Renewable energy in Finland

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Vatunki wind farm in Kuivaniemi, Ii municipality, Finland.
Vatunki wind farm in Kuivaniemi, Ii municipality, Finland.

Renewable energy in Finland of electricity was (2005): Water 60 %, forest industry black liquor 22 %, other wood residues 16 %, wind power 0.2 % and other RE 1 %. The European objectives are: 22 % renewable source electricity and 12% renewable of primary energy in 2010 (directive and white paper). This includes e.g. the objectives of 40 GW wind power, 3 GW PV and 5.75 % biofuels (2010). The wind power objective was reached in 2005. The leading wind power countries have set new, more ambitious goals.

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Contents

[edit] Energy in Finland

The energy consumption increased 44 % in electricity and 30 % in the total energy use 1990-2006. The increase in electricity consumption 15 000 GWh (1995-2005) was more than the total water power capacity. The electricity consumption increased almost equally in all sectors (industry, homes and services). The share of renewable electricity in Finland has been stable (1998-2005): 11-12 % plus yearly changing water power, together around 24-27 %. The RE of total energy has been 24 % (1998-2005). The forest industry black liquor and forest industry wood burning were 57 % (1990) and 67 % (2005) of the RE of total energy.[1] The rest is mainly water power. The most of available water power for energy is already in use. The forest industry uses 30 % of all electricity in Finland (1990-2005). Its process wastes, wood residues and black liquor, gave 7-8000 GWh RE electricity in 2005. In the year 2005 this and electricity consumption fell 10 % compared to 2004 based on the long forest industry strike.[2] Finland consumed (2005) 17.3 MW electricity per capita compared to Germany 7.5 MW per capita. This number includes the power losses of the distribution.

The objective of RE (2005) of electricity was 35 % (1997-2010). However, (2006) the Finnish objective was dropped to 31.5 % (1997-2010). According to ‘Renewables Global Status Report’ Finland aims to increase RE only 2 % in 13 years. This objective to add the RE use with 2 % in 13 years is among the modest of all the EU countries.[3]

The Finnish CO2 emissions grew 14.5 % (1990:2004), when EU average was - 0.6 %.[4] According to the Finnish RE organisations and Finnish public the potential of RE increase in Finland is huge.

[edit] Politics

Finland does not use feed-in tariffs, fixed premiums, green certificate systems or tendering procedures. From the European countries, Finland, Malta and Slovenia are the only ones (2006) that use only tax incentives to promote wind energy and other renewable electricity. Finland has no obligations or binding recommendations for the power companies to promote RE.[5] The Finnish politicians and companies give all the responsibility of the climate change to consumers. The consumers are responsible to change their living habits with no support from the government. The Finnish government has not given any binding objectives with time scale for any source of RE.

In the elections individuals and companies can give legally and in secret unlimited amounts of financial support to the political parties. The Finnish politicians claim, that financial support has no effect in their decisions and it must be kept in secret. Many parliamentarians do not publish their commitments. The Transparency International has repeatedly criticized Finland and compared its corruption to the Belarusian one.[6] The party financing may have prevented feed-in-tariffs, green certificates and the RE obligations for the companies and promoted the nuclear power implementation.

[edit] Wind power

Reposaari Pori
Reposaari Pori
Wind power in Finland[7]
Year MW GWh
2007 110 191
2006 86 153
2005 82 170
2004 82 120
2003 52 92
2002 43 63
2001 39 70
2000 38 77
1999 38 49
1998 17 24
1997 12 17
1996 7 11
1995 6 11
1994 5 5
1993 5 4
1992 1 2
1991 1 1
1990 0 0


EWEA has predicted that wind power will cover 13-16 % of EU electricity consumption with 180 GW capacity (2020).[8] Europe’s total installed capacity is 48 042 MW (2006).

