Finland
With 34.3 % of the Finnish energy currently coming from renewables, Finland takes third place behind Sweden (51 %) and Latvia (35.8 %) according to the latest EU statistics. In 2012, energy from renewable sources was estimated to contribute 14.1 % of gross final energy consumption in the EU-28. The goal is to increase this to 20 % by 2020, but different countries have specific targets based on their starting point, renewable energy potential and economic performance. Sweden, Estonia, and Bulgaria have already reached their assigned targets, while Finland’s target is a 38 % share. The national energy strategy foresees biomass as providing most of the increase in renewables. The hydropower resource has the potential for only about 1 TWh per year more. This makes wind power the second largest source of new renewables in Finland, with a target of 6 TWh per year in 2020. Wind energy potential is located mostly in coastal areas. There is a huge technical potential offshore, with ample shallow sites available (Holttinen and Peltola 2011).
In Finland, wind energy deployment has been very slow, but setting the target of 6 TWh per year for 2020 (2500 MW) and a market-based feed-in tariff system starting in 2011 has led to a rush for the best sites.
According to Zervos and Kjaer (2008), Finland reached its target on the use of renewable energy sources for the generation of electricity in 2010 and continues to adjust and refine its energy policies in order to further enhance the competitive- ness of renewable energy sources. Through subsidies and energy tax exemptions, Finland encourages investment in renewable energy sources. Additional support in the form of fixed prices based on purchase obligations or green certificates is being considered for onshore wind power.
In order to increase the role of wind power in the generation of electricity in the country, the government has taken the following measures:
• Tax subsidies: The use of renewable energy sources for the generation of electricity has been made exempt from the energy tax paid by end users;
• Discretionary investment subsidies: New investments are eligible for subsidies up to 30 % (40 % for wind);
• Guaranteed access to the grid for all electricity users and electricity producing plants, including renewable energy source electricity generators (Electricity Market Act—386/1995): By 2025, Finland wants to register an increase in its use of renewable energy source for the generation of electricity.
The Finnish authorities submitted a NREAP (2010) to the EC. The document indicates that Finland expects to meet its 2020 target of 38 % renewable energy source for the generation of electricity. The power sector is forecast to meet 33 % of electricity consumption from renewable energy source. To achieve this, a target of 2,500 MW of wind capacity is set, producing 6.1 TWh or 6 % of total electricity consumption. At the end of 2013, wind power capacity in Finland was 447 MW, with 209 wind turbines generating electricity with an increase of 56 % and 38.4 %, respectively, with respect to 2012. Wind power production in 2013 was about 771 GWh, which was 0.9 % of the Finnish electricity consumption. Wind power production in 2012 was about 494 GWh, which was 0.6 % of the Finnish electricity consumption. At the end of 2013, a total of 197 MW was installed (see Table 5.17). At the beginning of 2012, there were 3,300 MW of wind power projects in various phases of planning onshore and 3,000 MW of announced projects offshore.
The average capacity factor from total generation versus total capacity (for turbines operating whole year) is 26 %, a percentage that is very low yet.
From 2011 to 2015, installed onshore wind power capacity is expected to grow by about 100 MW a year net. In the five subsequent years, net annual increase in wind capacity is forecast to be between 300 and 400 MW. The Finland’s NREAP (2010) does not expect any offshore wind installations by 2020 although some 26 MW of near-shore shallow water offshore capacity is currently grid connected in the country.
The wind power target is consistent with EWEA’s overall 2020 scenario for Finland of 1,900–3,000 MW. The NREAP (2010), however, does not take the Finland’s offshore potential into account in contrast to EWEA’s scenario, which includes 400–1,000 MW of offshore wind capacity.
The target price for electricity production from wind power is €83.5 per MWh.
The FiT equals the target price, minus the electricity market price (FiT premium mechanism). If the market price is higher than the target price, no FiT is paid. However, until 2015, the target price is set to be higher, €105.30 per MWh, on the basis of which the FiT will be paid for a maximum of three years. The nomi- nal output capacity of wind power plants admitted to the FiT scheme should be at least 500 kVA. Wind turbines, which are not eligible for the FiT, will continue to receive a fixed subsidy of €6.90 per MWh (TEM 2010).
Generation of Electricity Using Wind Energy
The evolution of the generation of electricity using wind energy in Finland during the period 1997–2014 is shown in Fig. 5.29.
According to Fig. 5.29, the generation of electricity in the country using wind power during the period 1997–2014 increased 45.3-fold. There are plans for a total of 9,000 MW of wind power in Finland, out of which most is out at sea. On land, there is approximately 2,500 MW in the planning phase. Most of the wind power parks are in an early planning phase, and no decision has been made on whether or not they will be fulfilled. Most of the power plants will be placed at sea around the Gulf of Bothnia. The largest wind farm in planning is to be installed out at sea and will consist of 160 turbines. For this reason, it is expected that the generation of electricity using wind energy in Finland will continue increasing during the coming years.
The participation of wind power in the generation of electricity in Finland in comparison with other European countries is shown in Fig. 5.30.
Finally, it is important to highlight the following: Generating electricity using wind energy only has relatively minor environmental impacts—especially since it does not result in any emissions. Landscape impacts, land use, bird strikes, and localized noise problems are the most significant issues. The most serious considerations relate to the visual impacts of wind turbines on landscapes, since these tall structures are prominently visible over long distances. New wind turbines have to be located as sensitively as possible, to ensure they do not spoil areas of natural beauty. Suitable locations are possible to be found offshore or in areas where they can fit in well into existing cultural landscapes.