At EnergyWeek 2025, the “Transforming the Energy Landscape” seminar addressed the evolving challenges of rural energy supply.
Ingvar Kulla, Managing Director of Esse Elektro-Kraft, outlined the difficulties small energy providers face as electrification accelerates and renewable energy adoption increases. While demand-side flexibility is often seen as a solution, Kulla noted its limitations. “Flexibility is a solution but not the whole solution to the problems,” he remarked, emphasizing that a more robust energy system requires diversified renewable sources and improved storage capacity.
A regional energy provider at a crossroads
Esse Elektro-Kraft Ab, founded in 1925, is a Finnish energy company headquartered in Ähtävä, within the municipality of Pedersöre. It has long been a key electricity provider in the region, serving areas including Pedersöre, Kortesjärvi, Alahärmä, Nykarleby (Markby), and Kronoby (Jeussen). The company has built a financially stable and regionally significant operation, reporting a turnover of €8.02 million in 2023 with a net profit margin of 14.21%.
Esse Elektro-Kraft’s commitment to modernizing rural energy has not gone unnoticed. In 2017, the company was recognized by Kauppalehti as a “Menestyjä” (Achiever)—an award given to Finnish companies demonstrating strong financial performance, operational efficiency, and market resilience. The accolade reflected not only the company’s solid business foundation but also its forward-thinking approach to integrating renewable energy solutions into a traditionally conservative sector.
Despite its strong financial foundation, the company—like many rural energy providers—faces rising demands for electrification and grid modernization. With an increasing share of renewable energy sources (RES) coming online, managing supply fluctuations while keeping distribution costs under control has become a pressing concern.
Balancing renewables and storage
Esse Elektro-Kraft is already integrating solar and hydro power to manage seasonal energy variations. In Ytteresse, the company, in partnership with Solnet Group, has converted a former mink farm into a solar park, covering 11 hectares and housing 3,700 solar panels with a total capacity of 2 MW. The facility is expected to generate 1,800 MWh annually, helping to stabilize energy supply, particularly in the summer when hydroelectric production from the Esse River declines.
However, as Kulla highlighted, storage remains a critical missing piece. “In order to integrate renewable, we need energy storage from day to day or week to week,” he said, pointing to the need for better ways to balance supply and demand. The company has begun deploying battery energy storage systems (BESS), using recycled automotive batteries to stabilize the grid, but larger investments will be needed to meet future demands.
The PEAK project: A testing ground for rural energy
To explore solutions, Esse Elektro-Kraft is participating in the PEAK project, led by the University of Vaasa and Aktion Österbotten. The initiative examines how rural grids can integrate multiple renewable sources, handle increased electrification, and develop smarter flexibility mechanisms. With rural grids under increasing pressure, the project provides a platform to test sector coupling, grid investments, and pricing models that could shape the future of decentralized energy.
Ingvar Kulla’s remarks today underscored the fact that while demand-side solutions are useful, they are not enough to solve the deeper structural issues in rural energy supply. The question remains: how quickly can smaller providers integrate renewables in a way that is both practical and financially sustainable?
As the seminar wrapped up, it was clear that there are no easy answers. Collaboration, investment, and policy support will all play a role in determining how rural energy systems move forward. For now, companies like Esse Elektro-Kraft are taking steps in the right direction—but how far and how fast they can go remains an open question.
Here you can find the full program for EnergyWeek and register for events.
