Finnish Energy (ET) is a branch organization for the energy sector’s industrial and labor market policy. It represents companies that produce, procure, distribute, and sell electricity, gas, district heat and district cooling, and related services.
VALOR’s research was conducted as part of the Electricity Research Pool established for the development of research in electrical power engineering, electricity transmission and distribution, and the related service production, and other research serving the energy industry.
The survey was conducted through desk studies and comprehensive interviews with the value chain participants (Distribution System Operators (DSO), construction and engineering companies, retailers, the authorities, and some other interest groups). A total of 33 interviews and 260 documented remarks was implemented.
The main VALOR research findings were as follows:
- Many and various business models are in use in this value chain. These were analyzed.
- Knowledge of the total value chain is very limited, and the participants are unaware of how the business value is developing in the chain.
- Most of the economic value is collected by DSOs. The other value chain participants collect little.
- The regulation model mostly defines earnings for value chain participants – the model must be updated soon.
- Construction companies must reinvent and develop their business models to differentiate their services from those of their competitors—service development investments are currently marginal.
- Multiple development opportunities related to the electricity network construction value chain were identified.
- All the highlighted development opportunities offer potential for efficiency improvement and are thus relevant for the industry.
Interest in platform business models has grown over the last three years, and the platform economy is perceived to have considerable potential in electricity grid services. However, there is a limited number of concrete ideas for the implementation, and no significant platform economy projects are under development. The study identified several application areas where the platform economy model makes it possible to create value.
Please contact Aappo Kontu, Senior Advisor, for more information.
You can find the full research paper here.
Taaleri is a Finnish financial services company, whose parent company, Taaleri Plc, is listed on Nasdaq Helsinki main market. At the end of 2020, Taaleri had assets under management totaling EUR 7.6 billion and over 6,000 wealth management customers.
In March 2021, Taaleri announced its revised strategy. In 2021-2023, Taaleri’s growth is driven by private equity funds focusing on renewable energy and other alternative investments. Taaleri’s vision is to be a Nordic forerunner in alternative investments focusing on sustainability.
VALOR was privileged to contribute to the strategy process, especially scrutinizing investment opportunities in renewable energy and bioindustry in the coming years. The scope included multiple extremely interesting and timely topics, such as biorefineries and hydrogen. The team focused on Europe and North America.
Please contact Henrikki Palva, Managing Partner for more information.
Read more:
https://www.taaleri.com/en/news/taaleri-revises-its-strategy-and-updates-its-long-term-financial-targets-growth-driven-private-equity-funds-focusing-renewable-e
https://www.taaleri.com/application/files/6016/1648/8317/TAALERI_CMD_2021.pdf
Imatran Seudun Sähkö is a Finnish, medium-sized electricity company whose main ownership is owned by private individuals and companies. Imatra FNW Oy, a wholly owned subsidiary of the company, sells the entire share capital of its Estonian subsidiary Imatra Elekter to Eesti Energia’s subsidiary Elektrilevi OÜ.
Elektrilevi is part of Eesti Energia and is the largest electricity distribution company in Estonia. Imatra Elekter offers energy services to 25 000 customers in Western Estonia and Viimsi.
The acquisition will be confirmed when the Estonian Competition Authority approves the transaction at the end of this year.
Please see below for more details in a press release:
https://www.issoy.fi/konserni/uutiset/imatran-seudun-sahko-myy-tytaryhtionsa-virossa
VALOR advised Caverion, Arina and Oulun Energia in the development of a new strategic concept that utilizes the condensation heat from stores’ refrigerator systems. This concept enables the production of carbon-neutral district heating in the local network. The expansion of this concept could mean an efficiency improvement in district heating production of up to 5%, and a 10% decrease in the carbon dioxide emissions created by district heating production nationally.
Caverion is a technology provider that specializes in user-friendly and energy-efficient building systems. They design, install, maintain, and update all the technical systems of properties. Sustainable and ecological development drive how Caverion operates. In this project, Caverion was the technology provider for the concept.
Osuuskauppa Arina is a customer-owned Finnish network of companies in the retail and service sectors, based in Northern Finland. They have around 170 service points and 2,700 employees. Arina is part of S-Group. In this project, Arina was the initial store location provider for the pilots.
Oulun Energia is the leading energy company in Northern Finland. They employ nearly 400 energy professionals, and their operations cover the entire value chain of the energy industry, from the production of raw materials, energy and heat to sales and distribution. In this project, Oulun Energia was the energy provider.
Please contact Kalle Ahlstedt for more information.
Please see below for more details in a press release:
https://www.caverion.com/newsroom/releases/2021/how-to-reduce-carbon-dioxide-emissions-from-district-heating-by-up-to-10–caverion-and-its-partners-develop-innovative-solution-in-finland/
Esperi Care is one of the largest private providers of social care services in Finland. After strategic review of service its portfolio, Esperi decided to focus on its core residential businesses and divest children and family services.
VALOR was mandated by Esperi as the exclusive sell-side financial advisor in the divestment process. VALOR was well positioned to leverage its social care sector experience and extensive M&A capabilities in the transaction.
Please contact Jussi Ailisto, Partner for more information.
Read more:
Esperi Care keskittää toimintaansa – luopuu lasten ja perheiden palveluista
OptiWatti is a forerunner in energy management systems. The IoT solution is optimizing energy usage with a smart and predictive heating control system. The objective of Voimatel is to leverage the platform to build a leading total energy management solution for industrial real estate.
Please see below for further details of the transaction:
https://www.voimatel.fi/voimatel-yrityskaupalla-energiahallinnan-edellakavijaksi/
Nevel owns and operates over 130 heating and power plants and over 40 district heating networks in Finland, Sweden and Estonia. Nevel’s net sales in 2019 was 101 million euros.
VALOR was responsible for providing full-suite buy-side advisory including responsibility for financial modelling and valuation, process strategy and tactics, deal structuring, negotiations with seller, due diligence coordination, and support in transaction documentation.
The transaction leveraged VALOR’s unique combination of deep energy sector knowledge with excellent M&A and process capabilities, and further solidifies VALOR’s position as one of the leading Nordic independent investment banks in energy infrastructure.
Please contact Jonas Seemer, Partner (+358 50 564 9846, jonas.seemer@valor.fi), for more information.
Please see below for further details of the transaction.
VALOR served as the sole financial advisor to the consortium comprising Vantaan Energia, Infranode and KEVA in the acquisition of the district heating business in Järvenpää and Tuusula from Fortum.
Please contact deal team lead Partner Jonas Seemer for more information.
We are very pleased to have supported the consortium in this synergistic acquisition. Congrats to the new and happy owners and a big thanks for the excellent cooperation to the seller!
Fortum to sell its district heating business in Järvenpää, Finland for approximately EUR 375 million.
Canorama is a Finnish B2B ICT services provider and will help Lounea grow its B2B business.
Read more: https://lounea.fi/lounea-kasvaa-ict-ratkaisuissa-ostaa-canorama-oyn-folmerilta
We have been eagerly following the Nordic IT sector during the recent market turbulence and discussed with key decision makers. Here are our thoughts on the effects of this market discontinuity caused by COVID-19, and emerging opportunities to win market share.
