Finland is committed to aim for a carbon-neutral energy system by 2023. The transition is in
progress with increasing shares of various forms of low-carbon production and significant
reductions in the share of energy production from coal and natural gas, for example. Finland
has traditionally been strong in the use of renewable energy thanks to wood-based fuels
availability. However, a significant part of the energy is still produced from fossil fuels in
The energy system has been in constant evolution throughout history. Recently, climate change
mitigation has made carbon neutrality the single biggest goal in energy system development,
which has a major impact on current decision-making. In addition to carbon neutrality, the
change must consider two other particularly important and ongoing societal objectives such as
security of supply and service of the energy system, and cost-effectiveness.
The future energy system will be affected by many expectations and parallel developments.
These include the arrival of new energy sources on the market and their integration into the
system, the progress of electrification, the development of energy technologies and changes in
cost-efficiency, the growing importance of energy storage, the carbon capture development,
and plans for the hydrogen economy. There are numerous possible directions for development,
and they are not mutually exclusive. However, it creates science-based, urgent information
needs and challenges for energy system decision-making. As decisions have to be taken that
simultaneously create the conditions for the achievement of several objectives, partly crossimpacting
This report offers a clear and comprehensive overview of energy system status in Finland
including the main trends. The report provides basic general information of the different types
of energy production, energy storage, energy efficiency and savings as well as the entire energy
system, including system integration. In addition, the aim is to present basic information of the
different types of energy production, the current state of the energy system and future trends.
The report is intended for all those who are interested in the trends in the energy system and
aims to present relatively complex entities in an understandable way and to provide an
overview of the factors involved in the development of the energy system. The report has been
written by 19 experts in their field from the Faculty of Energy Systems at LUT University.
The report starts with a summary of the views of public organisations on future trends and
scenarios for energy systems. The most relevant of these are the views and scenario calculations
of the Intergovernmental Panel on Climate Change (IPCC), the EU, the Nordic Council of
Ministers' organisation called Nordic Energy Research (NER) and the Finnish Climate and
Energy Strategy. The views contain the same basic elements related to energy systems and also
partly contain many different future scenarios. For example, the evaluation models reviewed
by the IPCC include more than 2 500 scenarios.
The report presents basic information on the technologies and characteristics of all the main
energy production methods in Finland, considering the sustainability of the production method
and the different needs of society. In addition, reports covers topics such as energy system
integration costs, hydrogen economy, carbon capture and utilisation, energy storage and
carriers, energy efficiency, energy savings and consumption flexibility. The intention is to
provide the reader as comprehensive a basic understanding as possible of the main technologies
of the energy system and the most important elements of its development.
Besides presenting the different forms of energy production and the main technologies, the
report also considers the energy system as a whole and the various priorities for the future. The
current state of the energy system is examined in particular for electricity and heat and also
briefly for industry and transport. The report also is discussed the significance and role of the
three main energy sources in the development of the national energy system. In Finland, the
main energy sources for the energy system development are variable renewable energy, nuclear
power and biomass. In addition, the report provides information on important elements of
system integration, such as sector integration, system infrastructure, the functioning of the
energy market and system-level investments, and export opportunities related to carbon
neutrality expertise in Finland.
The main issues of the energy system development are currently related to variable renewable
energy, especially wind power in Finland. It plays an important role in transforming energy
consumption in many sectors towards carbon neutrality and will grow significantly in the
coming years. As the wind dependent and variable production share increases, ensuring
operational reliability will require significant structural changes and system development to
maintain a balance between production and consumption under all conditions. The main tools
to achieve these purposes include energy storage in different time periods, weatherindependent
and controllable forms of energy production, power reserves, consumption
flexibility and integration between different sectors. This report aims to provide the basic
information needed to understand the whole picture and its various components.
Keywords: Finland, Carbon neutrality, Energy, Renewable energy, energy future