From 2011 to 2021, Finland experienced a significant shift in its
energy mix. The share of
fossil fuels in Total Energy Supply (TES) declined from 53% to 36%, with decreases seen across all types: oil (26% to 21%), natural gas (9.6% to 6.4%), and coal (11% to 6.3%). Peat's contribution to TES also decreased from 5.8% to 2.7%. These changes were driven by transitions to renewable energy sources, notably solid biomass, with bioenergy and waste increasing from 23% to 34% of TES. Wind energy grew from 0.1% to 2.3%, while nuclear energy remained stable at 18%, expected to rise with the new Olkiluoto 3 reactor's full operation. The
Finnish Association for Nature Conservation (FANC) demands Finland not to burn stumps and sturdy wood that are 15% of wood chips burned according to government energy policy.
Fossil fuels Petroleum Finland does not have any petroleum resources of its own, so it relies 100% on petroleum imports. In 2007 oil imports were almost 11 million tonnes in Finland. In 2006, Finnish oil imports came from Russia (64 percent),
Norway (11 percent),
Denmark (11 percent), and the rest from United Kingdom,
Kazakhstan, and
Algeria. Petroleum comprises 24 percent of the Finnish energy consumption. Most of the petroleum is used in vehicles, but about 260,000 homes are heated by heating oil.
Neste Oil is the sole
oil refiner in Finland, exporting petroleum products such as gasoline and
fuel oil to the
Baltic countries and North America. Oil imports were valued at 6.5 billion euros and exports 3 billion euros in 2006.
Coal Coal is imported from
Poland. 5.3 million tonnes were used in 2016. According to Finnwatch (27 September 2010) there are 13 coal power plants in Finland. The companies
Pohjolan Voima,
Fortum,
Helsingin Energia and
Rautaruukki consume coal most. The
ILO Agreement 176 (1995) addresses health and safety risks in mines. Finland ratified the agreement in 1997. However, as of 2017 the agreement was not ratified in the following countries that export coal to Finland: Canada, Australia,
Colombia,
Kazakhstan,
Indonesia and China. At least two companies in Finland reported (2010) using the UN Global Compact initiative criteria in their supplier relationships. No Finnish company reported signing the UN Global Compact Initiative.
Natural gas Finland has no production facilities or underground storage facilities for gas. Natural gas has been used in Finland since 1974 after the first
oil crisis.
Gasum is the Finnish importer and seller of natural gas, which owns and operates Finnish natural gas transmission system. Natural gas vehicles aren't popular in Finland, but natural gas powered busses exist. On 21 May 2022, the supply of gas from Russia to Finland was cut off because Gasum refused to pay for the gas deliveries in rubles as required by the Russian gas company Gazprom and Moscow. The import of gas to Finland was then switched over to come through the
Balticconnector pipeline. The LNG terminal ship
Exemplar was also leased for 10 years to cover Finland's gas needs in the event of any shortages. The ship's annual gas capacity is 35 terawatt-hours (TWh).
Peat Peat and hard coal are the most harmful energy sources for
global warming in Finland. According to
VTT studies, peat is often the most harmful one. Peat was the most popular energy source in Finland for new energy investments 2005–2015. The new energy plants in Finland starting 2005–2015 have as energy source: peat 36% and hard coal 11%: combined: 47%. The major
carbon dioxide emitting peat plants during 2005–15 were expected to be ( kt):
PVO 2700 kt,
Jyväskylän Energia 561 kt, Etelä-Pohjanmaan Voima Oy (EPV Energia) 374 kt, Kuopion Energia 186 kt,
UPM Kymmene 135 kt and
Vapo 69 kt. EPV Energy is partner in
TVO nuclear plants and Jyväskylän and Kuopion Energia partners in
Fennovoima nuclear plants in Finland. According to
IEA country report the Finnish subsidies for peat undermine the goal to reduce CO2 emissions and counteracts other environmental policies and
The European Union emissions trading scheme. IEA recommends to adhere to the timetable to phase out the peat subsidies in 2010. "To encourage sustained production of peat in the face of negative incentives from the European Union's
emissions trading scheme for greenhouse gases, Finland has put in place a premium tariff scheme to subsidise peat. The premium tariff is designed to directly counter the effect of the European Union's emissions trading scheme". Finland plans to reduce peat energy production, which generates 2.6% of Finland's electricity, it will be reduced by 50% by 2030.
Wind energy The first offshore wind farm came on line in 2017.
Geothermal In
Espoo,
St1 and
Fortum are testing a
geothermal plant. In 2018, water was pumped in the
bedrock under
Otaniemi through a bore over 6 km deep made with a
down-the-hole drill to reach the warmer
earth crust, in a process which was allowed to produce micro-hearthquakes up to magnitude 1.9. Once an appropriate position is found to drill an exit bore towards which the water would flow underground, the plant could produce 40 MW of thermal power. In 2000–2014, the four units produced 21.4–22.7 TWh electricity per year, 27–35% of energy production and 24–28% of energy consumption in Finland. They are among the world's most efficient, with average capacity factors of 94% in the 1990s. Work began on an additional reactor in 2005 at
Olkiluoto Nuclear Power Plant. The reactor, constructed by
Areva, is a
European Pressurized Reactor (EPR) with a power output of 1,600 MWe, originally scheduled to start production in 2009. At a total cost of over €8.5 billion, regular electricity production started in April 2023. Another nuclear power station is under development by the
Fennovoima consortium. The Russian nuclear engineering company
Rosatom owns 34% of the project. Various Finnish corporations and local governments are also major owners. The share of electricity produced by nuclear power could double by 2025, reaching around 60%.
Hydropower Finland has more than 330 hydro power plants, with total capacity of over 3,100 megawatts in 2022. Hydro accounted for 18% of Finland's total installed power generation capacity and 22% of total power generation in 2021.
Green Hydrogen In 2023 it was planned to create three
green hydrogen plants in Finland producing 850 tons of green hydrogen daily, 2.2GW per annum. == Environmental effects ==