Electricity sector in Finland

The electricity sector in Finland relies on nuclear power, forest industry black liquor and wood consumption, cogeneration and electricity import from neighboring countries. In 2008 the consumption of electricity in Finland was 17 036 kWh/person. The European union (15) average was 7 409 kWh/person.[1] Co-generation of heat and electricity for industry process heat and district heating is common in Finland.

Main article: Energy in Finland
Nuclear power in Finland is a major source of electricity. A third reactor is under construction in Olkiluoto, with a fourth reactor planned. A third plant in Pyhäjoki is also approved and in planning.

Consumption and import

Industry was the majority consumer of electricity between 1990 and 2005 with 52-54% of total consumption. The forest industry alone consumed 30-32%.[2]

Between 2000 and 2006, up to 7 TWh per year was imported from Sweden and up to 11.5 TWh from Russia. Net imports during this time varied between 7 TWh to Sweden and 7 TWh from Sweden, and 4 to 11 TWh from Russia. Since 2007, some electricity has also been imported from Estonia.[3]

In 2012, most of the imports were from Sweden (14.4 TWh net import) with Russia also contributing to the net imbalance (4.4 TWh import only), while exports to Estonia were larger than imports (1.1 TWh net export).[4]

Electricity in Finland TWh [4][5][6]
Year Consumption Production Netimport
2000796712
2001817110
2002847212
200385805
200487825
2005856817
2006907911
2007907813
2008877413
2009816912
2010887711
2011847014
2012856717
2013846816
2014836518
2015826716
2016856619
2017856520
2018876820
2019*866620

^ Preliminary data

Capacity

As of 2020, the total capacity of power generation in Finland is 17.5 GW.[7] However, not all of that is available at the same time and an increasing amount is intermittent generation, mostly from wind power (see below).

The national grid operator Fingrid, together with TSOs from other Nordic countries, produces yearly estimates about the availability of power in the winter demand peak. In 2019-2020 they estimated a peak Finnish demand of 15.3 GW, during which Finland would have 11.9 GW of production capacity, not including capacity reserves. That would have meant a shortfall of 3.4 GW to be imported from neighbors.[8] Due to a mild winter and industrial strikes the actual demand peak was only 12.4 GW and availability was never in question. No capacity reserve was activated.[9]

Mode of production
Electricity by mode of production (%)[6]
Year Hydro Wind Solar Nuclear Coal Oil Gas Peat Wood Other Imports
200515.9%0.2%0.0%26.4%7.2%0.5%12.9%5.0%10.3%1.7%20.1%
200612.6%0.2%0.0%24.4%16.9%0.5%13.3%6.9%11.1%1.5%12.7%
200715.5%0.2%0.0%24.9%14.4%0.5%11.3%7.7%10.1%1.7%13.9%
200819.4%0.3%0.0%25.3%9.1%0.7%12.3%5.6%10.9%1.8%14.6%
200915.5%0.3%0.0%27.8%12.8%0.6%11.8%5.1%9.7%1.6%14.9%
201014.5%0.3%0.0%25.0%15.5%0.5%12.5%6.7%11.4%1.6%12.0%
201114.6%0.6%0.0%26.4%10.8%0.5%10.9%6.0%12.0%1.8%16.4%
201219.6%0.6%0.0%25.9%7.8%0.3%7.7%4.0%11.8%1.8%20.5%
201315.1%0.9%0.0%27.0%11.9%0.2%7.9%3.5%12.8%2.0%18.7%
201415.9%1.3%0.0%27.1%8.9%0.2%6.5%3.8%12.6%2.0%21.5%
201520.1%2.8%0.0%27.1%5.8%0.2%6.2%3.5%12.3%2.2%19.8%
201618.4%3.6%0.0%26.2%7.7%0.2%4.3%3.2%12.0%2.3%22.3%
201717.1%5.6%0.1%25.2%6.5%0.2%3.8%3.0%12.3%2.2%23.9%
201815.0%6.7%0.1%25.0%6.2%0.3%4.7%3.7%12.7%2.8%22.8%
2019*14.3%7.0%0.2%26.6%4.9%0.3%4.5%3.3%13.0%2.7%23.3%

^ Preliminary data [6]

Fossil fuels

Except for peat, which is variously classed as either a fossil fuel or a slow-renewable fuel, Finland imports all the fossil fuels used for electricity production. Coal and natural gas account for most of the production, with some oil generators acting mostly as reserve. The use of fossil fuels has fallen from highs over 30% in 2003-2004 to 20% or below in 2012-2014. This is largely a consequence of cheap imported electricity, although domestic renewables have also increased in their share of production. [10]

Nuclear power
This section is an excerpt from Nuclear power in Finland[edit]

