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Finnish Climate and energy strategy and electricity markets Finnish Climate and energy strategy and electricity markets

Finnish Climate and energy strategy and electricity markets - PowerPoint Presentation

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Finnish Climate and energy strategy and electricity markets - PPT Presentation

1492016 Professor Sanna Syri Energy T echnology and Energy Economics Dept of Mechanical Engineering Aalto University Energy news in Finland Finland is preparing new ID: 648733

power heat electricity energy heat power energy electricity finland wind chp due news 2020 prices 000 project forest target

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Slide1

Finnish Climate and energy strategy and electricity markets

14.9.2016Professor Sanna Syri, Energy Technology and Energy Economics, Dept of Mechanical EngineeringAalto UniversitySlide2

Energy news in Finland

Finland is preparing new Climate and Energy strategy until 2030.Olkiluoto 3 NPP (1600 MW) is still

under

construction, estimated

production in

late 2018.Fennovoima

NPP

project

with Rosatom as partner. Next, building permit will be applied. The project has recently been in news due to lack of expertise and problems with safety culture http://yle.fi/uutiset/economic_affairs_minister_fennovoima_nuclear_project_safety_severely_lacking/9157634Finland’s target for wind power is 2500 MW by 2020. It will be reached soon. Role of solar pv has been neglible, but now there is more interest at household and offices scales.FiT also for wood chips (residual wood) in (large-scale) electricity and heat production (max 18 €/MWh), mostly used in combined heat and power production.Slide3

Energy news in Finland

Due to economic recession and strong increase of wind power in

the Nordic system

, also

Finnish electricity

prices

have

been record low (25-30 €/MWh) and futures show a further declining trend.Finland is also achieving the EU 2020 targets:National GHG emissions show a clear decreasing trend (not only policy, but also recession, warm winters and increased wind power)Kyoto target was stabilisation at 1990 level during 2008-2012 => OKNational target (transport, small-scale heating, agriculture etc) for 2020 is -16 % => probably OKRES in final energy consumption 38% by 2020 (3rd highest in EU) => is now OKSlide4

Energy news in Finland

During 2015, 900 MW condensing power (coal and gas) has

been

dismantled. Otherwise

ok to reduce

coal condensing

power

,

but wintertime electricity security is already compromised + lack of regulating power. Next in danger is Combined Heat and Power due to lack of profitability? CHP is extremely important for Finland, fuel use efficiency is about 90%.CHP, heat pumps and heat storages could have an important role to balance future energy systems with large VRES shares.Slide5

MW

HourSerious electricity import dependence

in Winter

Data

source: Fingrid

.

Wind

usability 10-16% of capacityRussian holidays ”saved us!”Slide6

Likely

elements of the new strategy The present Government

(PM from Central party)

favours wood

use

very much

Strong

emphasis on bioproducts industry and on advanced transportation biofuelsNot similar conrete elements yet for electric vehicles etc. Forest industry is investing in new large-scale pulp& paper millsChinese Kaidi Ltd. Plans a new tranport biofuels mill in Kemi, northern Finland. Concerns have been raised on the amount of Finnish state subsidies neededAlso public discussion on possibly to extensive use of forest resources (risk of reducing the forest carbon sink => becoming a net CO2 emission from

the

point

of

atmosphere

)

Present

guarantee

price

of

wind

power

(83,5 €/MWh)

has

become

unexpectedly

expensive

for

state

budget

due

to

the

low

spot

prices

=> Next RES

support

might

be

smaller

and

based

on

auctions

?Slide7

30 000

inhabitants, near Helsinki regionBiofuel CHP plant (140 MWe) + heat-only boilers

Heat storage

20 000 m3

Heat

pump 20 MW

Solar

heat area 20 000 m2Simulations with strongly varying electricity prices:Example of our current research: scenarios for district heating in Järvenpää: how to adapt to future variable electricity pricesSlide8

One

year: CHP, heat pumps and active use of heat storage are all needed

Slide9

Thank you

for your attention!January in Oulu, Northern

FinlandPeat & REF CHP

plant