Renewable energy in 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.

Olkiluoto 3 nuclear plant represents 85% of Finland's planned investments in new power generation between 2006-2010. Investments in new renewables, including wind and solar heating, is negligible.[1] Renewable energy targets (wind, solar, biogas, biofuel) have not been taken seriously or binding in the energy politics development program as Finland will not fulfill even its modest national renewable energy targets for the year 2010.

Contents

Energy in Finland

Finland's energy consumption increased 44% in electricity and 30% in total energy use during the period 1990-2006. The increase in electricity consumption of 15,000 GWh (1995–2005) was more than Finland's total hydroelectric power capacity. The consumption increased almost equally in all sectors (industry, residential, and services). The share of renewable electricity in Finland has been stable (1998–2005): 11-12% plus yearly variable hydroelectric power, totaling 24-27%. The forest industries contributed 57 % of the RE power generation via black liquor and wood burning in 1990. By 2005 this share had grown to 67%.[2] The rest consisting primarily of hydroelectric power. As with most first world countries, the vast majority of commercially viable hydroelectric sites in Finland have already been developed. The forest industry uses 30% of all electricity in Finland (1990–2005). Its process wastes, wood residues, and black liquor were used to produce 7-8000 GWh of electricity in 2005. However, during that year electricity consumption fell 10 % compared to 2004 as a result of a prolonged forest industry labour dispute.[3] Finland's power consumption was (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 most modest of all the EU countries.[4]

Finnish CO2 emissions grew 14.5% (1990:2004), while the EU average was - 0.6%.[5] According to the Finnish RE organizations and Finnish public the potential of RE increase in Finland is huge. Owing to its exceptionally low population density and abundance of natural resources.

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.[6]

Wind power

Main article: Wind power in Finland
Wind power in Finland[7]
Year MW GWh
1990 0 0
1991 1 1
1992 1 2
1993 5 4
1994 5 5
1995 6 11
1996 7 11
1997 12 17
1998 17 24
1999 38 49
2000 38 77
2001 39 70
2002 43 63
2003 52 92
2004 82 120
2005 82 168
2006 86 153
2007 109 188
2008 142 261
2009 147 277
2010 197

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]

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 where economic incentives are missing, and competing sources of energy are cheap.

Pellets in Finland

[11][12]
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
2007  ? 100 000

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.[2]

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.[13][14]

Photovoltaics

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.[15] 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.

Solar heating

The objective in solar heating is 163 000 m2 collector area (1995–2010).[16] In 2006 the collector area in operation was 16 493 m2.[17] Solar heat in Finland was (1997–2004) 4-5 GWh and (2005) 6 GWh.[15] 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.[16] 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.

Biofuels

Use of Biofuels in Finland [15]
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).

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.[20] 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.[21]

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.[22] 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.[23] 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.[24] 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.[25] This statement aroused criticism. Thereafter he gave some less car intensive statements.

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.[26] 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. [27] 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.[28]

Table: RE of electricity

Renewable electricity consumption (GWh)[29][30][31]
Year Electricity Non-RE Non-RE
growth %		 RE RE % RE
without
water%		 Water Wind Black L Wood Other RE
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 5,126 2,920 101
2001 81,188 60,301 31.4 20,887 25.7 9.7 13,018 70 4,765 2,886 149
2002 83 542 64 377 40.3 19,165 22.9 10.2 10,623 63 5,140 3,194 144
2003 85,229 66,871 44.7 18,358 21.5 10.4 9,455 92 5,255 3,389 189
2004 87,041 62,239 35.7 24,802 28.5 11.4 14,865 120 5,779 3,827 210
2005** 84,672 62,086 35.3 22,586 26.7 10.8 13,430 172 5,060 3,649 281
2006 90,024 68,355 49.0 21 670 24.1 11.5 11 313 153 5,900 4,073 231
2007 90,374 66,779 45.5 23,595 26.1 10.6 13,991 188 5,719 3,419 274
2008 87,247 60,277 31.4 26,970 30.9 11.5 16,909 261 5,250 4,346 280
2009* 80,795 59,895 30.5 % 20,900 25.9 % 10.3 % 12,564 276 8,100***
* = preliminary information, ** = decline based on the forest industry strike, RE = Renewable energy, Black L=Black liquor ***=no detailed info

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 Sea by the nuclear power plant waste heat.