As of 2019, Finland has four nuclear reactors in two power plants, all located on the shores of the Baltic Sea, and providing about 30% of the country's electricity. The first reactor came into operation in 1977.[11] A fifth reactor is under construction, scheduled to begin commercial operation in March 2021, and a sixth reactor is planned.[12] If all planned projects are completed, the share of electricity produced by nuclear could double, reaching around 60%.[11]

Finland's nuclear reactors are among the world's most productive, with an average capacity factor of 95% in the 2010s.[11]

Renewable energy
Main article: Renewable energy in Finland

Between 2005-2014, Finland produced 25-30% of electricity as a percentage of demand from renewable energy. The largest source is hydropower (15-20%) which fluctuates yearly depending on rainfall, causing the share of renewable generation to also vary. Other major sources are wood-based energy resources like black liquor from the forest industry, accounting for approximately 12% on average. In recent years wind power (see below) has also gained a foothold. [10][13]

Wind power
Main article: Wind power in Finland

In 2017, Finland covered 5.6% of the yearly electricity demand with wind power production, up from 3.6%, 2.8% and 1.3% in the preceding years.[14][15][16] As of November 2017, the record peak was 1.5 GW on November 8, when domestic wind power covered 14% of the hourly electricity demand.[17]

EU and Finland wind energy capacity (MW)[18][19][20][21][22][23][24][25][26][27][28]
Country 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998
EU-27191,579178,243168,116153,308141,158128,751117,289106,45493,95784,07474,76764,71256,51748,06940,51134,38328,59923,15917,31512,8879,6786,453
Finland2,2842,0412,1131,5391,001627448288199197147142109868282524339383817

In 2014 the government was planning to reduce local municipal income from wind power by taking half of the tax income to the state (tax of real estate). This was suggested since government was afraid that the wind power market was overheated in Finland. The reduced tax was meant to lower interest in wind power investments in the municipalities.[29]

After 2017 Finnish renewable energy subsidies lapsed after two years of record growth in wind installations. The government had started negotiations about an auction system to replace them, but did not complete the process before the previous system expired. 2018 was expected to see little growth in wind generation as a result.[30]

In late 2018 the Government held an auction for up to 1.4 TWh of annual renewable electricity generation. All the bids received were for wind projects. In March 2019 the results were announced with seven projects totaling 1.36 TWh accepted. The average winning premium was 2.49 €/MWh, with successful bids ranging from 1.27 to 3.97 €/MWh.[31]

Companies

Production

Major producers in Finland include: Fortum, Pohjolan Voima, Teollisuuden Voima and Helsingin Energia.

Market

Nord Pool Spot is the shared power market for Finland and nearby countries.

Transmission

Fingrid Oyj is a Finnish national electricity transmission grid operator.

Distribution

Major distributors are: Helen Oy, Caruna and Elenia. Other companies are Savon Voima (Savo), Pohjois-Karjalan Sähkö (Northern Karelia, Järvi-Suomen Energia (Central Finland), Kymenlaakson Sähkö (Kymenlaakso) and Loiste (Kajaani and Sotkamo).[32][33]

Caruna in the south of Finland is owned mostly (80%) by Australian and Dutch holding and property companies. In 2017 Caruna's turn-over was €145 million and state tax rate 4 % (€6 million). In 2017 Caruna paid its stakeholders 8.17 % interest (77 million) while market loans were 1.5–3 % interest. [34][34] Company interest cost were reduced from the taxable income based on Sipilä Cabinet taxation rules.

Politics

In 2016 there has been renewed discussion about Finland's energy policy. Finland imports over 20% of the electricity used at peak usage. For example, in the hour between 17-18 on January 7, 2016, during a period of extreme cold, Finland imported 4,300 MW (28.5%) out of a record 15,100 MW of total usage (average over 1 hour).[35] The delays in the construction of the third reactor at the Olkiluoto Nuclear Power Plant (est. 1,600 MWe when completed), which was projected to be operating commercially by 2010 but is now being estimated to be completed no earlier than 2018, have caused a significant domestic energy production deficit. A consortium of Finnish industry and power companies called Fennovoima has applied and been granted a permission to build another new nuclear power plant, delivered by Russia's Rosatom, which also has a 1/3 stake on the power plant. This has caused some concern among observers about Russia being able to manipulate Nordic electricity prices or use the power plant as a leverage in conflict situations. The plant is estimated to be operational by 2024 and projected to produce 1,200 MW of electricity.

