Finland s New Energy and Climate Strategy

Transcription

1 Finland s New Energy and Climate Strategy Riku HUTTUNEN, Director General Arctic Energy Summit Helsinki, 18 September 2017

2 Themes The National Energy and Climate Strategy for 2030 Situation today in Finland: Energy balances Background EU policies Government Programme General description and outcome How climate affects Finnish national strategies? Electricity, heating, transport Ministry of Economic Affairs and Employment of Finland

3 Final energy consumption in 2015 (293 TWh) Industrial energy use, excl. electricity 33 % Industry 13 % Space heating, excl. electricity 20 % Transport fuels 16 % 27 % Electricity Other final energy use 4 % Households and agricultural use 8 % Public and commercial services 6 % Ministry of Economic Affairs and Employment of Finland

4 Big picture: Renewables progressing, fossil fuels losing ground Primary energy consumption 2016 (371 TWh) Ministry of Economic Affairs and Employment of Finland

5 Supply of electricity TWh Net import Conventional condensing power Combined heat and power, district heat Combined heat and power, industry Nuclear power Wind power Hydro power Source: Statistics Finland Ministry of Economic Affairs and Employment of Finland

6 Political background for the Strategy EU climate and energy policy targets for 2030 Greenhouse gas emissions: -40% from 1990 EU Emissions Trading Scheme: -43% from 2005 Sectors outside the ETS: -30% from 2005; (Finland: -39%) Energy efficiency: 30% improvement target Renewable energy: 27% of final consumption EU s Energy Union Security of supply etc., five policy dimensions Government Programme Emphasis on clean energy, renewables, bioeconomy Ministry of Economic Affairs and Employment of Finland

7 Juha Sipilä s government programme: Towards carbon-free, clean and renewable energy cost-efficiently The use of emission-free, renewable energy will be increased in a sustainable way so that its share will rise to more than 50 per cent during the 2020s and the self-sufficiency in renewable energy to more than 55 per cent, also including peat. This will be based, in particular, on the growth in the supply of bioenergy and other emission-free renewable energy. The greatest opportunities will be achieved in increasing the production and technology of liquid biofuels and biogas. Aid for lowering the costs of the increase in renewable energy that is compatible with the EU guidelines will be based on technology neutrality and ranking of economic priorities. Meeting the sustainability criteria for biomass and fair burden sharing in the EU and international climate negotiations will be secured. Coal will no longer be used in energy production and the use of imported oil for the domestic needs will be cut by half during the 2020s. The share of renewable transport fuels will be raised to 40 per cent by Ministry of Economic Affairs and Employment of Finland

8 National Energy and Climate Strategy for 2030 Approved by the Government in November 2016 as a Report to the Parliament; Parliament report on 1 June 2017 The aim is to reach Government and EU 2030 targets Emphasis on reducing CO2 emissions and promoting renewable energy 50% of final energy consumption covered by renewables in 2030 Transport fuels: at least 30% renewables by 2030 (especially by biofuel blending obligations) Phasing out the use of coal in energy production by 2030 (with some conditions regarding security of supply etc.) Halving the use of imported oil for energy Development of regional, competitive electricity and gas markets is promoted Ministry of Economic Affairs and Employment of Finland

9 Final energy consumption 350 Final energy consumption TWh Policy scenario Statistics Työ- ja elinkeinoministeriö

10 Electricity demand Electricity demand TWh Policy scenario Statistics Työ- ja elinkeinoministeriö

11 Renewable energy, share of final consumption Työ- ja elinkeinoministeriö

12 Non-ETS* greenhouse gas emissions Mt CO2 ekv 35 Non-ETS sector* greenhouse gas emissions % % - 39 % 15 Ghg emission reduction, Energy and Climate Strategy measures Ghg emission reduction, measures to be decided maximum ghg emissions maximum ghg emissions incl. one-off reduction maximum ghg emissions 5 * emission trading scheme scope of Työ- ja elinkeinoministeriö

13 TWh Oil demand Policy scenario Oil demand bioliquids biofuels diesel fuel, fossil component motor gasoline, fossil component light fuel oil, fossil component jet fuel and aviation gasoline heavy fuel oil % Työ- ja elinkeinoministeriö

14 Specific issues in Finland with regard to the subarctic location Finland is the northernmost (coolest!) country in the EU Security of supply is even more important in cold climate High heat demand Strong seasonality in power demand Transport needs: long distances, harsh winters Ministry of Economic Affairs and Employment of Finland

15 How the subarctic location affects national strategies? (1) All the same solutions don t work as elsewhere Burning fuels needed for heating Seasonality in solar/wind power production: during peak demand in winter sun doesn t shine and winds are weak Technologies and design have to reflect the climate conditions, e.g. energy efficiency of buildings Electricity market Network-based: some problems e.g. in distribution systems in Lapland; 2013 security-of-supply legislation CHP challenges Smart grids development, demand response Strong regional markets (Nordic-Baltic) Ministry of Economic Affairs and Employment of Finland

16 How the subarctic location affects national strategies? (2) Heating/fuels District heating (based on CHP) very common Heat pumps Wood-based fuels are important Preparedness is needed i.a. due to the climate: oil stocks etc. Transport A lot of transport, also heavy road vehicles Fuel quality issues Limits for the electrification of transport Costs Additional costs for industries Cost-effectiveness of measures cutting emissions is crucial Ministry of Economic Affairs and Employment of Finland

17 The regional electricity market a success story Finland, Sweden, Norway, Denmark and the Baltic States Baltic States: desynchronisation from the Russian system? The joint market Advantage of different production resources and consumption patterns Better market functioning Increased cost-efficiency Ministry of Economic Affairs and Employment of Finland

18 Thank you