Finland Energy efficiency report
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1 Finland Energy efficiency report Objectives: 37 TWh of energy savings by 22 Overview - (% / year) Primary intensity (EU=1) % - CO 2 intensity (EU=1) % -- CO 2 emissions per capita (in tco 2 / cap) % - Power generation - (% / year) Efficiency of thermal power plants (in %) % -- Rate of electricity T&D losses (in %) % -- CO 2 emissions per kwh generated (in gco 2 / kwh) 21 +.% -- Industry * -* (% / year) Energy intensity (EU=1) % + Share of industrial CHP in industry consumption (in %) % - Unit consumption of steel (in toe/t) % - ++ Among best countries + Better than the EU average - Below the EU average -- Among countries with lowest performances Latest update: January The European Union, as the best-performing region, is used as the benchmark. 1 Finland Country reports
2 1. Overview 1.1. Policies: 37 TWh of energy savings by 22 In February 21, Finland adopted a resolution on energy efficiency measures to be implemented in order to reach the targets established in the Long-Term Climate and Energy Strategy (), ie, 37 TWh (3.2 Mtoe) of energy savings by 22. The first National Energy Efficiency Action Plan () set an energy savings target of 17.8 TWh (1.5 Mtoe) for the period between and 216; 29 percent of those savings have to be achieved in the households sector, 24 percent in transport, 23 percent in industry, 16 percent in services, 5 percent in agriculture and 4 percent in construction and machinery. Energy audits for buildings and production processes were introduced in, and between then and cost a total of 61 million ($85 million), 27 million ($38 million) of which were subsidized. An Energy Aid system () grants subsidies for efficiency and renewable energy projects (up to 4 percent of the cost of energy audits and wind or solar projects, and up to 3 percent of the cost of other renewable projects) Energy consumption trends: high consumption per capita compared with the EU average Energy consumption in Finland is almost 9 percent higher than the EU average, at 6.2 toe/cap in. Total energy consumption (primary consumption) increased regularly between and (+1.7 percent/year) and has been declining since (-3.5 percent in and -6 percent in ). Figure 1: Total and final energy consumption trends Oil covers 28 percent of Finland s energy needs. Biomass accounts for 21 percent of primary consumption, followed by coal (16 percent) and gas (1 percent). Nuclear power accounts for 18 percent of primary consumption, while hydroelectricity and power imports represent 3 percent of primary consumption each. Industry (including non-energy uses) accounts for nearly half the final consumption (49 percent in ). The consumption structure by sector has changed very little since : the share of transport has remained stable at 17 percent and the share of the households and services sector decreased only slightly, from 35 percent in to 34 percent in. Figure 2: Distribution of final energy consumption by sector 1% 8% 6% 4% 2% % Electricity consumption, which had been growing by 2.3 percent/year since, dropped by 3.9 percent in and by 7.2 percent in. That fall was linked to the sharp decrease in industrial electricity consumption (-7 percent in and -16 percent in ). Industry currently accounts for 47 percent of electricity consumption (55 percent in ). Figure 3: Electricity consumption trends by sector Households -Services -Agriculture Transport Industry (including non energy use) Industry Others Mtoe 25 TWh Primary consumption Final consumption Country reports Finland 2
3 Finland Energy efficiency report 1.3. Energy efficiency and CO 2 trends: slight improvement in CO 2 and energy intensity Primary energy consumption per unit of GDP (primary energy intensity) decreased slightly between and (-.9 percent/year). That minor improvement was triggered by a 1.2 percent/year fall in final energy intensity (final energy consumption per unit of GDP) over the period (efficiency gains in industry). The decline in primary energy intensity helped reduce the CO 2 emissions per unit of GDP (CO 2 intensity), which fell by 1.8 percent/year. Fuel substitutions also played their part in reducing CO 2 intensity: between and, the share of coal in primary energy consumption dropped by 3 percentage points and that of oil by 5 percentage points, while the shares of biomass and electricity rose by 5 percentage points and 1 percentage point, respectively. Figure 4: Energy and CO 2 intensity trends.% -.2% -.4% Power generation trends by source: 64% of CO 2 -free generation The share of CO 2 -free generation in power production is high, at 64 percent: nuclear power accounts for 33 percent of power generation (35 percent in ), hydroelectricity for 18 percent (2 percent in ) and biomass for 13 percent (9 percent in ). The share of coal decreased slightly over the period -, from 24 percent to 22 percent, as did the share of oil (from 3 percent to 1 percent). Power generation from natural gas accounts for 13 percent, compared with 9 percent in. Figure 5: Power generation by source TWh Other* Wind Hydro Nuclear Gas Oil Coal-Lignite %/year -.6% -.8% -1.% *Including biomass, geothermal and solar -1.2% -1.4% -1.6% -1.8% -2.