Finland Renewable Energy Market | Size, Share, Trends and Forecast to 2028

Finland Renewable Energy Market | Size, Share, Trends and Forecast to 2028

The global energy landscape is going through a major shift towards renewable based energy generation. This energy transition was possible after a decade of rapid technological advancement and a favorable regulatory environment. Additionally, factors such as decreasing costs of renewable energy sources and increasing competitiveness of battery energy storage technologies are expected to contribute to accelerated renewables deployment in the coming years. Furthermore, as the concern for climate change and support for environmental, sustainability and governance (ESG) considerations grow, the demand for clean and green power is expected to increase from almost all end-users.

The renewable energy market consists of the establishments primarily engaged in operating renewable electric power generation facilities. The power generation can be from a variety of sources, including solar energy, wind energy, small hydro, bioenergy, geothermal and marine. The electric energy produced in these establishments is provided to electric power transmission systems or to electric power distribution systems.

Finland Renewable Energy Market Scenario

Finland is a world pioneer in the use of renewable energy sources, particularly bioenergy. The primary goal of supporting renewable energy is to reduce greenhouse gas emissions and transition away from a fossil fuel-based energy system. Renewable energy sources presently account for about 40% of total energy consumption in Finland, and the National Energy and Climate Strategy to 2030 aims to expand this to more than 50% by the end of 2020s.

Solar: Annual irradiation levels in Finland are comparable to those in Germany. However, the main technological issues in Finland are connected to the intermittent availability of solar energy. Despite the constraints, the deployment of solar energy projects is increasing in the country at a rapid pace. The installed capacity of Solar Photovoltaics in Finland was 404 MW by the end of 2021 an increase of 27% relative to 2020.

(For more insights and analysis, consider our report on Finland Solar Power Market)

Hydropower: It is a major electricity generation source in the country after nuclear power. Hydropower contributed 22.1% to the country's energy mix in 2021.

Bioenergy: Finland's bioenergy usage is dominated by energy obtained from wood sources. The majority of wood fuels are byproducts of the forest industry, such as black liquor from the pulping process and bark, sawdust, and other industrial wood leftovers. Energy is also generated from logging residues and other low-value biomass from harvesting activities.

Finland Wind Power

Wind power construction in Finland began later than in many other European countries. In Finland, wind power development gained traction from 2012 to 2013, with national construction and production numbers breaking year after year. The installed capacity of wind energy was 3257 MW for the year 2021 an increase of 25.9% compared to the year 2020.

The total annual wind power generation in Finland was 8,061 GW or 11.7% of total energy production. Wind power currently accounts for 9.3 percent of Finland's electricity consumption, with that figure predicted to rise to 25 percent by 2025 at the latest.

The largest wind turbines in Finland are currently rated at 5 MW. Individual wind turbine generator sizes will grow in the future, particularly in offshore parks where turbine sizes could exceed 7 MW.

Finland has the potential to significantly enhance wind power capacity. The wind power industry's goal is to attain at least 30 TWh of annual wind power generation in Finland by 2030, which amounts to roughly 30% of Finland's energy consumption at that time.

(For more insights and analysis, consider our report on Finland Wind Power Market)

Bioenergy in Finland

Finland has a significant domestic potential for solid biomass due to its low population density and high forest acreage per capita. The majority of its bioenergy (90 percent) is derived from solid biomass.

In Finland, the primary application of bioenergy is in renewable heat, including direct heating (mostly in the industry) and district heating. Solid biomass utilization in the industry is steadily increasing, while the use of fossil fuels is decreasing.

In 2014, Finland published its first Finnish Bioeconomy Strategy. The Bioeconomy Strategy promotes bioenergy by encouraging forest industries to harness more sustainably available forest biomass and by fostering cleantech and circular economy ideas.

The Bioeconomy Strategy intends to minimize Finland's reliance on fossil natural resources, avoid biodiversity loss, and generate new economic growth and jobs in accordance with sustainable development principles. The strategy's goal is to boost Finland's bioeconomy production to EUR 100 billion by 2025 and create 100,000 new employment opportunities.

Finland Renewable Energy Policy

The usage of renewable energy is impacted by Finland's own energy and climate policies, as well as the duties and policy decisions imposed by European Union climate and energy legislation, which commits the European Union to reach climate neutrality by 2050. These are legally binding for Finland and have an impact on market opportunities.

The government of Finland has set an ambitious goal of becoming carbon-neutral by 2035 and carbon-negative soon after. The Climate Change Act, which went into effect on June 1, 2015, is the cornerstone of Finland's national climate policy. The Act also includes provisions for a climate policy planning mechanism and for evaluating progress toward climate goals.

According to the Government Programme, the Ministry of Economic Affairs and Employment coordinated the development and publication of 13 sector-specific low-carbon roadmaps in 2021. The roadmap work will be used in the development of the government's climate and energy policies, the targeting of RDI (Research Development and Innovation) investments, and the planning of a sustainable recovery. In relation to bioenergy, roadmaps for the energy industry, forest industry, and bioenergy industry have been prepared.

The Integrated Energy and Climate Plan (2019) of Finland details on, how the country aims to address the EU's climate and energy ambitions for 2030, including climate and renewable energy targets. Accordingly, the European Commission has set Finland a national target of a 39% reduction in greenhouse gas (GHG) emissions in the non-emissions trading sector by 2030 compared to 2005. Land-use emissions should be kept lower than the calculated reduction in emissions from sinks. Finland aspires to increase the share of renewable energy to at least 51% of total energy usage and 30% of total energy use in road transport by 2030.

Recent Developments

In June 2022, the Finnish government announced its plans to establish a national hydrogen network in an effort to meet climate targets and phase out Russian fossil fuels.

The Finish unit of Germany-based VSB Group has got approval to construct its 170 MW Karahka wind farm near Oulainen (Northern Ostrobothnia region). The project is expected to be completed by the end of 2024.

In May 2022, Danish renewable energy company Better Energy announced that it had formed a partnership with Finnish solar developer Forus with the aim of building more than 1 GW of solar power in Finland.

The Government passed a decree on December 16, 2021, allowing support for energy projects under Finland's Recovery and Resilience Plan from 2022-2026. The goal is to encourage energy investment and energy infrastructure projects in Finland that reduce greenhouse gas emissions and contribute to the country's 2035 carbon neutrality goals.

What do we cover in the Report?

Blackridge Research's Finland Renewable Energy Market report contains the installed capacity of renewable power generation sources (year-on-year) until 2028, the list of ongoing and upcoming renewable power generation projects such as solar photovoltaic farms, concentrated solar power projects, onshore wind, and offshore wind energy projects and the regulatory scenario within the renewable energy market of Finland.

Furthermore, the report will contain the drivers and restraints within the Finland Renewable Energy Market along with a meticulous evaluation of their impact in the near-, medium-, or longer term. Factors affecting renewable energy deployment include market conditions (e.g., cost, diversity, proximity to demand or transmission, and resource availability), policy decisions (e.g., tax credits, feed-in tariffs, and renewable portfolio standards), as well as country-specific regulations. Finally, the presentation would enable one to identify market opportunities and plan for long-term growth.

The impact of the COVID-19 pandemic is an integral part of the report.

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