Oulun Seudun Sähkö uses multi-market optimization to save money and reduce emissions

Gasum and Oulun Seudun Sähkö (OSS) have started cooperation in multi-market optimization (MMO), which will help OSS to use district heat production modes with the lowest possible emissions. The solution also includes a power market trading service provided by Gasum allowing OSS to buy the cheapest production hours on the electricity market, which in turn generates significant cost savings.

Multi-market optimization enables OSS to use a wide range of energy sources and markets, thereby reducing its dependence on individual options and in turn reducing the risks of price volatility. The MMO service provided by Gasum employs some of the most advanced optimization methods on the electricity market and covers the entire electricity production value chain.

”Gasum has long been providing us with electricity market advisory services, which have given us significant economic benefit. The multi-market optimization solution will enable us to optimize district heat production so that we use the most cost-effective forms of production with the lowest possible emissions. This will significantly support our carbon neutrality ambitions,” says Jukka Kaakinen, Energy manager at Oulun Seudun Sähkö.

Gasum has 15 years of experience in electricity market demand response, market optimization and trading services. The MMO service currently employs around 30 people, including 14 people at the 24/7 energy desk.

Electricity trading plays a key role in multi-market optimization

District heat production at Oulun Seudun Sähkö uses several low-emission production methods, such as electric boilers, air-to-water heat pumps and energy produced by the Liminka solar power park. OSS aims to be carbon neutral by 2025 and has, for example, stopped burning peat in its energy production since the beginning of 2025.

District heat production volumes are so large that electricity trading is needed to optimize production. The electricity trading process operated by Gasum enables OSS to forecast the following day's electricity consumption needs, after which it can procure the cheapest hours on the electricity market through spot trading.

Guarantees of origin for electricity also play a major role in district heat production at OSS. Guarantees of origin for electricity are a way of ensuring that electricity is produced from renewable energy sources. Gasum manages OSS’s Guarantees of Origin portfolio and ensures that guarantees of origin are properly created and processed.

“An analyst at Gasum monitors the development of the electricity market on a weekly basis and provides us with up-to-date market situation information. Price assurance is also a key part of the service, as it hedges electricity production at the best possible price to ensure district heat production profitability,” Jukka Kaakinen says.

Growing share of renewable energy on the market increases price volatility

Energy commodities like electricity involve a growing number of risks, including uncertainties about prices, availability and origin, as well as political factors. The share of renewable energy on the energy market is growing at an unprecedented rate and fluctuations in its production add to price volatility.

Electricity prices fluctuate widely and are challenging to predict, making preparedness a key competitive advantage. Gasum's multi-market optimization solution supports this need by reducing customer energy costs, enhancing market flexibility and improving price risk management.

Optimizing energy production and consumption is becoming essential to improve demand response as the share of renewable energy increases. The 15-minute balance settlement, i.e. electricity price fluctuations formed in 15-minute cycles, further underscores the benefits of a systematic optimization process.

”Multi-market optimization means that we are better able to manage electricity price volatility and increase flexibility. The electricity trading service and intraday trading are key to achieving our emission reduction targets,” says Jukka Kaakinen.