In Finland the capacity of wind power is (2006) 86 MW. This is 0.2 % of electricity consumption. The objective is 494 MW (1995-2010). In 11 years Finland has installed 17 % of its objective. Wind power could produce at least 20–30 % of Finland’s energy demand. The capacity 3 500 MW (8 TWh) corresponds 10 % of electricity consumption in Finland. Implementation has slowed down by inefficient support systems.[9] The lack of confidence in the stability of electricity and subsidies has prevented the small power companies to build wind power. According to a public opinion survey in the Pori district 97 % of the area consumers supported addition of wind power (2000). According to the Finnish Ministry of Trade and Industry the goal of 500 MW of wind power (2010) is not possible in Finland, as it would demand intensive tax reductions that are prohibited by the European Union legislation.[10]

[edit] Biomass

Finland uses a lot of wood as energy based on the forest industry. Its volume has increased in the industrial use. As the energy consumption has increased, the share of RE is constant. However, simultaneously the use of non-renewable energy has grown about 20 %. In comparison, in Germany the non-RE source of electricity grew only 2 % (1990-2005).

Finland uses insignificant wood pellet quantities for thermal energy production. In Sweden and Denmark active energy politics with significant taxation of fossil energy has encouraged an early development of the pellet market. This development has taken place much faster than in Finland were economic incentives are missing, and competing sources of energy are cheap.

Pellets in Finland

[11]
Year GWh tonnes
2001 71 15 000
2002 114 24 000
2003 183 39 000
2004 221 47 000
2005 257 55 000
2006 411 87 000

Pellet production was 192 000 tons (2005). Pellet consumption was 55 000 t (2005), 47 000 t (2004), 39 000 t (2003), 24 000 t (2002) ja 15 000 t (2001). The pellets are mainly exported. Finland has no binding objectives for pellet use promotion.[1]

The Swedish consumption 1 400 000 ton pellets = 6500 GWh, would equal half of Finland’s water power. In Sweden, the continuous government support ensures stable market conditions, energy taxes are established many years ago and there are promotion programs for the implementation of pellet heating. In Sweden 40 % of pellets are used in central heating (2006). The small house market potential is estimated to be 1.5-2 million tons of pellet fuel. Thus, there are potentials to double the present pellet use in Sweden. The existing heating boilers can be converted to pellet heating.[12][13]

[edit] PV

The PV capacity of Finland was (2006) 4.1 MWp Solar power in Finland was (1993-1999) 1 GWh, (2000-2004) 2 GWh and (2005) 3 GWh.[14] There has been at least one demonstration project by the YIT Rakennus, NAPS Systems, Lumon and City of Helsinki in 2003. Finland is not a member either in the IEA’s Photovoltaic Power Systems Programme or the Scandinavian Photovoltaic Industry Association, SPIA.

[edit] Solar heating

The objective in solar heating is 163 000 m2 collector area (1995-2010)[15]. In 2006 the collector area in operation was 16 493 m2.[16] Solar heat in Finland was (1997-2004) 4-5 GWh and (2005) 6 GWh.[14] Thus, Finland has installed 10 % of its objective in 11 years time (1995-2010). The solar heating has not been competitive due to cheap alternatives (electricity, fuel oil and district heating) and the lack of support systems. Companies and public organizations may receive 40% investment subsidies, but private houses do not receive subsidies yet. The Finnish Solar Industries (FSI) group was established in 2001.[17] 2006/2005 the markets grew 43 %. Finland’s production capacity is 16 000 m²/a. New installations were: 2 380 m2 (2006), 1 668 m2 (2005) and 1 141 m2 (2004). There are growth opportunities in the solar heating.

[edit] Biofuels

Nature in Finland
Nature in Finland
Use of Biofuels in Finland [14]
Year Bioaethanol Biogas Biodiesel
1995 0 180 0
1996 0 190 0
1997 0 197 0
1998 0 217 0
1999 0 212 0
2000 0 238 0
2001 0 209 0
2002 9 244 0
2003 49 269 0
2004 52 308 0
2005 0 486 0

The European Union has the objective of 5.75 % of biofuels (2010). The biofuels report do not include the Finnish objective.[18] They are not published yet. The Finnish Ministry of Trade and Industry report (KTM 11/2006) admits that Finland would be able to fulfill the 5.75 % objective. The ministry report does not recommend it, because of its expenses. The production price of biofuels in Finland would be equal to other EU countries, 3 cents pro liter.[19]

