World Energy Outlook 2015 Deputy Director General Petteri Kuuva WEC Finland, 23 Nov. 2015 Total energy consumption 1975–2014* Share of total energy consumption in 2014: Wood fuels 25% Oil 23% Nuclear energy 18% Coal 10% Natural gas 7% Net imports of power 5% Peat 4% Hydro and Wind 4% Others 4% Source: Statistics Finland, Energy supply and consumption Fossil fuels and renewables 1970–2014* In 2014, share of RES: 32% of TPES In 2013, share of RES 36.8% of final consumption Source: Statistics Finland, Energy supply and consumption Finnish energy and climate policy goals towards 2030 Renewable energy WEO 2015 • Power sector is leading the change • 50% of global new power generation investments in 2014 • By 2040, 50% RES-E in EU • By 2040, globally need to add generation capacity more than is installed today Market rules, policies and subsidies are needed Finland • Not only RES-E, but also RES in heating and transport • Share of district heating is high, which allows fuel switch from peat and coal to forest biomass • Advanced biofuels in transport sector • Share of RES 37% now, Government Programme goal 50% in 2030 • Biofuels goal 40 % and cut half of oil consumption by 2030 Variable renewable: Wind and Solar WEO 2015 • Cost reductions of wind and solar • Wind: new turbine designs and higher hub heights • PV Solar: lower prices of panels and installation Finland • Wind: Onshore wind cheaper (hub heights >140 m), but still NIMBY problem; subsidy scheme will be revised • PV Solar: • Micro systems almost economical if PV replaces power purchases (tax subsidy for <100 kW systems) • Investment aid of 30 % for larger systems • Capacity value minimal for peak load in winter Fossil fuel subsidies WEO 2015 • Prices below market prices • Aimed to help the poor, but work counter to many energy and economic objectives Finland • Fossil fuel subsidies ≠ environmentally harmful tax subsidies (OECD definition) • Tax subsidies in Finland, e.g. • Lower electricity tax for energy intensive industry and tax rebate to level international playing field • Lower tax for diesel compared to gasoline to level transportation costs • Finnish tax levels way above EU minimum Conclusions • WEO 2015: Flagship publication with extensive data-based information for policy makers and civil servants • Global trends for energy and climate • However trends have to be adapted to the local circumstances • Finland is committed to EU goals for GHG reductions, renewable energy and energy efficiency • Ambitious national goals for RES, biofuels for transport and reduction of the use of fossil fuels