Finnish rural stores prepare for costly refrigeration equipment upgrades
In Finland, small rural stores may face significant costs due to EU rules on fluorinated greenhouse gases used in refrigeration equipment. From 2030, old refrigeration systems will no longer be serviceable, while new refrigerants are not compatible with existing equipment. This was reported by YLE News.
According to a survey conducted by the Grocery Trade Association in summer 2023, upgrading refrigeration equipment will cost an average of around €190,000 per store. Eemeli Vinkka, the owner of K-markets in Halsua and nearby Reisjärvi, estimates the costs for his two stores at €1–2 million. He is also looking for new retail premises.
Risk for rural stores
Vinkka noted that many buildings in rural areas require repairs, so installing expensive refrigeration equipment in old premises may be impractical. According to him, investments must be economically justified, as it is impossible to obtain financing based solely on expectations.
About one thousand people live in Halsua, a significant share of whom are pensioners and elderly residents. The nearest grocery store is located about 20 kilometres away, in the neighbouring municipality of Veteli. Local residents call the store important for older people and those without a car.
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More than 60 Kesko stores without upgrades
Nuuttі Rantatupa, Kesko's director of retail locations and entrepreneur relations, said the company knows of more than 60 stores owned by the merchants themselves that have not yet upgraded their refrigeration equipment. In these establishments, the average age of the owners is higher, while renovations require not only replacing equipment but also other related investments.
S Group said it has been upgrading refrigeration equipment in its stores for ten years and does not plan to close many outlets because of the new requirements. Kesko expects to upgrade its network of company-owned stores by the end of the decade, while replacing some older facilities with new ones.
Old equipment may be used until the end of its service life, but from 2030 it will no longer be possible to service it. Annika Johansson, a representative of the Finnish Environment Institute, estimates that refrigeration systems have a technical service life of 10–15 years. Failure to comply with the requirements may result in a ban on using the device, a fine or, in the future, a penalty payment.