The Finnish parliament did not consider bioethanol competitive in Finland. The director of Altia resigned as Altia's major bioethanol project failed; increased costs made it unprofitable. However, the biodiesel production is investigated in a publicly funded research program. Partly state owned power company, Fortum, has informed that it will start the biodiesel production. Fortum is one of the major oil, nuclear power and water power producers. It received the water power in an M&A agreement years ago. Fortum is also a partner in the most wind power projects and the owner of the NAPS Solar Energy (or NAPS Systems).

Neste Oil produces biodiesel from Malaysian palm oil 170 000 tonnes (2007) and 340 000 tonnes (2008) for international use.[20] According to Greenpeace Neste Oil is the first company producing biodiesel from the palm oil. It is also Finland’s biggest palm oil importer. The palm oil is bought from the biggest Indonesian producer IOI, and Neste has joined RSPO, a voluntary organization for sustainable palm oil production. Greenpeace has protested the use of palm oil, as the increased demand for arable land endangers rain forests and increases climate change as opposite to the original purpose.[21] According to Greenpeace, the climate change emissions may be 15 fold higher by palm oil biodiesel compared to the normal one.[22] Indonesia loses its rain forests faster than any other country.[23] According to WWF already 80 % of all Malaysian and Indonesian Forests have been cut down.[24] WWF solution is restroration and re-introduction of native species. [25] The public transportation in the Helsinki metropolitan area has decided to use the palm oil biodiesel of Neste Oil. In 2010 half of the busses will use it. Finnish government is supporting financially the biodiesel use.[26] Neste Oil biodiesel will be tax free for the public transportation until 2010. This is worth 7.2 million euros for Neste Oil and may diminish the share of other competing biofuels.[27]

The taxation system creates a special problem for biofuels. Although diesel fuel is taxed less than gasoline, all diesel cars are subject to an additional "diesel tax" on top of the regular annual car tax, ostensibly for environmental reasons. Thus, only those that drive long distances annually have an incentive to opt for diesel instead of gasoline. However, biofuels are not accommodated to this scheme, and the government has met demands for reform with considerable reluctance. Also, alternative fuels are taxed especially hard, by default in the same way as high-sulfur fuels.

[edit] Traffic

National car taxation was reduced in 2003. This reduced the public transportation ca 8 % and increased the annual sell of new cars 25 % from 120 000 to 150 000. In 2007 the government decided to further reduce the price of 80 % of cars. The average car tax is reduced from 26 % to 22 %. The new taxation 1.1.2008 will take the CO2 emissions into account. The petrol price is slightly increased. However, this tax reform is predicted to increase the number of two- and three-car-households and decrease the use of public transportation.[28]The new metro line was considered as more urgent by 58 % of citizens than the new ring road (38 %). This Gallup research about the new traffic projects in Helsinki, Vantaa and Espoo was made in 7/2007. It did not study the support of alternatives.[29] Before 1.1.2004, there were practically no private CNG driven cars. Only at this point the legislation was changed so that only CNG driven Euro-4 OEM cars are not subject to heavy taxation and the number of such cars has been increasing slowly. LPG and E85 driven cars are still subject to heavy taxes and fines making it de facto not possible to use such or any other alternative fuel cars except electric cars in Finland.

The student and pensioner discount is 50 % in the public transport in the Helsinki metropolitan area in 2007. As one alternative YTV suggests to drop the discount to 30 % and to limit it to students under 25-years and pensioners over 70-years.[30] Public transport in the Helsinki metropolitan area is the most important in Finland. Public transport in the Helsinki metropolitan area includes (zone 1): Helsinki, (zone2): Espoo + Kauniainen + Vantaa and (zone 3): Kerava + Kirkkonummi. As the cities form a single metropolitan area, a 2-zone-travel may take less than 10 minutes. Fares for a single area tickets are 2007 :

  1. zone 1: 1.8-2.1 € (tourists 2,2-2.4 €)
  2. zone 2: 3,2 € (tourists 3,60 €)
  3. zone 3: 5.3 € (tourists 6 €).

