Nordic energy market

From Wikipedia, the free encyclopedia

Nordic energy market is a common market for energy in Nordic countries. It is one of the first free energy markets in Europe and is traded in Nord Pool. In 2003, the largest market shares were as follows: Vattenfall 17%, Fortum 14.1%, Statskraft SF 8.9%, E.on 7.5%, Elsam 5%, Pohjolan Voima 5%. Other producers had 42.5% market share.

[edit] Denmark

[edit] Finland

Olkiluoto Nuclear Power Plant with two existing units. The third unit and Finland's fifth (far left) is computer manipulated and will be ready by 2011.

See also: Nuclear power in Finland

Cheap and reliable energy is of exceptional importance to Finland. The energy demand is high because of its cold climate and the structure of its industry. Finland's hydrocarbon resources are limited to peat and wood, while neighboring Norway has oil and Estonia oil shale. Until the 1960s, Finnish energy policy relied on the electricity produced by hydropower stations and extensive decentralised use of wood for energy. Finland's 187,888 lakes do not lie much above sea level – less than 80 metres in the case of the two biggest lakes, Saimaa and Päijänne. Consequently, Finland has less hydropower capacity than Sweden or Norway.

Finnish energy cooperative Teollisuuden voima operates four nuclear reactors that produce 18 percent of the country's energy.^[1] There is also one research reactor in Otaniemi campus and the fifth AREVA-Siemens-built reactor – world's largest at 1600 MWe and a showcase of new technology – is currently under construction and is scheduled to be operational by 2011. Finland's Kyoto and EU emission terms are causing a sharp increase in energy prices and the existing reactors are aging: there has been talk about many more reactors and the sixth is already under environmental impact assessment.^[2]

Nuclear power is by far the cheapest energy form in Finland (the few hydropower plants excluded), but because political parties - particularly the Green League - are hesitant to grant nuclear power permits, most energy is produced from fossil fuels, mainly coal and oil. About 25 percent of energy production is categorized to be renewable energy, which is high compared to the EU average 10 percent. About one fifth of all the energy consumed in Finland is wood-based. Industrial residue and garbage are often utilized for energy. Many homeowners use wood as an additional (but not primary) heat source. About seven percent of electricity is produced from peat harvested from Finland's extensive bogs.

Currently, some electricity is imported to Finland. In recent years, a varying amount (5–17 percent) of power has been imported from Russia, Sweden and Norway. The Norwegian and Swedish hydroelectric plants remain an important source for imported power. The current energy policy debate is centred on self-sustainability. There are plans to build an submarine power cable from Russia, but this is also considered a national security issue. The government has already rejected one plan for such a power cable. Neste Oil operates two large oil refineries for domestic and Baltic markets, refined products making 36 percent of chemical exports.^[3]

[edit] Norway

[edit] Sweden

See also: Nuclear power phase-out in Sweden and Oil phase-out in Sweden

The 1973 oil crisis strengthened Sweden's commitment to decrease dependence on imported fossil fuels. Since then, electricity has been generated mostly from hydropower and nuclear power. The use of nuclear power has been limited, however. Among other things, the accident of Three Mile Island Nuclear Generating Station (USA) prompted the Swedish parliament to hold a referendum on nuclear power. The referendum led to a decision that no further nuclear power plants should be built and that a nuclear power phase-out should be completed by 2010.^{[citation needed]}

In 2006, out of a total electricity production of 139 TWh, electricity from hydropower accounted for 61 TWh (44%), and nuclear power delivered 65 TWh (47%). At the same time, the use of biofuels, peat etc. produced 13 TWh (9%) of electricity, while wind power produced 1 TWh (1%). Sweden was a net importer of electricity by a margin of 6 TWh.^[4] Biomass is mainly used to produce heat for district heating and central heating and industry processes.

In March 2005, an opinion poll showed that 83% supported maintaining or increasing nuclear power.^[5] Since then however, reports about radioactive leakages at a nuclear waste store in Forsmark, Sweden, have been published,^[6] although this does not seem to have changed the public support of continued use of nuclear power. Sweden decided to phase out nuclear fission before 2020,^[7] although it is very unlikely that this will happen and in 2006 the phase-out was itself phased out.^{[citation needed]}

In an effort to phase out the dependency on nuclear power and fossil fuels, the Swedish government has launched a multi-billion dollar program to promote renewable energy and energy efficiency.^[8][9] The country has for many years pursued a strategy of indirect taxation as an instrument of environmental policy, including energy taxes in general and carbon dioxide taxes in particular.^[8] Also in 2005, Sweden garnered international attention by announcing its intention to break its dependence on foreign oil within 15 years, with the goal of becoming the world's first oil-free economy.^[9]

[edit] References