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Energy Year 2007 - ELECTRICITY

Finnish Energy Industries
Press release  For publication 22 January 2008 10 a.m.

Mild year 2007 cut growth of electricity consumption

- nevertheless output record in February during spell of hard frosts
- Nordic countries rainy, electricity imports grew
- Electricity import from Russia fell
– Carbon dioxide emissions from electricity generation down by 12 percent
– Combined heat and power generation (CHP) and coal condensing fell

Electricity consumption:

- 90.3 TWh, growth 0.3 percent
- demand for power by industry unchanged, reduction in heating electricity
- other electricity usage up by just under one percent

The energy year 2007 was characterised by unusually mild and rainy weather.  The need for heating was reduced last year. The rains increased production of hydropower both in Finland and in our western neighbouring countries. Record production in nuclear power. Electricity imports from Sweden and Norway grew, Estonia became a new electricity import country. Conversely, electricity imports from Russia declined significantly. The emissions from power generation were reduced.

Last year, Finland consumed electricity to the tune of 90.3 billion kilowatt hours (TWh), with growth on the previous year of 0.3 percent. Adjusted for temperature and calendar, however, electricity consumption was up by one percent, as shown by the Energy Year 2007 information from Finnish Energy Industries.

Industrial electricity consumption remained roughly unchanged last year. Power required for electric heating amounted to under one percent less than the year before.   The other user groups, on the other hand, increased their electricity consumption. Most growth took place in the service sector.

Last year was clearly rainier than 2006 in the Nordic countries. The water reserves of the Nordic countries stood well above the long-term average for the best part of the year. In Finland, hydropower generation grew by almost a quarter in 2007. Thanks to the increased hydropower and electricity imports from the west, coal condensing production fell by almost a fifth on the previous year.

Electricity consumption: more than half in industry, a quarter in households

Last year, industry and construction used 53 percent of the electricity, services and transport 18 percent, households and agriculture a good 15 percent, and electric heating 10 percent. Just over 3 percent of the electricity was lost during transmission and distribution last year.

Electricity required by industry and construction declined last year by 0.2 percent. Services and transport required 2.6 percent more electricity than the year before. Electricity consumption of households and agricultural clients grew by 0.4 percent.

The mild weather conditions reduced the power used for electric heating by 0.7 percent, despite about 10,000 new dwellings being connected to electric heating during the year. At the turn of the year, about 665,000 households, accommodating about 1.6 million Finns, were heated by electricity.

Last February was extremely cold throughout the country. On 8 February at 7-8 a.m., a new total electricity consumption peak power of 14,914 megawatts was measured. The previous record was 14,849 megawatts in January 2006. During the new record hour, Finland’s own electricity generation produced 12,078 megawatts, of which 4,647 was combined heat and power generation, 2,730 nuclear power, 1,974 hydropower, 2,724 condensing power, and three megawatts wind power. During the peak hour, the imported electricity output was 2,836 megawatts, with half of the peak hour import coming from Russia.

Electricity imports compensated for condensing generation

Last year, combined heat and power generation (CHP) covered 29 percent of electricity consumption, nuclear power 25 percent, hydropower 15 percent, and coal and other conventional condensing power 16 percent. The share of wind power was 0.2 percent. Net electricity imports rose by ten percent, now accounting for 14 percent of electricity consumption.

Due to plentiful rainfall, hydropower grew by almost 24 percent. Combined heat and power generation declined due to the mild winter by almost four percent. The nuclear power stations achieved an all-time record of 22.5 TWh, with nuclear power generation growth of a good two percent. Condensing generation fell by more than 17 percent, as cheaper electricity than that obtained by coal condensing was available from the neighbouring countries and other domestic power plants.

Net imports grew by a good ten percent. The greatest changes in power imports were the decline of Russian imports by more than eight percent, initiation of Estonian electricity imports, and the increased power imports from Sweden and Norway, thanks to the good year for water. 

The Estlink cable between Finland and Estonia, commissioned right at the end of 2006, increased the opportunities for power imports from Estonia. About two percent of last year’s electricity was generated in Estonia. Estonia is also able to buy electricity from Finland via Estlink.

Power imports from Russia declined by more than eight percent last year. The share of Russian electricity of the total annual power consumption in Finland fell to a good 11 percent. Two years ago, the share of Russian electricity peaked at over 13 percent.

A new record of 0.2 TWh was reached in wind power last year, with wind power covering 0.2 percent of electricity.

Carbon dioxide emissions down by 2.4 million tonnes

The power generated in Finland last year was cleaner than the year before. The emissions from power generation from coal, natural gas, peat and oil were 17.6 million tonnes of carbon dioxide, 2.4 million tonnes less than the previous year.

The prices of emission allowances in the EU internal Emission Trading Scheme were low last year. Towards the end of 2007, one tonne of carbon dioxide cost a few cents. This year, the prices of emission allowances have again risen to the high level of approx. EUR 24/carbon dioxide tonne. The EU Emission Trading Scheme was launched at the beginning of 2005.

The peat feed-in tariff system that came into force at the beginning of May improved the competitiveness of peat against coal. Usage of coal contracted significantly last year, and use of peat increased.

Additional information:

Juha Naukkarinen, Managing Director, Tel. 050-607 72
Pekka Tiusanen, Manager, Communications, Tel. 050-552 1347

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