There are no restrictions or pay duties for cars in the Helsinki metropolitan area in 2007. The new underground parking lots and road passages have been actively promoted by the Helsinki town leder Jussi Pajunen and Espoo town administration during 2006-2007. Jussi Pajunen wants to promote the use of private cars in the Helsinki city center.[31] This statement aroused criticism. Thereafter he gave some less car intensive statements.

[edit] Peat

Finnish politicians and industry actively promote the fuel production from peat. According to European Union and IPCC peat is not biofuel as claimed but have equal CO2 emissions to coal.[32] The EU also promotes the protection of swamps from ecological disasters. The Finnish peat company Vapo Oy is owned by the state (50.1 %) and the forest industry company Metsäliitto (49.9 %)(including Metsä-Botnia, M-real and Metsä Tissue and previously also Finnforest). They want to use the peat as fuel and dry the swamps as forests. The Finnish forest companies strive to reduce the demand of trees as energy source in order to keep the wood price low. This may also be controlled by having a leading position in the pellet production (Vapo). According to the Finnish ecologists and docents the swamps are important for water balance. Supporting research is made by the state institute. The university experts criticise this and Finland’s energy politics.[33] Scandinavian peat was formed 10 000 years ago after the ice age. 1.1.2005 the European common carbon dioxide emission system was agreed, and according to the agreement peat is equal to fossil fuel.[34]

[edit] Public attitude

According to the newspapers the people in Finland take the climate change very seriously and have a positive attitude towards the RE.

[edit] Table: RE of electricity

Electricity consumption (GWh)[11][35][36]
Year Electricity Non-RE Non-RE
growth %		 RE[37] RE % RE
without
water%		 Water Wind Black L Wood Other
1990 62,334 45,882 0.0 16,452 26.4 9.1 10,752 0
1991 62,288 43,371 -5.5 18,917 30.4 9.4 13,066 1
1992 63,196 42,467 -7.4 20 729 32.8 9.1 14,957 2
1993 65,545 45,372 -1.1 20,173 30.8 10.4 13,343 4
1994 68,257 49,238 7.3 19,019 27.9 10.8 11,663 7
1995 68,946 50,068 9.1 18,878 27.4 8.8 12,788 11
1996 70,018 51,915 13.1 18,103 25.9 9.1 11 704 11
1997 73,603 54,334 18.4 19,269 26.2 10.2 11,795 17
1998 76,630 53,585 16.8 23,045 30.1 10.8 14,777 23
1999 77,779 56,398 22.9 21,381 27.5 11.4 12,547 49
2000 79,158 56,482 23.1 22,676 28.6 10.4 14,453 77 5,100 2,900 101
2001 81,188 60,301 31.4 20,887 25.7 9.7 13,018 70 4,800 2,900 149
2002 83,542 64,377 40.3 19,165 22.9 10.2 10,623 63 5,200 3,200 144
2003 85,229 66,871 44.7 18,358 21.5 10.4 9,455 92 5,300 3,400 189
2004 87,041 62,239 35.7 24,802 28.5 11.4 14,865 120 5,800 3,800 210
2005** 84,672 62,086 35.3 22,586 26.7 10.8 13,430 172 5,100 3,700 281
2006 90,024 68,355 49.0 21,670 24.1 11.5 11,313 153 5,900 4,100 231
2007* 90,301 13,971 191
* = preliminary information, ** = decline based on the forest industry strike, RE = renewable energy, Black L=black liquor

[edit] Table: RE of total energy

The renewable energy of primary energy was 24.0 % (2005) and 24.1 % (2004). Total primary energy supply was 392 022 (2005) and 418 672 GWh (2004). The primary energy includes in addition to the energy consumption also e.g. the heating up of the Baltic See by the nuclear power plant waste heat.

