Finland: A pioneer in energy efficiency and energy technology research

Finland, often called the land of a thousand lakes, is abundant in renewable energy resources like hydro power, wood and peat. Their long experience with energy efficiency and strong research environment are driving forces behind Finland’s growing sustainable energy sector.

WOOD. Finland is one of the world's leading users of renewable sources of energy, especially bioenergy.(Photo: Ministry of Agriculture and Forestry)

Energy system
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Finland's energy system is characterised by a decentralised and versatile grid with both large and small energy production plants and diverse energy sources. They are one of the industrialised countries to have come furthest in the utilisation of bioenergy, often in combined heat and power (CHP) production. In addition, the use of hydropower, wind, ground heat and solar energy allows them to produce around 30% of their energy from renewable sources. With their use of peat and nuclear power, only half of their energy comes from fossil fuels.

Institutional system
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In Finland, energy issues are largely placed under the Ministry of Employment and the Economy. The country has a strong international role in energy technology R&D, with well developed energy technology clusters around the country. Their programmes are often given as an example of successful public-private cooperation in R&D.

Policy initiatives
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In their Climate and Energy Strategy, Finland aims at increasing the national share of renewable energy to 38% in 2020, and to reduce overall energy consumption. To further cut emissions from the energy sector, they will also expand their use of nuclear power. The Government especially encourages energy efficiency, and was very early in supporting energy audits financially. Producers are guaranteed a minimum price for electricity from wind, biomass and biogas through feed in tariffs, and all renewable electricity can be certified and sold with green certificates.

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