Electricity sector in Finland

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Main article: Energy in Finland

Finland electricity by mode of production 2023*

  Hydro (18.8%)
  Wind (18.1%)
  Solar (0.8%)
  Nuclear (41.0%)
  Wood (12.8%)
  Imports (2.2%)
  Coal (1.9%)
  Oil (0.2%)
  Gas (0.8%)
  Peat (1.4%)
  Other (2.0%)

The electricity sector in Finland relies on nuclear power, renewable energy, cogeneration and electricity import from neighboring countries. Finland has the highest per-capita electricity consumption in the EU.[1] Co-generation of heat and electricity for industry process heat and district heating is common. Finland is one of the last countries in the world still burning peat.[2]

As part of the energy transition Finland has been replacing electricity generation from fossil fuels with nuclear power and renewables. Wind power in particular has grown to be a significant part of electricity generation.[3] A fifth nuclear reactor, Olkiluoto 3 was commissioned in 2023 and increased nuclear power generation by over 50%.

Finland is part of the synchronous grid of Northern Europe.

Consumption and import[edit]

Industry was the majority consumer of electricity between 1990 and 2005 with 52-54% of total consumption. The forest industry alone consumed 30-32%.[4]

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.[5]

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).[6]

In 2022, after the Russian invasion of Ukraine, imports from Russia ended. Yearly net import was down 5 TWh as a result.[7]

Electricity in Finland TWh [6][8][3][9]
Year Consumption Production Net import
2000 79 67 12
2001 81 71 10
2002 84 72 12
2003 85 80 5
2004 87 82 5
2005 85 68 17
2006 90 79 11
2007 90 78 13
2008 87 74 13
2009 81 69 12
2010 88 77 11
2011 84 70 14
2012 85 67 17
2013 84 68 16
2014 83 65 18
2015 82 67 16
2016 85 66 19
2017 85 65 20
2018 87 68 20
2019 86 66 20
2020 82 67 15
2021 87 69 18
2022 82 69 13
2022 82 69 13
2023* 80 78 2

^ Preliminary data[10]

Capacity[edit]

As of 2023, the total capacity of power generation in Finland is 19.7 GW.[11] 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.[12] 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.[13]

In 2022-23, with imports from Russia ended, there were concerns about availability while Olkiluoto 3 was still in testing. Fingrid created a voluntary support mechanism of 500 MW of demand response, which did not need to be called upon.[14] For 2023-24, the Energy Authority found that no capacity reserve was needed with OL3 in operation.[15]

Mode of production[edit]

Electricity by mode of production (%)[3]
Year Hydro Wind Solar Nuclear Coal Oil Gas Peat Wood Other Imports
2005 15.9% 0.2% 0.0% 26.4% 7.2% 0.5% 12.9% 5.0% 10.3% 1.7% 20.1%
2006 12.6% 0.2% 0.0% 24.4% 16.9% 0.5% 13.3% 6.9% 11.1% 1.5% 12.7%
2007 15.5% 0.2% 0.0% 24.9% 14.4% 0.5% 11.3% 7.7% 10.1% 1.7% 13.9%
2008 19.4% 0.3% 0.0% 25.3% 9.1% 0.7% 12.3% 5.6% 10.9% 1.8% 14.6%
2009 15.5% 0.3% 0.0% 27.8% 12.8% 0.6% 11.8% 5.1% 9.7% 1.6% 14.9%
2010 14.5% 0.3% 0.0% 25.0% 15.5% 0.5% 12.5% 6.7% 11.4% 1.6% 12.0%
2011 14.6% 0.6% 0.0% 26.4% 10.8% 0.5% 10.9% 6.0% 12.0% 1.8% 16.4%
2012 19.6% 0.6% 0.0% 25.9% 7.8% 0.3% 7.7% 4.0% 11.8% 1.8% 20.5%
2013 15.1% 0.9% 0.0% 27.0% 11.9% 0.2% 7.9% 3.5% 12.8% 2.0% 18.7%
2014 15.9% 1.3% 0.0% 27.1% 8.9% 0.2% 6.5% 3.8% 12.6% 2.0% 21.5%
2015 20.1% 2.8% 0.0% 27.1% 5.8% 0.2% 6.2% 3.5% 12.3% 2.2% 19.8%
2016 18.4% 3.6% 0.0% 26.2% 7.7% 0.2% 4.3% 3.2% 12.0% 2.3% 22.3%
2017 17.1% 5.6% 0.1% 25.2% 6.5% 0.2% 3.8% 3.0% 12.3% 2.2% 23.9%
2018 15.0% 6.7% 0.1% 25.0% 6.2% 0.3% 4.7% 3.7% 12.7% 2.8% 22.8%
2019 14.2% 7.0% 0.2% 26.6% 4.8% 0.3% 4.4% 3.3% 13.5% 2.5% 23.3%
2020 19.2% 9.7% 0.3% 27.4% 2.8% 0.2% 4.8% 2.4% 12.6% 2.2% 18.5%
2021 17.9% 9.4% 0.3% 26.0% 2.9% 0.2% 4.3% 2.2% 13.9% 2.2% 20.4%
2022 16.3% 14.1% 0.5% 29.7% 4.0% 0.3% 1.1% 2.5% 13.9% 2.3% 15.3%
2023* 18.8% 18.1% 0.8% 41.0% 1.9% 0.2% 0.8% 1.4% 12.8% 2.0% 2.2%

