coal-fired facility producing electricity and heat for daily use.
The 175 MW electricity and 300 MW heat capacity plant had been serving Helsinki’s energy needs, but its closure signals a complete transformation of Finland’s energy landscape.
Helen’s CEO Olli Sirkka emphasized the significance of this moment, noting that while some emergency coal reserves remain for crisis situations, this was truly the end of regular coal-based energy production in Finland.
The closure ceremony even featured colorful memorial smoke signals from the retiring chimney between 9 a.m. and noon on April 1st.
But here’s the deal – this wasn’t just about shutting down one plant. The closure represents a 50% reduction in Helen’s carbon dioxide emissions compared to 2024 and will cut Finland’s total national emissions by nearly 2%.
A Remarkable Energy Transformation
Finland’s journey away from coal has been nothing short of extraordinary. In 2003, coal accounted for 23% of Finland’s energy mix.
By 2025, that figure plummeted to less than 1%. This dramatic shift didn’t happen overnight – it was the result of strategic planning, significant investments, and strong political commitment.
The transformation accelerated dramatically in recent years. Coal’s share in Helen’s district heating production alone dropped from 64% in 2022 to virtually zero by 2025. That’s why this achievement stands as a testament to what’s possible when policy, technology, and determination align.
Wind power has been the star of Finland’s renewable energy story. Since 2020, wind capacity has more than doubled, now supplying 25% of the country’s electricity. Over the same period, coal generation dropped by 73%, from 2.44 terawatt hours to just 0.67.
The Policy Foundation That Made It Possible
Finland’s success stems from the groundbreaking Coal Ban Act of 2029 passed in 2019 – the first legislation of its kind in the world.
This law provided the regulatory framework that accelerated the transition away from coal and gave energy companies the certainty they needed to invest in alternatives.
The policy worked hand-in-hand with massive investments in clean energy infrastructure. Finland attracted €26 billion in green industrial investment, transforming its energy sector while creating jobs and economic opportunities.
You’re better off understanding that this wasn’t just about environmental goals – it was about energy security too. Finland had been heavily reliant on imported coal, much of it from Russia. The shift to domestic renewable sources has dramatically improved the country’s energy independence.
What Replaces Coal Power
Finland’s energy mix now relies on a diverse portfolio of clean sources:
- Biofuels and waste: 31% of total energy supply
- Nuclear energy: 28% of total energy supply
- Oil: 22% of total energy supply
- Wind power: 25% of electricity generation
To replace the Salmisaari plant’s capacity, Helen will use electricity, heat pumps, waste heat recovery, and biomass.
The company has ambitious plans to eliminate all forms of combustion by 2040, with emissions targeted to fall to just 5% of 1990 levels by 2030.
Economic Benefits Surprise Everyone
Here’s the catch that many didn’t expect – going green actually saved money. Despite the massive transition costs, Finland maintains the third-lowest electricity prices in Europe, trailing only Sweden and Norway. Helen even anticipates an average reduction of 5.8% in district heating prices for customers.
CEO Olli Sirkka explained that the clean transition improved competitiveness by investing in energy system flexibility and shifting to green solutions. This allowed the company to operate more profitably while keeping customer prices low.
That’s why Finland’s approach proves that environmental responsibility and economic competitiveness can go hand in hand.
The country attracted significant industrial investments requiring substantial amounts of clean electricity, creating a positive economic cycle.
Global Impact and Future Outlook
Finland’s achievement sends a powerful signal to the rest of Europe and the world. The country’s success demonstrates that rapid decarbonization is not only possible but can be economically beneficial when done strategically.
Environmental campaigners from Coal-Free Finland, who played a key role in securing the closure, noted that demands once considered impossible have become reality. Executive director Minna Sumelius highlighted that closing Helsinki’s coal plants will cumulatively reduce Finland’s total emissions by 5%.
But here’s what comes next – campaigners argue that Finland should double down on rapidly scalable renewables rather than relying on delayed nuclear projects or biomass that can pollute as much as coal. The focus should be on maximizing the potential of wind, solar, and clean flexibility technologies.
Lessons for the World
Finland’s coal phase-out offers valuable lessons for other countries pursuing similar transitions. The combination of clear policy signals, massive renewable energy investments, and strategic planning created the conditions for success.
The country’s approach shows that energy security, environmental protection, and economic competitiveness don’t have to be competing priorities. When properly managed, the transition to clean energy can strengthen all three simultaneously.
Want me to emphasize the most important takeaway? Finland proved that ambitious climate goals can be achieved ahead of schedule while maintaining affordable energy prices and attracting industrial investment. This success story provides a roadmap for other nations looking to phase out coal and embrace a clean energy future.
As coal ships disappear from Helsinki’s ports and the last smoke signals fade from the Salmisaari chimney, Finland enters a new era of energy independence and environmental leadership. The country’s achievement stands as proof that the clean energy transition is not just necessary – it’s profitable, practical, and achievable.