Hydropower, Kemijoki, Finland

The combined capacity of the power plants amounts to over 1,100 MW. In 2013, the Kemijoki hydropower plants generated 4,126 gigawatt hours of electricity in total, or approximately one third of all hydropower-generated electricity in Finland.

Caverion is now in charge of the operation and maintenance of the 16 Kemijoki hydropower plants situated within the Kemijoki water system.

The new operating model helps us in renewing operations and adjusting to changing needs. The company’s future investments will focus on sustainably developing the existing production system.  We succeeded in reaching an understanding with Caverion regarding the extent and qualitative content of services. In our selection criteria, we placed special focus on experience and resources, service execution and sustainable operations.

Tuomas Timonen, President and CEO, Kemijoki Oy

Kemijoki Oy is the most significant generator of hydropower in Finland. The company owns 20 hydropower plants, of which 16 are located in the Kemijoki water system, two in Lieksanjoki and two in Kymijoki. In addition, the company regulates the Lokka and Porttipahta reservoirs as well as lakes Kemijärvi and Olkkajärvi.

Geschäftsbereiche

  • Managed Services
  • Wartung & Instandsetzung
  • Projektmanagement

Gewerke

  • Produktionstechnische Anlagen
  • Automatisierung und MSR

Kundensegmente

  • Industrieunternehmen
  • Energiewirtschaft

Gebäudetyp

Challenge

  • The operation of Kemijoki was strongly influenced by the changing investment needs. The major renovations and capacity increases of the Kemijoki hydropower plants approached completion, and the future of new hydropower products was uncertain.
  • Securing the extensive hydropower expertise of the Kemijoki company in the changing operating environment had to be ascertained.
  • It was necessary that Kemijoki Oy could adjust its operations and cost structure to meet future conditions.
  • Corporate responsibility, a crucial part of the operations, also had to be taken into consideration when implementing the new operating model. Kemijoki Oy had to consider all these factors when formulating the new operating model.

Solutions

  • In the new operating model, Kemijoki Oy focuses on operating the existing hydropower plants responsibly and on excellence in operations financially.
  • To attain the operation and maintenance objectives and to secure future competence, Kemijoki decided it was best to outsource this part of its operations to Caverion.
  • To ensure smooth integration, Kemijoki and Caverion executed a collaborative controlled handover project with Caverion in charge.  The plan was prepared in great detail, ensuring a smooth handover without any production impact.
  • The corporate responsibility aspect of the new operating model was introduced to stakeholders by the CEOs of Kemijoki and Caverion.
  • To ensure that Kemijoki Oy was able to adopt its own operating model throughout the organisation from the outset, it was also necessary to make sure that ongoing projects to increase capacity were transitioned without disturbance to the new operating model. To ensure this could be achieved, the responsibilities were also transferred to Caverion.
  • The importance of corporate responsibility was highlighted in the integration, and efficient communication was a priority for both parties. The integration made use of established Caverion resources, who were put in charge of the handover from the outset, enabling for the new operator smooth access into the operation.

Timeline

The cooperation started in 2014.

Contractual details

Under the agreement, around 80 Kemijoki Oy employees were transferred to Caverion Industria Oy. The integration process succeeded according to plan and caused no interruptions or other unwanted impacts on Kemijoki’s operations.

Caverion service details

  • Work safety responsibilities and safe practices
  • Local operation and maintenance of the 16 Kemijoki hydropower plants
  • Reserve power plants
  • Execution of contractual installation, inspection and monitoring duties
  • Planning, implementation and control duties on stand-alone projects
  • Procurement
  • Work safety responsibility at plants also vis-à-vis visitors and subcontractors
  • Cooperation with various stakeholders in corporate communication issues