Finland's energy system

Finland aims at a share of 38% renewable energy in 2020. They will try to bend the curve on energy consumption, so that in 2020 it is approximately the same as in 2008. With their use of biomass for power and heat production, and their utilisation of peat and nuclear power, only half of Finland’s energy production comes from fossil fuels.

Finland has a variety of energy sources, and cover about one third of their energy demand with renewable energy. One difference from other Nordic countries is the use of peat for energy. Finland classifies peat as a slowly renewable fuel. That is, if extracted at a slow enough rate, enough new peat will be produced in nature to provide a steady supply of it. About six percent of Finland's energy is produced from burning peat. Wood, peat and hydropower, combined with some wind, ground heat and solar, covers about 30% of Finland's energy demand. 19% is covered with nuclear power, and the rest comes from fossil fuels.

Traditionally there has been significant integration between the energy supply and energy consuming industries such as pulp and paper, forestry, metals and chemicals industries – which together account for 50% of demand. At the same time, paper, pulp, and forestry is a leading supplier of energy.

Thanks to its strong history in machine industry, Finland has established itself as a sub-supplier of wind energy technology, exporting generators, gearboxes, bearings and drives. Wind energy could also be part of the solution to broaden Finland's own renewable energy production. Although wind resources in Finland are not as large as on the west coasts of Norway, Denmark and Sweden, they are enough to support an expansion of wind capacity from the 276 GWh they produced in 2009.

Share of total primary energy supply, 2008. SOURCE: OECD/IEA 2010

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