Southwest Finland Awards €14.5 Million Electricity Supply Contract

The Wellbeing Services County of Southwest Finland (Varsinais-Suomen hyvinvointialue) has awarded a €14.5 million electricity supply contract to Turku Energia Energiaratkaisut. The four-year contract, running from January 2028 to December 2031, covers electricity supply for the region's healthcare facilities and public services.

Introduction

Healthcare facilities require reliable and cost-effective electricity supply to maintain essential services, from lighting and heating to medical equipment and IT systems. The Wellbeing Services County of Southwest Finland has taken a strategic approach to securing its electricity supply through a competitive procurement.

The contract, valued at €14.5 million, has been awarded to Turku Energia Energiaratkaisut, a regional energy company based in Turku. The four-year contract runs from January 2028 to December 2031, providing price stability and security of supply for the region's healthcare facilities.

This procurement ensures that the region's hospitals, health centres, and other public facilities have access to reliable electricity at competitive prices.

Why This Contract Matters

Electricity is a critical utility for healthcare facilities, powering medical equipment, lighting, heating, and IT systems. Stable and cost-effective electricity supply is essential for delivering quality healthcare services.

This contract matters because it:

• Secures healthcare electricity supply: Ensures reliable power for hospitals and health centres
• Provides price stability: Four-year contract with fixed margins
• Covers the entire region: Serves all healthcare facilities in Southwest Finland
• Significant value: €14.5 million contract
• Local supplier: Turku Energia is a regional energy company
• Price-only evaluation: Lowest price was the selection criterion
• Competitive process: Four bids received

Contract Timeline

• Contract award notice published: 12 August 2026 (OJ S 154/2026)
• Previous notice referenced: 851497e4-367a-43c8-87f9-a28516459f17-01
• Winner chosen: 17 June 2026
• Contract concluded: 3 August 2026
• Coverage start date: 1 January 2028
• Coverage end date: 31 December 2031

Contract Overview

The Wellbeing Services County of Southwest Finland conducted an open procedure for this procurement. The contract covers the supply of electricity to the region's healthcare facilities.

Key features include:

• Single lot: Electricity supply
• Duration: 4 years (1 January 2028 – 31 December 2031)
• Value: €14,507,350.00
• Evaluation: Price only (100%) – lowest price
• Winner: Turku Energia Energiaratkaisut
• Pricing structure: Monthly billing based on margins, quarter-spot delivery, and power-based price hedging

Key Contract Details

Detail	Information
Contracting authority	Varsinais-Suomen hyvinvointialue (Wellbeing Services County of Southwest Finland)
Winning bidder	Turku Energia Energiaratkaisut
Contract subject	Electricity supply (CPV 09310000)
Procedure type	Open procedure
Legal basis	EU Directive 2014/24/EU
Awarded value (ex-VAT)	€14,507,350.00
Contract duration	4 years (1 Jan 2028 – 31 Dec 2031)
Bids received	4
EU funding	None
Covered by GPA	Yes
Evaluation criteria	Price only (100%) – lowest price
Subcontracting	No
Supplier location	Turku, Finland

Project Scope

The contract covers the supply of electricity to the Wellbeing Services County of Southwest Finland's facilities. The scope includes:

Electricity Supply

• Service area: Varsinais-Suomi (Southwest Finland) region
• Facilities: Hospitals, health centres, and other public facilities
• Duration: 4 years (1 January 2028 – 31 December 2031)

Pricing Structure

• Monthly billing: Electricity is invoiced monthly
• Margins: Price is based on the supplier's margins
• Quarter-spot delivery: Delivery based on quarter-spot pricing
• Power-based hedging: Price hedging to reduce price risk
• Pass-through costs: Fingrid balancing service fees and Datahub site-specific fees are passed through

About the Contracting Authority

Varsinais-Suomen hyvinvointialue (Wellbeing Services County of Southwest Finland) is a regional authority responsible for organising public health, social welfare, and rescue services in the Southwest Finland region. The organisation operates hospitals, health centres, and other healthcare facilities across the region, requiring reliable and cost-effective electricity supply.

About the Winning Company

Turku Energia Energiaratkaisut is a Finnish energy company based in Turku, part of the Turku Energia group. The company provides electricity, district heating, and energy solutions to customers in the Turku region and across Finland. Turku Energia Energiaratkaisut has extensive experience in supplying electricity to public sector clients, including healthcare facilities. The company's winning bid of €14,507,350 was the lowest among four bids received.

Procurement Analysis

• Procedure: An open procedure was used, allowing any interested economic operator to submit a tender.
• Competition: Four bids were received, representing healthy competition in the Finnish electricity market.
• Evaluation criteria: Price only (100%). The contract was awarded to the bidder offering the lowest price, with quality assured through mandatory requirements.
• Local supplier: Turku Energia, a regional energy company, won the contract, demonstrating the importance of local presence.
• Long-term contract: The 4-year contract provides price stability and security of supply.
• Complex pricing: The pricing structure includes margins, quarter-spot delivery, and power-based hedging.
• No subcontracting: Turku Energia will deliver without subcontracting.

