Eltel AB, a Nordic infrastructure services provider, has been awarded a €23.7 million contract by Caruna, Finland’s largest electricity distribution system operator, to replace smart meters across the utility’s entire network. The four-year project, set to begin in early 2026 with mass installations running from 2027 to 2029, represents the largest smart metering deployment in Finland by both geographic scope and contract value.
Contract Scope and Implementation Timeline
Under the agreement, Eltel Finland will manage the complete replacement of smart meters throughout Caruna’s distribution network, which spans approximately 90,000 kilometers and serves over 740,000 customers across southern, southwestern, and western Finland, as well as the city of Joensuu and the Koillismaa region. Preparatory work will commence in Q1 2026, with the bulk of meter replacements scheduled between 2027 and 2029.
The contract strengthens an existing relationship between the two companies. In September 2025, Eltel and Caruna signed a separate €81 million framework agreement covering field services, fault repairs, maintenance, and construction work across large portions of Caruna’s network areas from March 2026 through 2030, with options for two three-year extensions.
Finland’s Second-Generation Meter Transition
Finland was among the first European countries to achieve 100 percent smart meter coverage, with households receiving electricity bills based on actual meter readings since 2014. The country is now undertaking a nationwide transition to second-generation metering infrastructure, which enables 15-minute interval data collection compared to the hourly readings of first-generation devices.
Caruna’s modernization initiative involves multiple suppliers. In January 2025, the utility signed a €64 million contract with Aidon Oy, a subsidiary of Italian firm Gridspertise, for the supply of approximately 760,000 advanced electricity meters and metering services over an eight-year period. That agreement covers the hardware component of the project, while Eltel’s contract addresses the installation and deployment services.
Strategic Significance for Eltel’s Nordic Operations
The contract reinforces Eltel’s position in the Nordic smart grid and critical infrastructure services market. The Stockholm-headquartered company operates across the Nordics, Germany, and Lithuania with approximately 4,500 employees, reporting net sales of €828.7 million in 2024.
Eltel’s Finnish division has established itself as a key partner for Caruna’s network modernization efforts. The relationship extends beyond metering to include broader distribution network improvements, with previous framework agreements covering underground cabling, transformer station installations, and automation upgrades.
Broader Market Context
Second-generation smart meter deployments are accelerating across mature European markets. According to industry analyses, early adopters including Italy, Sweden, and Finland have already transitioned to replacement cycles, with annual shipments of replacement meters expected to account for 20 to 40 percent of total European smart meter volumes through 2029.
The Finnish smart meter market is projected to experience stable growth through 2029, driven primarily by the ongoing replacement of aging first-generation infrastructure. Caruna’s project represents approximately one-fifth of all metering points in Finland, making it a bellwether for the country’s broader grid digitalization trajectory.