% Primary energy intensity Final energy intensity CO 2 intensity 2. Power generation 2.1. Policies: 33% of renewables in electricity consumption by 22 In accordance with the National Renewable Energy Action Plan, renewables will have to represent 33 percent of electricity consumption by 22. Wind power generation is expected to increase to 6 TWh, with the country s wind capacity growing to 2.1 GW Efficiency of the power sector: low rate of T&D losses and CO 2 emissions The average efficiency of power generation decreased slowly between and, from 42 percent to 4 percent, in line with the efficiency of thermal generation (from 4 percent in to 36 percent in ). The share of combined cycle power plants, the efficiency of which is high, rose to 14 percent in (9 percent in ). Finland has introduced incentives to promote renewable electricity: the State provides investment subsidies (up to 4 percent of the investment) for the construction of renewable power plants and wind farms, or production subsidies for wind, small-hydro and biomass (wood and biogas). New marketbased feed-in tariffs for wind, small-scale CHP and biogas partially entered into force on 1 January Finland Country reports
4 Figure 6: Efficiency of power generation and thermal power plants 5 45 Finland s CO 2 emissions per kwh produced have decreased slightly since and in stood at 2 gco 2 /kwh, which is 4 percent below the EU average. That good performance is the result of the very high share of CO 2 -free generation. Figure 9: CO 2 emissions factor for power generation % Total power generation Thermal power plants gco ₂/kWh Figure 7: Thermal electricity capacity, by technology 12 Steam Gas turbines Combined cycles GW Industry 3.1. Policies: at least 4 TWh of energy savings by 216 Finland s National Energy Efficiency Action Plan sets an energy savings target of 4 TWh (344 ktoe) to be achieved in industry by 216. Of those savings, 64 GWh (55 ktoe) should be achieved through energy audits and voluntary agreements on energy efficiency. The new targets and measures adopted in 21 for industry are expected to lead to savings of up to 8 TWh (688 ktoe) by 22. The rate of T&D losses is very low (under 4 percent) and has followed a decreasing trend since. Figure 8: Electric T&D losses Finland introduced subsidized energy audits for industry (up to 4 percent of audit costs) in and energy efficiency agreements in. Energy audits must lead to energy efficiency measures and are followed by update meetings. Voluntary agreements cover about 85 percent of industrial energy consumption; subsidies can be granted for energy conservation investments (up to 2 percent for conventional technologies and up to 35 percent for new technologies). Energy efficiency measures also target electricity savings, including the improvement of the efficiency of compressed air technology. % Energy consumption trends: overall increase in industrial energy consumption Industrial energy consumption grew by 2 percent/year, on average, between and. The trend then reversed and industrial energy consumption declined by 2 percent in, 4 percent in and 12 percent in, due to the economic downturn. Country reports Finland 4
5 Finland Energy efficiency report Figure 1: Industrial energy consumption Figure 11: Energy consumption of industry, by source 14 1% Mtoe % 8% 7% 6% 5% 4% 3% 2% 1% Biomass Heat Electricity Gas Oil Coal/Lignite % Electricity accounts for 31 percent of industrial energy consumption and biomass 27 percent (32 percent in ); the large share of biomass is explained by the size of the paper industry in Finland. Heat accounts for 17 percent (1 percent in ), followed by oil (11 percent), coal (8 percent) and gas (6 percent). The share of energy-intensive branches in industrial energy consumption is very high in Finland, at nearly 8 percent in (78 percent in ). The paper industry accounts for 6 percent of industrial energy consumption, followed by the chemical (9 percent compared with 5 percent in ), steel (8 percent compared with 12 percent in ) and non-metallic minerals industries (at 3 percent). Figure 12: Energy consumption of industry, by branch 1% 9% 8% 7% 6% 5% 4% 3% Other Paper Non metallic minerals Chemical Steel 2% 1% % 3.3. Energy intensity trends: increase in the energy intensity of the paper industry Between and industrial energy intensity decreased by 2.2 percent/year. Efficiency gains were reported in the chemical industry (1.7 percent/year decrease in energy intensity), the steel sector (2.2 percent/year decease) and the cement branch (4.8 percent/year decrease). However, the unit consumption of paper (energy consumption per ton of paper produced) increased by 1 percent/year, counterbalancing efficiency gains in other branches. 5 Finland Country reports
6 Figure 13: Trends in the energy intensity of industrial branches - - 6% 5% 4% 3% 2% 1% % -1% -2% -3% -4% -5% *Including construction and mining Total* Steel Chemical Cement Paper %/year The share of industrial CHP in industrial electricity consumption is high, at 25 percent in, compared with the EU average of 17 percent. Figure 14: Share of Industrial CHP in industrial consumption 35% 3% 25% 2% 15% 1% 5% % All information or data provided by Enerdata, in any form, is the property of Enerdata and is protected in each country by national laws governing intellectual property. All information or data provided by Enerdata is copyright protected, inclusive of material appearing in a hard copy format or electronically. Data provided by Enerdata are based on compilation and analysis of the best sources in the industry. Enerdata has agreements with those providers to use and publish this data. All pictures Copyright ABB Country reports Finland 6
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