Additional Procurement Facts

• The contract is covered by the WTO's Government Procurement Agreement (GPA).
• No EU funds were used for this procurement.
• The procurement was not accelerated.
• No dynamic purchasing system was used.
• No framework agreement was used—this is a direct supply contract.
• Four bids were received, all electronically.
• No subcontracting was declared by the winner.
• Disputes or review requests fall to the Markkinaoikeus (Market Court) in Finland.
• Pass-through costs include Fingrid balancing service fees and Datahub site-specific fees.

Market & Industry Perspective

The Finnish electricity market is competitive, with a mix of national energy companies, regional utilities, and smaller suppliers. Public sector electricity procurement often favours competitive pricing and long-term contracts to ensure price stability.

Key trends in this market include:

• Price volatility: Electricity prices are subject to market fluctuations
• Hedging: Long-term contracts with hedging mechanisms provide price stability
• Regional suppliers: Local energy companies often win public sector contracts
• Price focus: Price is the dominant evaluation criterion for electricity procurement
• Pass-through costs: Grid and data hub fees are typically passed through

Economic Significance

At €14.5 million, this contract represents a significant investment in electricity supply for Southwest Finland's healthcare facilities. The contract ensures:

• Reliable electricity supply: Power for hospitals, health centres, and public facilities
• Price stability: Fixed margins and hedging provide cost certainty
• Cost efficiency: Competitive procurement secures value for money
• Local economic impact: The contract supports a regional energy company

Future Procurement Opportunities

With the contract now in place through 2031, future opportunities include:

• Contract renewal: The contract will be re-tendered for 2032 onwards
• Other Finnish regions: Similar electricity procurements by other wellbeing services counties
• Additional services: Related energy services (e.g., energy efficiency, renewables)
• Re-tender: The contract will be re-tendered in 2031

Opportunities for Suppliers

While this contract is awarded, future opportunities exist for electricity suppliers:

• Other Finnish regions: Similar procurements by other wellbeing services counties
• Re-tender: The contract will be re-tendered in 2031
• Additional services: Energy efficiency, renewables, and related services
• Public sector clients: Other public sector electricity procurements

What Businesses Should Watch

• Other Finnish wellbeing services counties' electricity procurement notices
• Changes to Finnish electricity market regulations
• EU energy market developments
• Emerging trends in renewable energy and sustainability
• Datahub and Fingrid fee structures

FinlandTender Procurement Intelligence

This electricity supply contract is a significant procurement for Southwest Finland's healthcare facilities. Several features stand out:

• Price focus: Price-only evaluation (100%) reflects the commodity nature of electricity supply
• Long-term stability: 4-year contract provides price certainty
• Local supplier: Turku Energia, a regional company, won the contract
• Complex pricing: Margins, quarter-spot delivery, and power-based hedging provide flexibility
• Healthcare focus: The contract supports the electricity needs of healthcare facilities

For suppliers, this procurement highlights the importance of:

• Competitive pricing: Price is the sole criterion for evaluation
• Regional presence: Local suppliers have a competitive advantage
• Hedging expertise: Ability to offer effective price hedging mechanisms
• Pass-through transparency: Clear pass-through of grid and data hub fees

Supplier Takeaways

• Offer competitive pricing—price is the sole criterion (100%)
• Develop regional presence in Finnish wellbeing services counties
• Demonstrate expertise in electricity pricing and hedging
• Ensure transparency in pass-through costs
• Monitor other Finnish regions for similar electricity procurements
• Consider long-term contracts with price stability mechanisms

Key Takeaways

• Varsinais-Suomen hyvinvointialue awarded a €14.5 million electricity contract to Turku Energia
• Duration: 1 January 2028 – 31 December 2031 (4 years)
• Evaluation: Price only (100%) – lowest price
• 4 bids received
• No subcontracting
• Local supplier (Turku Energia)
• Supports electricity supply for healthcare facilities in Southwest Finland
• No EU funding used

Conclusion

This electricity supply contract represents a significant procurement for the Wellbeing Services County of Southwest Finland. By securing a four-year contract with Turku Energia Energiaratkaisut, the region ensures reliable and cost-effective electricity supply for its healthcare facilities from 2028 to 2031.

The price-only evaluation reflects the commodity nature of electricity supply, with quality assured through mandatory requirements. Turku Energia's successful bid demonstrates the importance of regional presence in public sector electricity procurement.

As Finland's wellbeing services counties continue to invest in healthcare infrastructure, similar electricity procurements will provide opportunities for energy suppliers with competitive pricing and effective risk management capabilities.

Frequently Asked Questions

Q: What is Varsinais-Suomen hyvinvointialue?

Ans: The Wellbeing Services County of Southwest Finland, a regional authority responsible for health, social welfare, and rescue services in the Southwest Finland region.

Q: What is the value of the contract?

Ans: €14,507,350.00 (excluding VAT).

Q: Who won the contract?

Ans: Turku Energia Energiaratkaisut, a Finnish energy company based in Turku.

Q: What is being procured?

Ans: Electricity supply for healthcare facilities in Southwest Finland.

Q: How long is the contract?

Ans: 4 years (1 January 2028 – 31 December 2031).

Q: How many bids were received?

Ans: Four bids were received.

Q: What were the evaluation criteria?

Ans: Price only (100%) – lowest price.

Q: Is this contract funded by the EU?

Ans: No, the procurement is not financed with EU funds.

Source: EU Official Journal, Contract Award Notice 559933-2026, OJ S 154/2026, published 12 August 2026.