Finnish Energy Industries
Press Release  
For publication 20.1.2011 10 am
  

Energy Year 2010 - ELECTRICITY
 

Electricity consumption up by 7.6 per cent
– industrial electricity requirement + 10.6 per cent
- other consumption + 5 per cent
- Combined heat and power generation CHP at record level

Despite growth, industrial power consumption still short of record years 

The Finnish economy has recovered from a deep recession to a new upturn.  Power consumption grew last year by almost eight per cent, having fallen in the two previous years. Adjusted for temperature, power consumption grew last year by 5.6 per cent. The electricity required by industry grew last year by more than 10 per cent. However, the high growth percentages were partly due to the low starting level of 2009 and the cold weather conditions last year.

In industry, the change for the better was already discernible in late autumn of 2009. Nevertheless, figures in Finnish Energy Industries' Energy Year 2010 show that industrial power consumption is still more than 10 per cent below the record years of the 2000s.

The greatest changes in power supply last year were caused by the lengthy periods of hard frosts in the winter and at the end of the year and the continuing poor water situation affecting the Nordic countries from 2009, as well as the long outages of the Swedish nuclear power plants. As a result of the cold weather and drought, the separate production of electricity increased by 50.5 per cent last year. Combined heat and power generation (CHP) grew by 15 per cent, and an all-time record was reached in cogeneration. The carbon emissions from power generation grew by one-third.

In the last winter period, the electricity consumption peak rose to 14,588 megawatts on 28 January 2010 at 8-9 a.m. This was a little over 1,200 megawatts higher than the output peak of the previous winter period 2009. The highest recorded peak output of the current winter to date – 14,049 megawatts – was reached on 29 November 2010 at 5-6 p.m. This winter’s consumption peak may rise to about 15,000 megawatts, if the whole country is subjected to severe frosts in the next few weeks.

During the hard frosts of last winter, the Nordic power markets experienced high price spikes when power production capacity was relatively low and its availability problematic and the markets reacted slowly this situation. Juha Naukkarinen, Managing Director of Finnish Energy Industries, believes that the situation may become more difficult in future years, as the economy recovers and power consumption increases, until new investments are commissioned.

Due to economic recovery, power consumption up by 7.6 per cent

Last year, Finland consumed 87.5 billion kilowatt hours (terawatt hours, TWh) of electricity; the growth from 2009 was 6.2 TWh, or 7.6 per cent. In terms of volume, the growth is the greatest annual increase of all time. In percentages, last year saw the greatest changes since 1983. Adjusted for temperature, power consumption grew last year by 5.6 per cent.

Last year, net electricity imports accounted for 12.0 per cent of energy consumption and Finland’s own power generation 88 per cent. Combined heat and power generation (CHP) covered 32.6 per cent of electricity consumption, nuclear power 25 per cent, hydropower almost 15 per cent, and coal and other condensing power more than 15 per cent. The share of wind power was 0.3 per cent. CHP production (28.5 TWh) grew by 15 per cent due to the cold weather conditions and industrial recovery. Nuclear power production (21.9 TWh) fell by three per cent.

For hydropower, 2010 was a little better than the year before. The production of hydropower plants (12.8 TWh) was up by a good one per cent on the previous year. The requirement for condensing power (13.5 TWh), generated mostly by coal, increased by 50.5 per cent from the previous year. Wind power generation (0.3 TWh) grew by over six per cent along with new wind power plants.

Net imports of electricity down by 13 per cent

Net electricity imports (10.5 TWh) fell by 13 per cent. The imports from Russia remained very close to the record level of the year before. Electricity imports from Estonia increased. In its power trading with Sweden and Norway, Finland’s exports exceeded imports.

The water situation in the Nordic countries remained poor for the second year running. Finland, Norway and Sweden were significant net importers of electricity. Thanks to its coal and gas power, Denmark was a net exporter of electricity. The Nordic countries imported a great deal of electricity from Russia, Estonia, Poland, Germany and the Netherlands. At the start of 2011, reservoirs in the Nordic countries were about 42 per cent full of water, while the long-term average for this time of year is about 67 per cent. The shortfall corresponds to about 30 TWh of electricity. The Nordic countries consume about 400 TWh of electricity a year.

Industrial power consumption rising

The improved situation of the Finnish economy is clearly in evidence in the increased industrial power requirement, with growth last year at 10.6 per cent. The year before, it had declined by almost 16 per cent. The share of industry of Finland’s power consumption was 47 per cent last year. Industrial power consumption was 6.4 TWh lower than in the record year of 2007. The plant closures in the energy-intensive forest industry have reduced the industrial power requirement, and there is still a way to go to reach the power consumption levels of the time before the structural change in industry.

In the metals industry, power consumption grew by almost 17, in the forest industry 11, chemicals industry under six, and other industry seven per cent.

Last year, residential properties and agriculture used about 28 per cent of the total electricity, and services and construction about 22 per cent. About 3 per cent of the electricity was lost during transmission and distribution.

Carbon dioxide emissions from power generation 16.9 million tonnes

The emissions from power generation from coal, natural gas and peat were 16.9 million tonnes of carbon dioxide last year, one-third more than the previous year. The growth is due to increased separate and CHP power generation, because the increased demand and reduced electricity imports from the west had to be replaced by particularly coal and other fossil fuels. Nevertheless, electricity generated in Finland last year was still 59 per cent greenhouse gas emissions-free. The share of renewable energy sources was 31 per cent of all power production. The use of domestic wood and other bioenergy increased by one quarter last year.

Market electricity price on average 53 per cent higher than in 2009

On the Nord Pool Spot power exchange, electricity market prices were clearly higher last year than the year before. The average market electricity price in Finland last year was 5.7 c/kWh, 53 per cent higher than the average for 2009.
The increase in market prices was only partially passed on to consumer prices.

The price of electric energy for a domestic household customer (K 1) at the start of 2011 exclusive of tax was on average 7.11 c/kWh (1 January 2010: 6.40 c/kWh, increase 11.1%), and the price of transmission exclusive of tax  5.24 c/kWh (1  January 2010: 4.91 c/kWh, increase 6.7%). The total price exclusive of tax was thus 12.35 c/kWh at the start of 2011 (1 January 2010: 11.31 c/kWh, increase 9.2%).The total price inclusive of tax rose by more than 16 per cent.

For a householder with electric heating, the price inclusive of tax rose by about 20 per cent in a year. Mr. Naukkarinen has made the following statement: “In terms of energy taxation, Finland is now one of the countries imposing the highest taxes in Europe”. 

Additional information:
Juha Naukkarinen, Managing Director, Tel. +358 (0)50 607 72
Pekka Tiusanen, Manager, Communications, tel. +358 (0)50 552 1347

Open Energy Year 2010 - ELECTRICITY ppt slides

ELECTRICITY SUPPLY AND CONSUMPTION 2009–2010

Source: Finnish Energy Industry /Monthly statistics 2010

Attachment	Date	Size
energy_year_2010_electricity.ppt (ppt)	09.03.2011	293 KB