Project Lead, M Sc. (tech.) Karoliina Auvinen HP4nZEZ seminar Finlandia House, Helsinki, 15.6.2015

Distributed energy in Finland – why energy should be generated nearby?

Finland is called 'the land of the thousand lakes. The large areas of forest cover almost two thirds of the land mass.

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Check: http://www.visitfinland.com

What are the Finns like?

Finnish joke: “When talking with you; an introverted Finn looks at his shoes, and an extroverted Finn looks at your shoes”.

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Finns & energy

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Finland has high share of renewables

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Available: http://ekaweb02.eurekalert.org/pub_releases/2015-06/luot-fre060715.php

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Source: Child & Breyer. 07.06.2015. VISION AND INITIAL FEASIBILITY ANALYSIS OF A RECARBONISED FINNISH ENERGY SYSTEM. Available: http://www.lut.fi/documents/10633/70751/LUT-Vision-and-initial-feasibility-of-a-recarbonised-Finnish-energy-system-for-2050.pdf

Renewable energy is mostly bioenergy

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Source: Official Statistics of Finland (OSF): Energy supply and consumption [e-publication]. ISSN=1799-7976. 4th Quarter 2014, Appendix figure 7. Share of total energy consumption 2013–2014* . Helsinki: Statistics Finland [referred: 12.6.2015]. Access method: http://www.stat.fi/til/ehk/2014/04/ehk_2014_04_2015-03-23_kuv_007_en.html

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New renewable energy technology adaption is low

Geothermal, solar, and wind energy as newcomers

How much of the renewable energy is produced onsite or nearby in Finland???

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Challenges

● “Big is beautiful” culture ● New solutions and

technologies -> uncomfort zone and fear of feilure

● Carbon price is not seen as risk

● Cheap energy ● Lack of political interest and

economical incentives for citizens’ energy investments

Comparison of solar PV support policies between Finland, UK, Belgium and South Korea

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Support policy small scale

Support policy large scale

Installed capacity

Market growth

Finland Exemption from grid fees and taxes for self consumption

Investment aid 30%, exemption from grid fees and taxes up to 100 kVA or 800 MWh

Approx. 6 MW (2014)

slow

UK Feed-in-Tariffs Renewables Obligation

4979 MW (2014)

fast

Belgium Net-metering Capital subsidies, income tax credits

3008 MW (2013)

fast

South Korea

Home Subsidy Program

Renewable Portfolio Standard

1555 MW (2013)

average

Finland vs.

Germany

Opportunities • Energy efficiency and renewable energy can improve

trade balance • Finland’s energy imports cost annually 8,5 billion euros

(approx. 4 % from GDP), mostly fossil fuels from Russia • transition to renewable energy can create 50 000

new jobs by 2030 • economical crisis and 280 000 unemployed people

• New source of income and jobs for local communities, especially in rural areas

• Cleantech export potential

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Renewable energy benefits local economy

● 320 000 houses are heated with oil or electricity. If they would change to ground heat pumps, that would create employment equivalent of 1 500 work years and it would improve Finnish trade balance by 260 million euros.

● Kuopio Energy case: If coal would be replaced by bio, the city and regional companies involved in bioenergy value chain would benefit 6,2 million euros more in yearly basis. Bio would create 3 times more jobs than coal.

”Do it yourself” energy fosters user innovation and new business creation

Prosumers participate in the creation of products in an active and ongoing way

- Creativity meets consumption

- Peer collaboration - Co-creation of product

ideas and improvements

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The rise of inventive energy users

Research made on Finnish heat pump and pellet heating discussion forums www.lampopumput.info, www.maalampofoorumi.fi and www.pellettikeskustelu.fi : • 330 000 posts

• some of the messages were read 80-100 million times • Technology inventions or modifications made by

users: • 113 related to heat pumps • 87 related to pellet heating systems

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Source: Hyysalo, S. , Juntunen, J. & Freeman, S (2013). Internet Forums and the Rise of the Inventive Energy User. Science & Technology Studies, 26 (1), 25-51.

Energy policy perspectives

New government programme: + increasing heating oil taxes + phasing out coal in 2020´s - R&D cuts - Cutting wind power feed-

in-tariff ? Investment subsidies

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Citizens in the energy market – threat or positive opportunity for Finland?

Thank you! Contact information: Karoliina Auvinen, karoliina.auvinen@aalto.fi +358 50 462 4727 Aalto University, Helsinki FinSolar Project www.finsolar.net

References • Gaia Consulting. 2014. Saatavissa:

https://www.tem.fi/files/41148/Sahkon_pientuotannon_kilpailukyky_-_loppuraportti_-_final_%28ID_15372%29.pdf

• Gaia Consulting. 2014. Energiainvestointien alue- ja kansantaloudellinen kannattavuustarkastelu. http://www.sitra.fi/julkaisut/Selvityksi%C3%A4-sarja/Selvityksia73_2p.pdf (English summary available)

• Kauppalehti. Talletuskorot [verkkojulkaisu]. Säästötilit [viitattu: 23.1.2015]. Saatavissa: http://www.kauppalehti.fi/5/i/porssi/korot/index.jsp?selected=talletuskorot

• Kaleva Hanna. 2014. The Finnish Property Market 2014. KTI Kiinteistötieto Oy. Saatavissa: http://www.kti.fi/kti/doc/fpm/KTI_FPM14_net.pdf

• Sulpu ry. 2014. Lämpöpumppujen merkitys ja tulevaisuus. Saatavissa: http://www.sulpu.fi/documents/184029/209175/Lampopumppujen-merkitys-ja-tulevaisuus-SULPU.pdf

• Tilasto: Energian hinnat [verkkojulkaisu]. ISSN=1799-7984. 3. Vuosineljännes 2014. Helsinki: Tilastokeskus [viitattu: 23.1.2015]. Saatavissa: http://www.stat.fi/til/ehi/2014/03/ehi_2014_03_2014-12-17_tie_001_fi.html

• Korea Energy Management Corporation, Annual report IEA-PVPS-2013-Korea • Halme, Hukkinen, Korppi-Tommola, Linnanen, Liski, Lovio, Lund, Luukkanen, Nokso-

Koivisto, Partanen, Wilenius. 2014. New energy policy for providing growth and employment. https://jyx.jyu.fi/dspace/bitstream/handle/123456789/43432/New%20energy%20policy%20for%20providing%20growth%20and%20employment.pdf?sequence=1

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