The electricity sector in
Finland
Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of B ...
relies on
nuclear power
Nuclear power is the use of nuclear reactions to produce electricity. Nuclear power can be obtained from nuclear fission, nuclear decay and nuclear fusion reactions. Presently, the vast majority of electricity from nuclear power is produced b ...
, forest industry
black liquor and wood consumption,
cogeneration
Cogeneration or combined heat and power (CHP) is the use of a heat engine or power station to generate electricity and useful heat at the same time.
Cogeneration is a more efficient use of fuel or heat, because otherwise- wasted heat from elect ...
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.
[Energiläget i siffror 2009]
Table 25: Specific electricity production per inhabitant with breakdown by power source, 2008, kWh/person, Energimyndigheten Sweden Co-generation of heat and electricity for industry process heat and district heating is common in Finland. Finland is one of the last countries in the world still
burning peat.
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%.
[Statistic 3.1, Year book 2006, Tilastokeskus]
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.
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).
Preliminary data
Capacity
, the total capacity of power generation in Finland is 17.5 GW. 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. 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.
Mode of production
Preliminary data
Fossil fuels
Except for
peat
Peat (), also known as turf (), is an accumulation of partially decayed vegetation or organic matter. It is unique to natural areas called peatlands, bogs, mires, moors, or muskegs. The peatland ecosystem covers and is the most efficien ...
, 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.
In 2019 the parliament passed a law to ban the use of coal for energy production by May 1, 2029. 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. However, it is estimated that market forces will reduce peat's energy use to a third of its 2019 level by 2025.
Nuclear power
Renewable energy
Between 2005-2014,
Finland
Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of B ...
produced 25-30% of electricity as a percentage of demand from
renewable energy
Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
. The largest source is
hydropower
Hydropower (from el, ὕδωρ, "water"), also known as water power, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, converting the Pot ...
(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.
[Preliminary Energy Statistics 2009](_blank)
Finnish statistical center 24.3.2010, (Energiaennakko 2009 - taulukot Excel), Electricity T3.1
Wind power
Companies
Production
Major producers in Finland include:
Fortum
Fortum Oyj is a Finnish state-owned energy company located in Espoo, Finland. In addition to Finland, it focuses on Germany and other countries in Central Europe, Great Britain, Russia and the Nordic region. Fortum operates power plants, inc ...
,
Pohjolan Voima
Pohjolan Voima Oy (PVO; English: Northern Power Company Ltd.) is the second biggest Finnish energy company, which owns hydropower and thermal power plants (including biofuel-fired power plants).
Shareholders
Pohjolan Voima is a founder and main sh ...
,
Teollisuuden Voima
Teollisuuden Voima Oyj (TVO; sv, Industrins Kraft Abp, Industrial Power Corporation) is a Finnish nuclear power company owned by a consortium of power and industrial companies.
The biggest shareholders are Pohjolan Voima and Fortum. The company ...
and
Helsingin Energia
Helen Oy, stylized as HELEN, formerly known as Helsingin Energia (Finnish) and ''Helsingfors Energi'' (Swedish), is one of the largest energy companies in Finland. The company, founded in 1909 produces and sells electricity, district heating and ...
.
Market
Nord Pool Spot
Nord Pool AS is a pan-European power exchange. Nord Pool has a main office in Oslo and further offices in Stockholm, Helsinki, Tallinn, Berlin and London. The company is owned by the European exchange operator Euronext as well as TSO Holding, ...
is the shared power market for Finland and nearby countries.
Transmission
Fingrid
Fingrid Oyj is a Finnish national electricity transmission grid operator. It is owned by the Finnish state (53.1 %) and various financial and insurance institutions (46.9 %). In 2011, power companies Fortum
Fortum Oyj is a Finnish state-ow ...
Oyj is a
Finnish
Finnish may refer to:
* Something or someone from, or related to Finland
* Culture of Finland
* Finnish people or Finns, the primary ethnic group in Finland
* Finnish language, the national language of the Finnish people
* Finnish cuisine
See also ...
national
electricity transmission grid operator.
Distribution
Major
distributors
A distributor is an enclosed rotating switch used in spark-ignition internal combustion engines that have mechanically timed ignition. The distributor's main function is to route high voltage current from the ignition coil to the spark plugs ...
are:
Helen Oy
Helen Oy, stylized as HELEN, formerly known as Helsingin Energia (Finnish) and ''Helsingfors Energi'' (Swedish), is one of the largest energy companies in Finland. The company, founded in 1909 produces and sells electricity, district heating and ...
,
Caruna
Caruna distributes electricity and maintains, repairs and builds a weatherproof electricity network for its 690,000 customers in South, Southwest and West Finland, as well as in the city of Joensuu, the sub-region of Koillismaa and Satakunta. Car ...
and
Elenia
Elenia is a Finnish distributor of electrical energy with 430,000 customers. It covers more than 100 municipalities in Tavastia, Pirkanmaa, Keski-Suomi, Southern Ostrobothnia
South Ostrobothnia ( fi, Etelä-Pohjanmaa; sv, Södra Österbott ...
