Coal Use in Helsinki’s District Heat Production Ends – Heat Prices Continue to Decline
Helen has published the district heating energy fee* for July–December 2025 and the energy price forecast for January–June 2026. The average total price of district heating, excluding VAT, is expected to decrease by approximately 6.1% compared to 2024. This decline is primarily driven by the introduction of new heat production methods and the complete phase-out of coal-based production. The flexible district heating product launched earlier this year has also attracted strong customer interest.
The coal era in Helsinki’s heat production came to an end on 1 April 2025, when the Salmisaari coal-fired power plant was shut down for the last time. This marks a significant milestone in Helen’s clean transition.
“Phasing coal out of our production portfolio is a major and concrete step toward carbon-neutral energy production. As a result, our carbon emissions are now extremely low. The pace of our transition has been rapid—our emissions have dropped by 80% compared to 1990 levels in just a few years,” says Timo Aaltonen, Senior Vice President of Heating and Cooling at Helen.
Helen aims to be carbon neutral by 2030 and has made substantial investments in clean energy, making it one of Finland’s largest industrial investors last year.
“We are strongly advancing our clean transition goals. In 2024 alone, our investments in carbon-neutral energy totaled approximately €565 million,” Aaltonen adds.
These investments are also benefiting customers, as the new clean production solutions are more competitive and help reduce the price of district heating.
“Our clean transition enables us to lower the price of district heating. With our flexible capacity, we can take advantage of favorable market prices and pass those savings on to our customers. While prices are currently falling during the transition phase, they will eventually stabilize,” says Aaltonen.
New production methods have also enabled new types of district heating products. One example is Optimilämpö, launched earlier this year, which has exceeded expectations in demand.
“Optimilämpö, representing the next generation of district heating, has generated tremendous interest. We expect it to become our most popular product. Its key advantage is its ability to optimize heating and reduce overheating – making it our most affordable product in terms of energy price. It requires no upfront investment or learning from the customer, as AI automatically adjusts the temperature to the desired level. The new district heating is just as easy and worry-free as ever,” Aaltonen summarizes.
District Heating Pricing Structure
Since the beginning of 2024, the total price of district heating has consisted of a fixed basic fee and a variable energy fee. The customer-specific basic fee is determined annually based on usage capacity and remains unchanged for one year at a time. There will be no changes to the basic fee pricing effective 1 July. The basic fee ensures uninterrupted heat delivery and sufficient capacity even during the coldest winter days.
The monthly energy fee is based on the amount of heat energy used and its price. The more a property is heated and hot water is consumed, the more energy is used. The energy price forecast for January–June 2026 will be confirmed, and the forecast for July–December 2026 will be published in November 2025.
*Applies to the energy prices of Kuukausilämpö Kiinteistö and Kuukausilämpö Koti products.