Finland Energy efficiency report

Transcription

1 Finland Energy efficiency report Objectives: o 35 TWh/year of energy savings by 216 o 44 TWh/year of energy savings by 22, including 11 TWh in industry Overview - (%/year) Primary intensity (EU=1)¹ % - CO 2 intensity (EU=1) % - CO 2 emissions per capita (in tco2/cap) % - Power generation - (%/year) Efficiency of thermal power plants (in %) % - Rate of electricity T&D losses (in %) % - CO 2 emissions per kwh generated (in gco2/kwh) % - Industry - (%/year) Energy intensity (EU=1) % + Share of industrial CHP in industrial consumption (in %) % -- Unit consumption of steel (in toe/t)* % -- * and - for steel ++ Among the best performing countries + Above the EU average 1 - Below the EU average 1 --Among the worst performing countries Latest update: April The European Union, as the best performing region, is used as the benchmark.

2 1. Overview 1.1. Policies: 44 TWh of energy savings by 22 In June Finland adopted its second National Energy Efficiency Action Plan (NEEAP) that updated the first one (), which had set an energy savings target of 17.8 TWh (1.5 Mtoe) for the period between and 216. The new NEEAP energy savings target is set at 24.7 TWh (2 Mtoe) by 216, of which 58 percent should be achieved in buildings, 13 percent in transport, 11 percent in industry and 7 percent in agriculture. Including the efficiency measures not imposed by the European Directive on energy efficiency (ESD) in the industrial and energy sectors, energy savings should amount to 34.9 TWh (3 Mtoe) by 216. The second NEEAP also raises the energy savings target set in the Long-Term Climate and Energy Strategy () from 37 TWh to nearly 44 TWh by 22. Of these savings, 77 percent (about 34 TWh) should be achieved through measures related to the ESD and 1 TWh should come from efficiency measures in industry and the energy sector. Energy audits for buildings and production processes were introduced in. An Energy Aid System () grants subsidies for efficiency projects (up to 4 percent of the cost of energy audits, but up to 5 percent for SMEs and up to 6 percent for municipalities). Between and consumers spent a total of 72 million euros (94 million US dollars) on energy audits for buildings and production processes, and around 45 percent of those audits were subsidized. More than half of these subsidies were allocated to industry (56 percent), 22 percent to local administrations, 14 percent to the private service sector and the remaining 8 percent to the energy sector Energy consumption trends: high consumption per capita compared with the EU average Energy consumption per capita in Finland is almost double the EU average, at 6.4 toe in. Total energy consumption increased regularly between and (+1.9 percent/year), when it stabilized at about 35 Mtoe. Finland posted a 5.7 percent drop in its energy consumption in due to the economic crisis, and after a 9.4 percent hike in, primary consumption dipped again in (-5.2 percent). Figure 1: Energy consumption trends by sector 4 35 Other Industry Power generation 3 25 Mtoe The contributions of industry and the power sector in the country s total energy consumption have been almost stable since, at about 37 percent and 18 percent, respectively. Finland s energy mix is quite diversified: oil covered 26 percent of total energy needs in, followed by biomass with 23 percent, nuclear power with 17 percent, coal with 16 percent and gas with 1 percent. Hydroelectricity and power imports represented 3 percent each of total consumption. Finland Country reports 2

3 Electricity consumption, which grew by 2.3 percent/year between and, dropped by 3.9 percent in and by 6.4 percent in. That fall was linked to the sharp decrease in industrial electricity consumption (-7.6 percent in and -16 percent in ). After an 8.2 percent resumption in, power consumption dipped again (-3.6 percent) in to 82 TWh, ie close to its level. Industry is the largest electricity consuming sector and currently accounts for 48 percent of electricity consumption, although its share is decreasing (56 percent in ). Figure 2: Electricity consumption trends by sector TWh Industry Others 1.3. Energy efficiency trends: slight improvement in energy intensity Total energy intensity (primary energy consumption per unit of GDP) decreased by 1 percent/year, on average, between and, with the fastest rate of reduction seen since (1.3 percent/year). Industry contributed most to the decrease in energy intensity (around 7 percent), while efficiency gains in the power sector accounted for 2 percent. Figure 3: Energy intensity trends.% % -.4% %/year -.6% -.8% -1.% -1.2% -1.4% Other sectors : buildings, transport and agriculture Industry Power generation Finland Country reports 3