. Other companies are (
Savo
Savo may refer to:
Languages
* Savo dialect, forms of the Finnish language spoken in Savonia
* Savo language, an endangered language spoken on Savo
People
* Savo (given name), a masculine given name from southern Europe (includes a list of people ...
), Pohjois-Karjalan Sähkö (
Northern Karelia
North Karelia ( fi, Pohjois-Karjala; sv, Norra Karelen) is a region in eastern Finland. It borders the regions of Kainuu, North Savo, South Savo and South Karelia, as well as Russia's Republic of Karelia. It is the easternmost region of Finlan ...
, Järvi-Suomen Energia (
Central Finland
Central Finland ( fi, Keski-Suomi; sv, Mellersta Finland) is a Regions of Finland, region ( / ) in Finland. It borders the regions of Päijät-Häme, Pirkanmaa, South Ostrobothnia, Central Ostrobothnia, North Ostrobothnia, Northern Savonia, No ...
), Kymenlaakson Sähkö (
Kymenlaakso
Kymenlaakso ( sv, Kymmenedalen; " Kymi/Kymmene Valley") is a region in Finland. It borders the regions of Uusimaa, Päijät-Häme, South Savo and South Karelia and Russia (Leningrad Oblast). Its name means literally ''The Valley of River Kymi'' ...
) and Loiste (
Kajaani
Kajaani (; sv, Kajana) is the most populous town and the capital of the Kainuu Region of Finland. It is located southeast of Lake Oulu (Oulujärvi), which drains into the Gulf of Bothnia through the Oulu River (Oulujoki). As of , it had a pop ...
and
Sotkamo
Sotkamo is a municipality of Finland, located in the Kainuu region about east of Kajaani, the capital of Kainuu. Vuokatti, in west of Sotkamo, is the most populous village in the municipality and also a popular skiing resort. Both Hiidenportti Na ...
).
Caruna
Caruna distributes electricity and maintains, repairs and builds a weatherproof electricity network for its 690,000 customers in South, Southwest and West Finland, as well as in the city of Joensuu, the sub-region of Koillismaa and Satakunta. Car ...
in the south of Finland is owned mostly (80%) by
Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
n and
Dutch
Dutch commonly refers to:
* Something of, from, or related to the Netherlands
* Dutch people ()
* Dutch language ()
Dutch may also refer to:
Places
* Dutch, West Virginia, a community in the United States
* Pennsylvania Dutch Country
People E ...
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.
[Hallitus antaa Carunan verovälttelyn jatkua](_blank)
Finnwatch 26/10/2018 Company interest cost were reduced from the taxable income based on
Sipilä Cabinet
The cabinet of Juha Sipilä was the 74th government of Finland, from 2015 to 2019. It was formed following the parliamentary election of 2015 and formally appointed by President Sauli Niinistö on 29 May 2015. From June 2017, the cabinet consis ...
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). The delays in the construction of the third reactor at the
Olkiluoto Nuclear Power Plant
The Olkiluoto Nuclear Power Plant ( fi, Olkiluodon ydinvoimalaitos, sv, Olkiluoto kärnkraftverk) is one of Finland's two nuclear power plants, the other being the two-unit VVER Loviisa Nuclear Power Plant. The plant is owned and operated by ...
(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 2022, have caused a significant domestic energy production deficit. A consortium of Finnish industry and power companies called
Fennovoima
Fennovoima Ltd ( fi, Fennovoima Oy) is a nuclear power company established by Russian state's nuclear company Rosatom and a consortium of Finnish state-owned power and industrial companies.
The company does not own any nuclear capacities; however ...
has applied and been granted a permission to build another
new nuclear power plant, delivered by Russia's
Rosatom
Rosatom, ( rus, Росатом, p=rɐsˈatəm}) also known as Rosatom State Nuclear Energy Corporation, the State Atomic Energy Corporation Rosatom or Rosatom State Corporation, is a Russian state corporation headquartered in Moscow that speciali ...
, 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
On 24 February 2022, in a major escalation of the Russo-Ukrainian War, which began in 2014. The invasion has resulted in tens of thousands of deaths on both sides. It has caused Europe's largest refugee crisis since World War II. An ...
.
The
Finnish Security Intelligence Service (Supo) indicated in 2016 that foreign intelligence activity in Finland was aimed at influencing decision-making in energy policy.
See also
*
Energy in Finland
Energy in Finland describes energy and electricity production, consumption and import in Finland. Energy policy of Finland describes the politics of Finland related to energy. Electricity sector in Finland is the main article of electricity in ...
*
Nordic energy market
Nordic electricity market is a common market for electricity in the Nordic countries. It is one of the first free electric-energy markets in Europe and is traded in NASDAQ OMX Commodities Europe and Nord Pool Spot. In 2003, the largest market shar ...
*
Economy of Finland
The economy of Finland is a highly industrialised, mixed economy with a per capita output similar to that of western European economies such as France, Germany and the United Kingdom. The largest sector of Finland's economy is services at 72.7 p ...
References
{{Europe topic, Electricity sector in