The government of Finland has attempted to decrease the dependency on Russian energy by investing heavily in wind power, solar power and efficient energy use, but these measures have hardly been effective.[36] The Finnish Security Intelligence Service (Supo) indicated in 2016 that foreign intelligence activity in Finland was aimed at influencing decision-making in energy policy.[37]

See also

References
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  2. Statistic 3.1, Year book 2006, Tilastokeskus
  3. Energia, tilastokeskus, T3.01 Electricity import and export by country (Sähkön tuonti ja vienti maittain)
  4. "Vuosikertomus 2012". Fingrid. p. 27. Retrieved 1 April 2014.
  5. Energiaennakko 2009 Tilastokeskus 2010
  6. "015 -- Sähkön tuotannon energialähteet". Retrieved 2020-04-17.
  7. "Toimitusvarmuus". Energiavirasto. Retrieved 2020-06-01.
  8. "Nordic Winter Power Balance Forecast 2019 – 2020" (PDF). Nordic Operations Group. 2019-11-07. Retrieved 2020-06-01.
  9. "Sähköjärjestelmän toiminta talvella 2019 – 2020" (PDF). Fingrid. 2020-03-27. Retrieved 2020-06-01.
  10. "Production and total consumption of electricity, GWh by Source, Year and Data". Retrieved 2017-11-19.
  11. "Nuclear Power in Finland". World Nuclear Association. Retrieved 2 January 2020.
  12. "Olkiluoto 3 reactor delayed yet again, now 12 years behind schedule". Yle Uutiset. 2019-12-20. Retrieved 2020-01-02.
  13. Preliminary Energy Statistics 2009 Finnish statistical center 24.3.2010, (Energiaennakko 2009 - taulukot Excel), Electricity T3.1
  14. Suomen Tuulivoimayhdistys ry (2015-01-21). "Yli miljardi kWh – kotimainen tuulivoima merkittävään rooliin vuonna 2014". Retrieved 2015-02-20.
  15. Suomen Tuulivoimayhdistys ry (2016-01-20). "Ennätyksellinen tuulivoimavuosi 2015 - tuplattu tuotanto ja jätti-investoinnit". Retrieved 2016-09-14.
  16. "Energy year 2017 - Electricity". Finnish Energy. 2018-01-23. Retrieved 2018-01-26.
  17. "Tuulivoimatuotanto ylitti ensi kertaa 1500 megawatin rajan". Fingrid. 2017-11-08. Retrieved 2017-11-19.
  18. EWEA Staff (2010). "Cumulative installed capacity per EU Member State 1998 - 2009 (MW)". European Wind Energy Association. Retrieved 2010-05-22.
  19. EWEA Staff (February 2011). "EWEA Annual Statistics 2010" (PDF). European Wind Energy Association. Retrieved 2011-01-31.
  20. EWEA Staff (February 2012). "EWEA Annual Statistics 2011" (PDF). European Wind Energy Association. Retrieved 2011-02-18.
  21. Wind in power: 2012 European statistics February 2013
  22. VTT (2010)
  23. 2013
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  26. "Wind in power 2017 European statistics" (PDF). February 2018. Retrieved February 23, 2018.
  27. "Wind Energy in Europe in 2018 European" (PDF). February 2019. Retrieved March 28, 2019.
  28. "Wind Energy in Europe in 2019" (PDF). February 2020. Retrieved February 19, 2020.
  29. Tuulivoimalakuntien verotuloja aiotaan leikata Helsingin Sanomat 19.2.2014 A13
  30. "Tuulivoimavuosi 2017". Tuulivoimayhdistys. 2018-01-23. Retrieved 2018-01-26.
  31. "Support for seven projects awarded through auction - the average price of accepted tenders EUR 2.5 per MWh". Energy Authority. 2019-03-27. Retrieved 2019-03-28.
  32. "I Metsä Groups kartsystem finns redan 235 000 kilometer ellinjer - betydande förbättring av arbetssäkerheten". Metsä Group. Euroinvester. 17 January 2017.
  33. "Infranode investerar i finskt enegiföretag". Tidningen Fastighetsaktien. Retrieved 30 August 2019.
  34. Hallitus antaa Carunan verovälttelyn jatkua Finnwatch 26/10/2018
  35. "Sähkönkulutus nousi ensimmäistä kertaa yli 15 000 MW:n 7.1.2016". Fingrid. Fingrid. 7 January 2016. Retrieved 21 January 2016.
  36. Korhola, Eija-Riitta (20 January 2016). "Kyllä Siperia lopettaa". Levottomia ajatuksia jäsennellysti. Uusi Suomi Puheenvuoro. Retrieved 21 January 2016.
  37. Palomaa, Antti (25 April 2016). "Supo: Ulkomainen tiedustelu pyrki vaikuttamaan Suomen energiapolitiikkaan". Yle Uutiset. Yle. Retrieved 25 April 2016.
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