4 2. Power generation 2.1. Policies: voluntary agreements and promotion of CHP Finland s main measures for the power sector are energy efficiency agreements, including subsidized annual energy audits (): the Energy Production operational program for power generation companies; and the Energy Services operational program for district heating companies and power transmission and distribution companies. The Energy Production operational program grouped together 33 businesses with about 2 premises in June, covering 93 percent of Finland s electricity production and 76 percent of its heating production. These companies are committed to a primary energy savings target of 1 TWh as well as another 1 TWh in energy savings linked to increased energy efficiency in electricity production by 216. The Energy Services operational program is directed at district heating and electricity distribution companies, and sets an energy savings target of at least 5 percent on their own energy use by 216. This measure is expected to save about 3 GWh by 216. Finland has introduced incentives to promote CHP: the development of CHP installations has been driven by energy tax exemptions (mainly carbon tax), and on 1 January a new market-based feed-in tariff for smallscale CHP partially entered into force. In 212, CHP accounted for 3 percent of the electricity generation and 69 percent of heat production 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 38 percent in ). The share of gas combined cycle power plants rose slightly, from 9 percent in to 15 percent in. The average efficiency of the power sector is influenced by the generation mix, with around 7 percent of electricity produced from low-efficiency generation modes: nearly 1/3 from nuclear power plants, 23 percent from coal-fired power plants and 15 percent from biomass () % Figure 4: Efficiency of power generation and thermal power plants Total power generation Thermal power plants GW 12 1 Figure 5: Thermal electricity capacity, by technology Steam Gas turbines Combined cycles Finland Country reports 4

5 The rate of T&D losses is very low (3 percent, ie half the EU average) and has followed a decreasing trend since Figure 6: Electric T&D losses % Industry 3.1. Policies: nearly 11 TWh of energy savings by 216 Finland s second National Energy Efficiency Action Plan () set an energy savings target of 2.6 TWh by 216 in industry outside the ETS; including companies under the ETS, total energy savings in industry could reach nearly 11 TWh by 216. These savings should be achieved through energy audits in industry (1.9 TWh/year by 22) and through voluntary agreements with energy-intensive industries and SMEs (8.2 TWh/year and.5 TWh/year, respectively, by 22). 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 savings 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. Between and industry invested 41 million euros (53 million US dollars) in energy audits and received 17.5 million euros (23 million US dollars) in subsidies Energy consumption trends: overall increase in industrial energy consumption Industrial energy consumption grew rapidly between and (+2.4 percent/year) and then grew at a slower pace between and (+.9 percent/year). Since then it has been following a downward trend, with a sharp drop in (-16 percent) as Finland was hit by the global economic downturn. Despite a 14 percent hike in, energy demand from industry dipped again in (-2 percent), bringing it back to its level. Finland Country reports 5

6 Figure 7: Trends in industrial energy consumption Mtoe Electricity accounts for 31 percent of industrial energy consumption and biomass for 26 percent (shares relatively stable since ); the large share of biomass is explained by the size of the paper industry in Finland. Heat accounts for 16 percent (11 percent in ), followed by oil and coal (11 percent each), and gas (5 percent). The share of energy-intensive branches in industrial energy consumption is very high in Finland, at 78 percent in, with the paper industry playing a dominant role (56 percent). The share of the other energy-intensive industries is low compared to other European countries: steel accounts for 11 percent, chemicals for 8.5 percent and non-metallic minerals (mainly cement) for less than 3 percent. 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Figure 8: Energy consumption of industry, by source Biomass Heat Electricity Gas Oil Coal/Lignite 1% Figure 9: Energy consumption of industry, by branch 9% 8% 7% 6% 5% 4% 3% 2% 1% % Other Paper Non metallic minerals Chemical Steel Finland Country reports 6

7 3.3. Energy intensity trends: efficiency gains in the paper branch Between and industrial energy intensity decreased by 1.5 percent/year. Efficiency gains were mainly reported in the cement industry (1.7 percent/year decrease in the energy consumption per ton of cement). However, a slight increase was seen in the unit consumption of the two largest energy-intensive branches, namely paper (1 percent/year hike between and ) and steel (+.7 percent/year). Figure 1: Trends in the energy intensity of industrial branches 2.% 1.% %/year.% -1.% -2.% -3.% -4.% -5.% -6.% - - *Including construction and mining Total* Steel Chemical Cement Paper, Odyssee The share of industrial CHP in industrial electricity consumption is slightly higher than the EU average, at 19 percent in (18 percent in the EU). Figure 11: Share of industrial CHP in industrial consumption 35% 3% 25% 2% 15% 1% 5% % Finland Country reports 7

8 Between and the energy intensity of the manufacturing industry fell by 1.7 percent/year. This improvement was entirely due to changes in the structure of the Finnish industry (rising share of less energyintensive branches in the industrial value added), since energy intensity at constant structure increased slightly. Figure 12: Trends in the energy intensity of manufacturing and structural effect.5%.% -.5% - %/year -1.% -1.5% -2.% -2.5% Real variation Change at constant structure Structural effect Finland Country reports 8