Sustainability review 2023

Milestones 2023

Strategic shift and business focus

In 2023, Ilmatar evolved from a Finnish wind power company into a Nordic independent power producer, focusing on the development, construction, and operation of wind and solar power plants. The company sold its consumer electricity business to Väre.

Leadership change

A new CEO started at the beginning of 2023 amid the energy crisis, and the company navigated the challenging market situation by leveraging advancements in the Nordic energy transition.

Energy sector market situation

Although the energy markets were no longer in the same crisis as in 2022, geopolitical tensions continued to create instability likely to persist for a long time. Despite this, Ilmatar continued to implement its strategy to accelerate the green transition.

Successful projects

Ilmatar brought several wind farms into commercial production, including projects in Somero, Karvia, Isojoki, Kristiinankaupunki, and Alajärvi, as well as a solar power plant in Jorois. All projects are developed, constructed, and owned by Ilmatar, with some even completed ahead of schedule.

Expansion of project development and operations

The company achieved success in project development across all its markets, significantly expanding its project development portfolio, especially concerning solar power projects. Development of offshore wind power also progressed as planned.

New business opportunities

In 2023, Ilmatar identified several new business opportunities, particularly related to energy storage solutions and hydrogen. The completion of several production facilities allowed for the development of asset management to meet the growing production capacity needs.

Significant financing and investment decisions

Ilmatar secured €500 million in financing to increase renewable energy production in the Nordics. The company also made final investment decisions for two wind farms, Korpilevonmäki in Säkylä and Pahkakoski in Ii, which together include a total of 36 new turbines. These were practically the only investment decisions for wind farms in Finland in 2023.

New construction method: TCI model

The Pahkakoski wind farm is being built using the TCI contracting model (Transport, Crane, and Installation), which is commonly used in the United States. This project is one of the first large-scale implementations of this model in Europe.

Market challenges

The volatility of the electricity market continued in 2023, with the average electricity price dropping by more than 50% compared to 2022. This, coupled with rising capital costs, created pressure on both revenue and operating margin. However, market prices remained slightly higher than before 2022.

Strong market position

Ilmatar maintained a strong position in the challenging market environment, emphasizing its unique role as an independent power producer operating throughout the entire lifecycle of production facilities. In 2023, the company grew to become the largest producer of renewable electricity in Finland and a significant supplier. In Sweden, Ilmatar is the largest solar power project developer.

PPA production and market management

A portion of Ilmatar’s production is based on power purchase agreements (PPAs), which are increasing and are expected to cover 70% of the company’s production by 2027.

Growth of personnel and development of company culture

The workforce grew to 115 top professionals in 2023. While the company culture evolved, it retained a warm atmosphere. Based on positive results from the Siqni employee survey, process improvements will continue in 2024.

Responsibility and ESG strategy

In 2023, Ilmatar conducted a double materiality analysis and a human rights due diligence assessment, laying the groundwork for its ESG strategy for 2024-2027. The company achieved a positive climate impact through its renewable energy production.

Commitment to the UN global compact initiative

Ilmatar reaffirmed its commitment to the UN Global Compact initiative and its ten principles regarding human rights, labor, the environment, and anti-corruption. International commitments strengthen the credibility and transparency of the company’s ESG efforts.