Finland's last coal-fired power and heat plant is set to shut down on Tuesday, enabling Helsinki energy group Helen to reduce emissions and lower energy costs for customers. The decision comes as Finland's renewable energy production, particularly from wind and solar, has surged, leading to a decline in coal use after a 2019 law banned its use from 2029.

A general view of Finland's last continuously operational coal-fired power and heat plant, owned by Helsinki energy group Helen, on its last active day before it is closed down permanently on Tuesday April 1, 2025, in Salmisaari, southwestern Helsinki, Finland March 31, 2025.

Helen, owned by Helsinki, plans to replace the plant's output of 175 MW of electricity and 300 MW of heat with a combination of electricity, waste heat, and heat pumps, while still burning pellets and wood chips. CEO Olli Sirkka mentioned long-term goals to eliminate all coal use by 2040 and reduce emissions to 5% of 1990 levels by 2030.

However, concerns remain about the cost implications of moving entirely to clean energy. Despite Europe's third-cheapest electricity prices, Helen expects an average 5.8% decrease in district heating costs for customers this year. The shutdown will slash carbon dioxide emissions by 50% and reduce Finland's total emissions by nearly 2%. Environmental groups, like Beyond Fossil Fuels, note that while Finland is nearly coal-free, a few plants still operate, highlighting the transition's challenges.