Energy consumption GWh[11][38]
Year Energy Non-RE
growth %		 RE RE % Wood Water Wind Heat
pumps		 Recycled
fuel		 Other*
1990 317,246 0 % 57,895 18.2 46,450 10,752 0 597 91 5
1991 312,613 -1.8 % 57,889 18.5 44,064 13,066 1 663 90 5
1992 309,505 -4.0 % 60,491 19.5 44,768 14,957 2 658 100 5
1993 318,911 -1.8 % 64,275 20.2 50,132 13,339 4 697 97 6
1994 340,842 5.0 % 68,515 20.1 56,044 11,662 7 714 82 5
1995 334,397 1.4 % 71,416 21.4 57,650 12,788 11 703 78 186
1996 348,737 6.8 % 71,869 20.6 59,107 11,704 11 758 93 196
1997 358,776 7.9 % 78,812 22.0 65,877 11,795 17 775 128 221
1998 363,792 7.5 % 84,966 23.4 68,777 14,777 23 836 302 241
1999 372,521 8.9 % 89,970 24.2 75,887 12,547 49 853 386 249
2000 366,873 6.5 % 90,658 24.7 74,489 14,453 77 814 514 312
2001 379,324 12.8 % 86,896 22.9 71,801 13,018 70 1,022 708 277
2002 390,206 15.7 % 90,180 23.1 77,328 10,623 63 1,133 669 365
2003 411,523 23.6 % 91,002 22.1 78,761 9,455 92 1,283 879 532
2004 410,061 19.3 % 100,756 24.6 82,623 14,865 120 1,544 995 608
2005* 379,565 10.1 % 93,929 24.7 76,530 13,428 168 1,822 1,250 730
2006 414,526 20.7 % 101,465 24.5 85,844 11,313 153 2,397 1,062 696
2007* 411,342 19.4 % 101,688 24.7 13,971 191
Non-RE = Non-renewable energy + import, Wood = Black liquor, industry and small scale wood fuels, Heat pumps = ground heat and air heat pumps - electricity
* Other 2006 (2005) ’2004’ [2003] GWh: Biogas 424 (485) ’308’ [269], Other Bioenergy 252 (226) ’215’ [118], Biofuel 10 (0) ’52’ [49], Solar Power 11 (8) ’7’ [7]
2005* = decline based on long forest industry strike, 2007* = Preliminary information, RE = Renewable Energy


In the table is the contribution of RE to electricity production for the EU-25 by 2020.

By acting now, you are in the position to take advantage of a unique window of opportunity and become a world leader in the green industrial revolution, building the low-carbon economy of the future (ref. British Wind Energy Association). Renewable energy is a revolutionary business opportunity. The more we invest in it, the faster its price will fall. The employment of RE is the best international development aid. International agreements could improve equal business opportunities in all countries including Finland. Finland has large potentials of RE, which should be all implemented simultaneously up to 100 % of the energy consumption.

