Energy Policies of IEA Countries Finland
Total Page:16
File Type:pdf, Size:1020Kb
Please note that this PDF is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at http://www.iea.org/ termsandconditionsuseandcopyright/ Energy Policies of IEA Countries Finland 2013 Review 2013 OECD/IEA, © Energy Policies of IEA Countries Finland Finland’s economy is highly industrialised. Yet with over one-third of its territory located above the Arctic Circle, the country is largely rural and sparsely populated, except for its southern tip. With its energy-intensive industries and its cold climate, Finland’s energy consumption per capita is the highest in the IEA. Finland is highly dependent on imported fossil fuels, and energy policy is at the heart of the government’s concerns. The government’s energy strategy aims to strengthen Finland’s energy security, to move progressively towards a decarbonised economy, and to deepen its integration in the wider European market. Finland has a very ambitious renewable energy programme, with a view to meeting 38% of its final energy consumption from renewable sources by 2020. Finland is the most forested country in Europe; biomass will thus play a central role in meeting the target. Finland is one of few IEA countries with plans to expand its nuclear capacity, and the Parliament has approved the construction of two more nuclear power plants. If all planned projects are completed, the share of electricity produced by nuclear could double by 2025, reaching around 60%. This would contribute to diversifying Finland’s energy security and meeting its low-carbon objectives. Also, Finland participates in the Baltic Energy Market Interconnection Plan (BEMIP), which aims to further regional integration through EU- supported infrastructure projects. This review analyses the energy policy challenges facing Finland, and provides sectoral studies and recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future. ISSN: 1990-0082 (61 2013 03 1P1) 978-92-64-19077-1 €75 2013 OECD/IEA, © Energy Policies of IEA Countries Finland 2013 Review 2013 OECD/IEA, © INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its primary mandate was – and is – two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 28 member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency’s aims include the following objectives: n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic © OECD/IEA, 2013 Spain International Energy Agency Sweden 9 rue de la Fédération Switzerland 75739 Paris Cedex 15, France Turkey www.iea.org United Kingdom Please note that this publication United States 2013 is subject to specific restrictions that limit its use and distribution. The European Commission The terms and conditions are available online at also participates in http://www.iea.org/termsandconditionsuseandcopyright/ the work of the IEA. OECD/IEA, © Table of contents TABLE OF CONTENTS 1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS ........................................................................ 9 Executive summary ...................................................................................................................... 9 Key recommendations ...............................................................................................................12 PART I POLICY ANALYSIS .....................................................................................................13 2. GENERAL ENERGY POLICY ...................................................................................................................15 Overview ....................................................................................................................................15 Supply and demand ...................................................................................................................16 Institutions .................................................................................................................................19 Key policies.................................................................................................................................21 Taxation ......................................................................................................................................24 Assessment ................................................................................................................................25 Recommendations .....................................................................................................................26 3. CLIMATE CHANGE ................................................................................................................................27 GHG emissions and targets ........................................................................................................27 CO2 emissions from fuel combustion .........................................................................................28 Institutions .................................................................................................................................31 Policies and measures ................................................................................................................31 Assessment ................................................................................................................................36 Recommendations .....................................................................................................................38 4. ENERGY EFFICIENCY.............................................................................................................................39 Overview ....................................................................................................................................39 Institutions .................................................................................................................................42 Policies and measures ................................................................................................................43 Assessment ................................................................................................................................52 Recommendations .....................................................................................................................54 2013 3 OECD/IEA, © Table of contents PART II SECTOR ANALYSIS ...................................................................................................55 5. OIL........................................................................................................................................................57 Supply, demand and imports .....................................................................................................57 Infrastructure .............................................................................................................................60 Retail market structure ..............................................................................................................61 Emergency response policy and reserves ..................................................................................61 Prices and taxes .........................................................................................................................63 Assessment ................................................................................................................................65 Recommendations .....................................................................................................................66 6. NATURAL GAS ......................................................................................................................................67 Supply and demand ...................................................................................................................67 Regulatory and legal framework ................................................................................................69