Renewable energy of energy consumption GWh[29][32][33]
Year Energy Non-RE
growth %		 RE RE % Wood Water Wind Other*
1990 317,321 0 % 57,895 18.2 46,450 10,752 0 693
1991 312,743 -1.8 % 57,889 18.5 44,064 13,066 1 758
1992 309,616 -4.0 % 60,491 19.5 44,768 14,957 2 764
1993 319,025 -1.8 % 64,275 20.1 50,132 13,339 4 800
1994 340,946 5.0 % 68,515 20.1 56,044 11,662 7 802
1995 334,853 1.6 % 71,397 21.3 57,650 12,788 11 948
1996 349,424 7.0 % 71,847 20.6 59,107 11,704 11 1,025
1997 359,309 8.1 % 78,790 21.9 65,877 11,795 17 1,101
1998 364,033 7.6 % 84,941 23.3 68,788 14,777 23 1,353
1999 372,798 9.0 % 89,947 24.1 75 781 12,547 49 1,570
2000 367,600 6.8 % 90,636 24.7 74,364 14,453 77 1,742
2001 380,769 12.9 % 87,762 23.0 72,573 13,018 70 2,101
2002 392,116 16.0 % 91,209 23.3 78,275 10,623 63 2,248
2003 413,478 23.8 % 92,200 22.3 79,903 9,455 92 2,750
2004 412,040 19.5 % 102,113 24.8 83,961 14,865 120 3,167
2005** 381,568 10.3 % 95,434 25.0 78,036 13,428 168 3,802
2006 417,021 21.0 % 103,213 24.8 87,534 11,313 153 4,212
2007 410,273 18.4 % 103,063 25.1 83,929 13,991 188 4,936
2008 392,776 9.4 % 109,015 27.8 83,929 16,909 261 7,916
2009* 369,837 5.9 % 95,116 25.7 72,722 12,564 276 9,554
RE = Renewable Energy, Non-RE = Non-renewable energy + import, Wood = Black liquor, industry and small scale wood fuels, * = Preliminary information 2009, ** = decline based on long forest industry strike in 2005
Other RE 2006 (GWh): Heat pumps – electricity 2,397, Recycled fuel 1,062, Biogas 424, Other Bioenergy 252, Biofuel 10, Solar power 11

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

See also

Renewable energy portal
Energy portal

References

  1. ^ Nuclear power undermining climate protection, Briefing 2008 Greenpeace 2008 s.4
  2. ^ a b Energy statistics 2006, Finnish statistical center, Tilastokeskus, energiatilasto, Vuosikirja 2006.
  3. ^ Greenhouse gas emissions in Finland 1990-2005 National Inventory Report to the UNFCCC 15.4.2007, Finnish statistics
  4. ^ 2005: Record year for investments in renewable energy REN21"Renewables Global Status Report 2006 Update", REN21. 2006. (Paris: REN21 Secretariat and Washington, D.C.:Worldwatch Institute).
  5. ^ Highlights from Greenhouse Gas (GHG) Emission Data for 1990-2004 United Nations Convention on Climate Change
  6. ^ Global Wind 2006 Report Global Wind Energy Council GWEG page 16
  7. ^ VTT (2010)
  8. ^ 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. ^ 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. ^ Statistics for pellet consumption in 2007 Available on www.pelletatlas.info
  13. ^ Pellets for small-scale domestic heating systems European Biomass Association Aebiom (Resmac project) 5/2007
  14. ^ AFABInfo.com - Information about pellet and stoves/combustion products (in English and Swedish)
  15. ^ a b c Energy Statistics Yearbook 2006, Official Statistics of Finland (GWh)
  16. ^ a b 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
  17. ^ Solar Thermal Markets in Europe (Trends and market statistics 2006) 6/2007
  18. ^ Biofuels Progress Report
  19. ^ Liikenteen biopolttoaineiden tuotannon ja käytön edistäminen Suomessa Työryhmän mietintö KTM 11/2006, 132 s
  20. ^ Pääkaupunkiseudun busseissa kokeillaan biopolttoainetta, YLE 27.9.2007
  21. ^ VM ei verota biodiesel-kokeilua Helsingin Sanomat 4.10.2007
  22. ^ Bussiala povaa autoveroalen karkoittavan matkustajat & Veronalennus jäi puolitiehen, Helsingin Sanomat 3.11.2007, A6
  23. ^ Pääkaupunkilaiset haluavat länsimetron ennen kehärataa, Helsingin Sanomat 23.7.2007, A9
  24. ^ Opiskelija-alennus halutaan sitoa ikään, Länsiväylä 28.11.2007, s. 14.
  25. ^ Kylläpä Pajunen keksi fantastisen idean!, Helsingin Sanomat 21.11.2007 C6
  26. ^ 2006 IPCC Guidelines for National Greenhouse Gas Inventories Intergovernmental Panel on Climate Change
  27. ^ Heikkilä, R.; Lindholm, T.; & Simola, H. (2007) Keskustelua: Turvetta suosiva energiapolitiikka perustuu kyseenalaiseen tutkimusraporttiin Tieteessä tapahtuu 3/2007
  28. ^ Energiläget 2006 Energimyndigheten pages 49-50, (in Swedish)
  29. ^ a b Preliminary Energy Statistics 2009 Finnish statistical center 24.3.2010, (Energiaennakko 2009 - taulukot Excel), Electricity T3.1
  30. ^ Sähkön ja lämmön tuotanto tuotantomuodoittain ja polttoaineittain 2000-2007 (Excel) 26.9.2008, (Production of electricity and heat by energy sources and mode of production): Black L, Wood and other RE 2000-2007
  31. ^ Production of electricity and heat by energy sources and mode of production 2008: Black L, Wood and other RE 2008
  32. ^ Energiatilasto vuosikirja 2007, Tilastokeskus joulukuu 2007
  33. ^ Energiatilasto vuosikirja 2008, Tilastokeskus helmikuu 2009
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