^ Preliminary data[3]

Fossil fuels[edit]

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. By 2020 the share was closer to 10%. This is largely a consequence of cheap imported electricity, although domestic renewables have also increased in their share of production.[16]

In 2019 the parliament passed a law to ban the use of coal for energy production by May 1, 2029.[17] As of 2021 there are no plans to ban other fossil fuels. Despite popular support for banning the use of peat, there is only a commitment to halve its use by 2030.[18][19] However, it is estimated that market forces will reduce peat's energy use to a third of its 2019 level by 2025.[20]

Nuclear power[edit]

This section is an excerpt from Nuclear power in Finland.[edit]
class=notpageimage|
Nuclear power plants in Finland (view)
 Active plants
 Unfinished plants

As of 2023, Finland has five operating nuclear reactors in two power plants, all located on the shores of the Baltic Sea. Nuclear power provided about 34% of the country's electricity generation in 2020.[21] The first research nuclear reactor in Finland was commissioned in 1962 and the first commercial reactor started operation in 1977.[21] The fifth reactor started operation in April 2023.[22]

Finland's nuclear reactors are among the world's most productive, with an average capacity factor of 95% in the 2010s.[21]

Renewable energy[edit]

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 grown to be significant and renewables have surpassed 40% of demand.[3][23]

Wind power[edit]

This section is an excerpt from Wind power in Finland.[edit]
Wind farm in Ii, Finland

Wind power in Finland has been the fastest growing source of electricity in recent years. In 2023, Finland covered 18.2% of the yearly electricity demand with wind power production, which was 18.5% of the domestic production. Wind capacity was up 1.3 GW from the previous year and wind production up 25%.[24] This compares to an average wind power share of 19% in the EU.[25]

By the end of 2022, Finland's wind power capacity reached 5,677 MW with 1,393 turbines installed. That year, wind power production increased by 41% to 11.6 TWh, representing 14.1% of the country's electricity consumption. This growth positioned wind power as the country's third largest electricity source.[26]

According to a 2018 study done by VTT Technical Research Centre of Finland, published in Nature Energy, new wind power technology could cover the entire electricity consumption (86 TWh) of Finland.[27]

Wind power is one of the most popular energy resources among the Finnish public. In 2022 82% of respondents wanted more wind power, which was second only to solar with 90%.[28] Previous results include 90% in September 2007 and 88% in April 2005.[29] In the Pori area of Finland 97% of people supported wind power according to Suomen Hyötytuuli Oy in 2000.[30]

Companies[edit]

Nuclear power in Finland is a major source of electricity. Teollisuuden Voima operates three reactors in Olkiluoto.

Production[edit]

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

Market[edit]

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

Transmission[edit]

Fingrid Oyj is a Finnish national electricity transmission grid operator.

Distribution[edit]

Major distributors are: Helen Oy, Caruna and Elenia. Other companies are Savon Voima [fi] (Savo), Pohjois-Karjalan Sähkö (Northern Karelia, Järvi-Suomen Energia (Central Finland), Kymenlaakson Sähkö (Kymenlaakso) and Loiste (Kajaani and Sotkamo).[31][32]

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.[33] Company interest cost were reduced from the taxable income based on Sipilä Cabinet taxation rules.

Politics[edit]

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).[34] Multiple delays in the construction of the third reactor at the Olkiluoto Nuclear Power Plant (1,600 MW) exacerbated the domestic energy production deficit, until finally starting regular production in April 2023.[35] 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 was estimated to be operational by 2024 and projected to produce 1,200 MW of electricity, but all work was stopped in 2022 due to the Russian invasion of Ukraine.[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[edit]

References[edit]

