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Solar thermal policy in Finland

General
The objective of the Finnish National Climate and Energy Strategy (2005) is that consumption of renewable energy should grow by at least one-fourth by the year 2015 and by at least 40% by 2025 such that renewable energy accounts for almost one-third of primary energy by 2025. The use of forestry chips, energy crop-derived biomass, biogas and smallscale wood facilities should increase by approximately 65% by 2015 and by about 80% by 2025 as compared to 2003. In 2010, renewable electricity should account for 31.5% of total Finnish power consumption. Biofuels should account for 5.75% of road transport fuels in 2010.

Taxation of fossil fuels is in place as of 1990. The fuels have a tax which is based on the carbon content. In the beginning of 2008, levels of tax have been increased slightly. Fossil Fuels used for electricity generation are not taxed, but an electricity tax is imposed on the consumption of electricity. In CHP, fuels used for heat generation are calculated by the amount of heat produced. Tax rates differ for industry and for private consumers.

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Finland is 38% (in the year 2005 the share was 28.5%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.


Renewable energy projections according to the National Renewable Energy Action Plan for Finland
The National Renewable Energy Action Plan (NREAP) for Finland was submitted in July 2010. The target according to Annex I of Directive 2009/28/EC is 38% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from biomass (renewable heating and cooling) (6610 ktoe, 62% of all renewable energy). Second important contribution is expected from hydropower (14.4 TWh or 1239 ktoe, 12% of all renewable energy). The third largest contribution is from biomass (renewable electricity) (12.9 TWh or 1110 ktoe, 10% of all renewable energy). Wind power contributes with 2.5 GW (6.1 TWh). For solar photovoltaic the 2020 contribution is projected to be 10 MW. For solar thermal the 2020 contribution is projected to be 0 ktoe. The two most important biofuels are projected to contribute 430 ktoe (biodiesel) and 130 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 7.9 TWh (676 ktoe) and for biogas it is expected to be 0.3 TWh (23 ktoe). The consumption of renewable heat is expected to amount to 3940 ktoe for solid biomass and 60 ktoe for biogas.

Renewable Heating and Cooling: solar thermal energy

In Finland, although located in Northern Europe, the use of solar energy is still attractive, both for the use of photovoltaics and solar thermal energy. In general, solar thermal energy can be used for 6 or 7 months in a year, and it can cover 10% to 30% of annual heating demands of a single family house (2 to 3 MWth annual production). In the year 2002 a solar road map was released and the Finnish Solar Industries were established.

Subsidies are granted for energy investments and development projects and energy among which solar thermal energy. The Council of State’s new decision (625/2002, EUVL C37/2001/) sets a maximum percentage of 40% for solar energy investments.

Subsidies are in place for renewable energy heating systems in residential buildings to encourage investments to change from high shares of existing electric heating and oil heating to district heating, wood pellets, heat pumps or other forms of renewable energy For this scheme 4 to 5 million euro is available.

Projects involving innovative technology have the priority when energy support is granted. Investment grants are targeted towards companies and communities, not for private persons or state organisations. In 2006, in total € 34.1 million was available for energy supports and approximately 70% was granted to renewable energy investments. The figure includes € 3.8 million in grants from the European Regional Development Fund. The share dedicated to solar thermal energy is not available, but it will be small.

The Finnish Funding Agency for Technology and Innovation (Tekes) is the main public financer of technology R&D. Renewable energy technologies are in the strategic focus of Tekes. The total funding for renewable energy and climate change technology has been €60–70 million annually. The share dedicated to solar thermal energy is not available, but it will be small. Various national technology programmes and projects have involved RES technologies, however the main focus being on bioenergy.


Future programme changes expected
In order to stimulate a shift to renewable energy usage, the current support and steering systems will be intensified and structures changed. As a new method for promoting renewable energy, a cost-effective feed-in tariff system, operating on market terms as far as possible, will be introduced.

Sources
Jussi Heinimö: IEA Bioenergy Task 40 “Sustainable International Bioenergy Trade: Se-curing
supply and demand” Country report of Finland 2008, Lappeenranta University of Tech-nology, Department of Energy and Environmental Technology, Research Report EN-A 57, ISBN 978-952-214-613-7, August 2008

Ministry of Employment and the Economy, www.tem.fi (sourced August 2008)

Finnish Funding Agency for Technology and Innovation, www.tekes.fi (sourced August 2008)

Motiva Oy, www.motiva.fi (sourced August 2008)

Finland: Long-term Climate and Energy Strategy; Government Report to Parliament 6 November 2008: http://www.tem.fi/files/20587/Climate_Change_and_Energy_Strategy_2008_summary.pdf

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

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Last update: June 2011



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