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Finland

Official Name:
Republic of Finland

National Designated Entity

Type of organisation:
Government/Ministry
Name:
Sari Tasa
Position:
Coordinator, Cleantech
Phone:
+358 29 504 8242 
Emails:
sari.tasa@tem.fi

Energy profile

Finland (2013)

Type: 
Energy profile
Energy profile
Extent of network

Electricity is transmitted to retailers through the main grid and regional grids (110-400kV).

Renewable energy potential

Finland is one of the leading industrialised countries to use renewable energy. Bioenergy has been the most important among used renewable sources.SolarThe solar energy reaching Finland from the sun annually amounts to 1,000 kWh per square metre.  In Finland solar energy systems have so far mainly been used in locations not connected to conventional power grids. Such locations and uses include many holiday homes, boats and ships, navigational markers, mobile communications masts, and buildings on islands or in remote areas.Solar energy systems connected to the grid are becoming more common, however, as more people are realising that solar energy - even in Nordic countries - can also be exploited to provide a considerable proportion of the electricity used in a typical home, for instance.Wind EnergyMany localities in Finland would be suitable for the generation of wind power, including coastal sites, coastal waters of the Baltic Sea, and the exposed fells of Finnish Lapland. Surveys have indicated that the total potential for wind power in marine waters alone amounts to tens of terawatt-hours a year.The 2008 National Climate and Energy Strategy includes a target that six terawatt hours a year should be generated using wind power in Finland by 2020. This would necessitate an increase in total national wind power capacity to around 2,500 MW.BioenergyBiomass accounts for a larger share of energy consumption in Finland than in any other industrialised country. Wood and wood-based residuals from Finland’s large-scale pulp and paper industry, including black liquor derived from pulp-making processes, account for as much as 97.5 % of the bioenergy produced in Finland. Solid recovered fuels, biogas, energy crops like reed canary grass and organic liquid fuels make up the remaining 2.5%.Wood directly or indirectly accounts for as much as a fifth of the energy used in Finland. The largest users of wood energy are the forest industry companies, who produce large quantities of energy from residual wood such as bark, sawdust and woodchips, as well as the wood-based by-products of pulp and paper making processes, including black liquor.So far only relatively small amounts of bioenergy have been generated in Finland using energy crops, recovered fuels, liquid biofuels or biogas. But the importance of these bioenergy sources is growing rapidly as climate-friendly alternatives are sought to non-renewable fossil fuels, whose prices can be expected to rise considerably due to their declining reserves, as well as future climate policies.HydroHydropower accounted for about 4% or Finland’s total energy consumption in 2008. Hydropower’s share of electricity production in Finland has varied in recent years within the range 10-15%, depending on precipitation levels and other hydrological conditions. Hydropower is Finland’s second most widely exploited renewable energy source, after bioenergy. In 2007 hydropower provided 14% of the renewable energy produced in Finland.The total unexploited hydropower potential along river systems that are not protected for landscape or nature conservation is estimated at more than 600 MW, corresponding to annual production of over two terawatt-hours. Almost 400 MW (0.4 TWh/year energy potential) of this unexploited capacity lies on river systems that have already been harnessed to some extent. It is unlikely that hydropower developments could be launched along any remaining totally unharnessed rivers, for conservation reasons.

Energy framework

As with other EU countries, also for Finland the overall EU 20-20-20 target for energy efficiency, greenhouse gas emissions and renewable energy sets the framework for a national energy policy.In Finland, the share of renewable energy in total final energy consumption must be increased to 38% by 2020 from the current 28% level. In energy terms, this means some 38 TWh of additional renewable energy. In the government scenarios, total energy consumption in 2020 measured in final energy is 327 TWh, showing only modest growth from the 2005 level of 303 TWh. The share of electricity in total energy consumption is nevertheless expected to grow.Finnish targets meet Europe’s Energy and Climate Policy by reducing greenhouse gas emissions by 20% and raising the share of renewable energy to 38% in compassion to an average of one fifth of total consumption by the year 2020. Energy efficiency will be improved in the same period by 20%. The so-called emissions trading sector (ETS) aim is to reduce the EU’s emissions by 21% from 2005 to 2020. Non-ETS, including activities such as transport and agriculture, reduction is an average of 10% from 2005 to 2020. For Finland, a reduction target of the non-ETS sector is set to 16% below 2005 levels by 2020. Renewable energy share in final energy consumption in Finland is defined in the target 38% in 2020.Finland submitted the National Action Plan for Promoting Energy from Renewable Energy Sources (NREAP) in June 2010. To meet the obligations to increase the share of renewable energy to 38% of final energy consumption by 2020, three notable proposals regarding the promotion of energy production from renewable energy sources were passed at the end of 2010 and came into force in the beginning of 2011, namely: the Act on Production Subsidy for Electricity Produced from Renewable Energy Resources (PSRESA) establishing subsidy scheme of feed-in tariffs and fixed production subsides; the amended Act on Promoting Use of Bio-fuels in transportation (PUBTA) introducing an increased bio-fuel distribution obligation for the fuel distributors and the amended Act on Production Tax for Liquid Fuel launching energy tax reform.  Furthermore, the Act on Energy Subsidy for Small Sized Wood expanding the scope of energy subsidies for small sized wood was enacted in 2011.  The feed-in tariff scheme under the PSRESA came into effect on 25 March 2011.  The new system of production subsidies introduces a feed-in tariff for wind power and biogas, a feed-in tariff for small wood-fuelled CHP plants, a variable feed-in tariff for electricity generated using forest chips, and a fixed production subsidy for hydropower as well as for wind power, biogas and electricity generated using forest chips.  Electricity generators may receive subsidy for up to 12 years in the fee-in tariff scheme.  Wind power plants will be accepted within the scheme until the total output of generators exceeds 2,500 MVA. Secondly, for biogas power plants the corresponding limit is 19 MVA.  Thirdly, wood-fuel powered plants will be accepted into the scheme until the total generator output exceeds 150 MVA and the number of power plants, 50.  As for forest chip power plants, no restriction is enacted.Since 2011 all fossils fuels and biofuels are subject to an energy content tax based on the known heating value of the fuel as well as being subject to increased carbon dioxide emissions tax.  Furthermore, a quality scaling of the biofuels used in transportation was introduced based on the fine particle emissions of biofuels which are harmful to health.

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