  1. ^ "Electric power consumption (kWh per capita) - European Union". World Bank. Retrieved 2023-02-24.
  2. ^ "Peat production drops faster than expected in Finland – but may be on the way back". YLE News. 2022-04-19. Retrieved 2022-06-14.
  3. ^ a b c d e "Sähkön hankinta energialähteittäin". Tilastokeskus. Retrieved 2024-04-17.
  4. ^ Statistic 3.1, Year book 2006, Tilastokeskus
  5. ^ Energia, tilastokeskus, T3.01 Electricity import and export by country (Sähkön tuonti ja vienti maittain)
  6. ^ a b "Vuosikertomus 2012". Fingrid. p. 27. Retrieved 1 April 2014.
  7. ^ "Energiavuosi 2022 Sähkö" (PDF). Energiateollisuus ry. 2023-01-12. Archived from the original (PDF) on 2023-01-28. Retrieved 2023-01-12.
  8. ^ Energiaennakko 2009 Tilastokeskus 2010
  9. ^ "Sähkön hankinta ja kokonaiskulutus". Tilastokeskus. Retrieved 2023-11-03.
  10. ^ "Energiavuosi 2023 Sähkö". Energiateollisuus ry. 2024-01-11. Retrieved 2024-01-11.
  11. ^ "Toimitusvarmuus". Energiavirasto. Retrieved 2023-04-29.
  12. ^ "Nordic Winter Power Balance Forecast 2019 – 2020" (PDF). Nordic Operations Group. 2019-11-07. Retrieved 2020-06-01.
  13. ^ "Sähköjärjestelmän toiminta talvella 2019 – 2020" (PDF). Fingrid. 2020-03-27. Retrieved 2020-06-01.
  14. ^ "Sähköä riitti talvella - leuto talvi ja säästötoimet avainasemassa". Fingrid. 2023-04-17. Retrieved 2023-04-29.
  15. ^ "Energiavirasto ei hanki tehoreservikapasiteettia kaudelle 1.11.2023 – 31.10.2024". Energy Authority. 2023-04-28. Retrieved 2023-04-29.
  16. ^ "Production and total consumption of electricity, GWh by Source, Year and Data". Retrieved 2017-11-19.
  17. ^ "The act banning the use of coal for energy generation in 2029 to enter into force in early April". 2019-03-28. Retrieved 2021-04-16.
  18. ^ "Most Finns support a ban on peat burning, poll suggests". Yle. 2019-09-11. Retrieved 2021-04-16.
  19. ^ "Ministry unveils plan to phase out peat burning in Finland". Yle. 2021-03-31. Retrieved 2021-04-16.
  20. ^ "Energiaturpeen kysyntä laskee rajusti". Keskisuomalainen. 2020-11-16. Retrieved 2021-11-20.
  21. ^ a b c "Nuclear Power in Finland". World Nuclear Association. Retrieved 12 November 2022.
  22. ^ "Regular electricity production has started at Olkiluoto 3 EPR". TVO. 2023-04-16.
  23. ^ Preliminary Energy Statistics 2009 Finnish statistical center 24.3.2010, (Energiaennakko 2009 - taulukot Excel), Electricity T3.1
  24. ^ "Energiavuosi 2023 Sähkö". Energiateollisuus ry. 2024-01-11. Retrieved 2024-01-14.
  25. ^ "The EU built a record 17 GW of new wind energy in 2023 – wind now 19% of electricity production". 2024-01-12. Retrieved 2024-01-14.
  26. ^ "Finland - Country Commercial Guide". International Trade Administration, U.S. Department of Commerce. 2023-11-20.
  27. ^ Rinne, Erkka; Holttinen, Hannele; Kiviluoma, Juha; Rissanen, Simo (2018-05-14). "Effects of turbine technology and land use on wind power resource potential". Nature Energy. 3 (6): 494–500. Bibcode:2018NatEn...3..494R. doi:10.1038/s41560-018-0137-9. ISSN 2058-7546. S2CID 158062616.
  28. ^ "Energia-asenteet 2022". 2022-12-08. Retrieved 2023-03-01.
  29. ^ Valtaosa suomalaisista kannattaa tuulivoiman lisäämistä, Helsingin Sanomat, 3.10.2007 A4
  30. ^ Suomen Hyötytuuli Oy, Porin Tahkoluodon ympäristövaikutusten selostus Pöyry December 2006
  31. ^ "I Metsä Groups kartsystem finns redan 235 000 kilometer ellinjer - betydande förbättring av arbetssäkerheten". Metsä Group. Euroinvester. 17 January 2017.
  32. ^ "Infranode investerar i finskt enegiföretag". Tidningen Fastighetsaktien. Retrieved 30 August 2019.
  33. ^ Hallitus antaa Carunan verovälttelyn jatkua Finnwatch 26/10/2018
  34. ^ "Sähkönkulutus nousi ensimmäistä kertaa yli 15 000 MW:n 7.1.2016". Fingrid. 7 January 2016. Archived from the original on 26 January 2016. Retrieved 21 January 2016.
  35. ^ "Regular electricity production has started at Olkiluoto 3 EPR". TVO. 16 April 2023. Retrieved 17 September 2023.
  36. ^ "Fennovoima shuts down construction of nuclear plant in Pyhäjoki". Yle. 24 May 2022. Retrieved 7 June 2022.
  37. ^ Palomaa, Antti (25 April 2016). "Supo: Ulkomainen tiedustelu pyrki vaikuttamaan Suomen energiapolitiikkaan". Yle Uutiset. Yle. Retrieved 25 April 2016.
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