Energy use and supply

Energy imports still play a crucial roleFinland is very dependent on foreign energy resources, as the country lacks its own natural gas, oil and coal reserves. Approximately 70 percent of the energy consumed in Finland is imported. This fact has dictated and will continue to dictate Finland’s energy policies: energy must be sourced as diversely as possible.
 
Oil has retained its position in Finland as the most important fuel (pdf). Although its share has been decreasing for many years, oil still accounts for around a quarter of Finland’s energy consumption. Natural gas and coal each account for approximately 10 percent of total energy consumption. Nuclear power covers almost 20% of total energy consumption and 25% of electricity consumption.
 
Domestic energy sources account for approximately 30 percent of total energy consumption. The primary domestic energy sources are wood, waste liquors produced by the forest industry (wood based energy a total of 20%), peat (5%), and hydro power (3%). From total electricity consumption (pdf), hydro power accounts for 15%, biomass 12%, peat 6%, waste residues almost 1%, and wind power 0.4%.
 
Industry consumes around half of all Finnish energy Industry consumes approximately half of all Finland’s energy (pdf). Finnish industry is highly energy-based compared with other countries. Almost 80 percent of the energy used by industry is consumed by process industries, the biggest consumers being the pulp and paper industry, the metal refining industry and the basic chemical industry.
 
Electricity consumption has increased in the past years by an average of 2-4 percent a year. Electricity consumption is expected to continue at a somewhat slower rate (1-2 % a year) also in the future despite the fact that the recent financial crisis temporarily reduced industrial electricity consumption. Last year (2010), industrial energy consumption recovered rapidly, +11 % compared to the consumption level in 2009.

In the future, the reason for the slower rate of increasing the demand is mainly the excellent and continuously improving level of energy efficiency. Energy efficiency has been systematically improved, and Finland has over ten years’ experience of voluntary energy efficiency agreements between industry/companies and government.
 
Efficient production of electricity in FinlandThe efficiency of power production in Finland is high compared with other countries. This efficiency is based primarily on the large share of combined heat and power (CHP) production: approximately one third of electricity is produced in CHP plants, which can operate with efficiency rates of 80–90 % compared to less than 40% in separate power production. These CHP plants are used broadly by industry and for district heating, nowadays also for district cooling.