[edit] See also

Energy Portal

[edit] References

  1. ^ a b Energy statistics 2006, Finnish statistical center, Tilastokeskus, energiatilasto, Vuosikirja 2006.
  2. ^ Greenhouse gas emissions in Finland 1990-2005 National Inventory Report to the UNFCCC 15.4.2007, Finnish statistics
  3. ^ 2005: Record year for investments in renewable energy REN21“Renewables Global Status Report 2006 Update”, REN21. 2006. (Paris: REN21 Secretariat and Washington, DC:Worldwatch Institute).
  4. ^ Highlights from Greenhouse Gas (GHG) Emission Data for 1990-2004 United Nations Convention on Climate Change
  5. ^ Global Wind 2006 Report Global Wind Energy Council GWEG page 16
  6. ^ Kansanedustajan kytkökset – ketä kiinnostaa? Helsingin Sanomat 9.9.2007 A4
  7. ^ Tuulivoiman tuotantotilastot, Vuosiraportti 2005 VTT55, Espoo 2006, Hannele Holttinen W55.pdf
  8. ^ [htlm://www.ewea.org/fileadmin/ewea_documents/documents/press_releases/2007/070608_EWEC_Conclusions.pdf European Wind Industry] calls for swift and effective legislation press release, EWEA 15.2 2007
  9. ^ Faktaa tuulivoimasta –esite Finnish Wind Power Association, 2/2005
  10. ^ Lähiajan energia- ja ilmastopolitiikan linjauksia - kansallinen strategia Kioton Valtioneuvoston selonteko eduskunnalle 30.11.2005, Finnish Ministry of Trade and Industry 26/2005. p. 70.
  11. ^ a b c Energy statistics 2007, Finnish statistical center, December 2007, T1.1 Total Energy Consumption, T2.8 RE (electricity), T3.1 and T3.3 Electricity Supply, T 2.9 Wood Fuels (Wood pellets)
  12. ^ Pellets for small-scale domestic heating systems European Biomass Association Aebiom (Resmac project) 5/2007
  13. ^ AFABInfo.com - Information about pellet and stoves/combustion products (in English and Swedish)
  14. ^ a b c Energy Statistics Yearbook 2006, Official Statistics of Finland (GWh)
  15. ^ ESTIF Sun in Action II – A Solar Thermal Strategy for Europe, vol. 2 The Solar Thermal Sector Country by Country, 21 National Reports, 348 s., 4/2003
  16. ^ Solar Thermal Markets in Europe (Trends and market statistics 2006) 6/2007
  17. ^ ESTIF Sun in Action II – A Solar Thermal Strategy for Europe, vol. 2 The Solar Thermal Sector Country by Country, 21 National Reports, 348 s., 4/2003
  18. ^ Biofuels Progress Report
  19. ^ Liikenteen biopolttoaineiden tuotannon ja käytön edistäminen Suomessa Työryhmän mietintö KTM 11/2006, 132 s
  20. ^ Pääkaupunkiseudun busseissa kokeillaan biopolttoainetta Yleisradio Television News 27.09.2007
  21. ^ Miksi juuri Neste Oil, Greenpeace? Taloussanomat 28.11.2007, s.3
  22. ^ Greenpeace: Nesteen biodieseliä markkinoidaan väärillä ilmastohyödyillä YLE 23.10.2007
  23. ^ Indonesia menettää nopeiten metsiä Yleisradio Television News 24.10.2007
  24. ^ Oranki WWF
  25. ^ Rain Forrest Restoration WWF
  26. ^ Pääkaupunkiseudun busseissa kokeillaan biopolttoainetta, YLE 27.9.2007
  27. ^ VM ei verota biodiesel-kokeilua Helsingin Sanomat 4.10.2007
  28. ^ Bussiala povaa autoveroalen karkoittavan matkustajat & Veronalennus jäi puolitiehen, Helsingin Sanomat 3.11.2007, A6
  29. ^ Pääkaupunkilaiset haluavat länsimetron ennen kehärataa, Helsingin Sanomat 23.7.2007, A9
  30. ^ Opiskelija-alennus halutaan sitoa ikään, Länsiväylä 28.11.2007, s. 14.
  31. ^ Kylläpä Pajunen keksi fantastisen idean!, Helsingin Sanomat 21.11.2007 C6
  32. ^ 2006 IPCC Guidelines for National Greenhouse Gas Inventories Intergovernmental Panel on Climate Change
  33. ^ Heikkilä, R.; Lindholm, T.; & Simola, H. (2007) Keskustelua: Turvetta suosiva energiapolitiikka perustuu kyseenalaiseen tutkimusraporttiin Tieteessä tapahtuu 3/2007
  34. ^ Energiläget 2006 Energimyndigheten pages 49-50, (in Swedish)
  35. ^ Supplies and Total Consumption of Electricity Finnish statistical center 20.3.2008
  36. ^ Sähkön ja lämmön tuotanto tuotantomuodoittain ja polttoaineittain vuonna 2006 Finnish statistical center 18.10.2007
  37. ^ Energy statistics 2006, Finnish statistical center, Energiatilasto 2.8, Vuosikirja 2006, Tilastokeskus
  38. ^ Fossil Fuels and Renewables Finnish statistical center, Preliminary information 2007, 20.3.2008 (2006-2007 update)
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