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