WSHPDR_2013_Final_Report-updated_version

4.2.3 Finland
European Small Hydropower Association, Stream Map
Key facts
Population 5,262,930
Area 338,145 km 2
Climate Cold temperate; potentially subarctic but
comparatively mild because of
moderating influence of the North
Atlantic Current, Baltic Sea, and more
than 60 000 lakes. 1 The snow cover is
usually thickest in mid March, in Lapland
often as late as early April. 2
Topography Mostly low, flat to rolling plains
interspersed with lakes and low hills 1
Rain
pattern
In 2011, annual rainfall was 500–800 mm
depending on the region 3
Electricity sector overview
The domestic electricity production in Finland was
77,200 GWh in 2010, the imported electricity from its
neighbours was 10,500 GWh (almost 12 per cent). Its
electricity mix is dominated by combined heat and
power and nuclear power (figure 1). Finland exceeded
its 2020 renewable energy target of 28 per cent in
MW (generating 1,314 GWh per year) (figure 2). In
addition to these plants, there are approximately 40-50
plants with a capacity of less than 50 kW (micro-hydro),
operated without connection to the national grid.
SHP installed capacity
SHP potential
302 MW
305 MW
0 100 200 300 400
Figure 2 Small hydropower capacities in Finland
By 2020, the aim is to have 160 plants with a total
installed capacity of 305 MW (generating 1,330 GWh).
However, the small hydropower sector has lately been
facing a difficult growth environment, where the
economic support has been withdrawn. Considering this
change in support, the estimate of extra small
hydropower potential has recently decreased by up to
90 per cent, from 1,200 GWh in 2005 to around 210
GWh in 2010.
Refurbishment plans are being made mainly to upgrade
larger plants of the sector in the range of 1 MW to 10
MW. This work was supported by the decision made in
2010 to raise the upper limit for the energy investment
support from 1 MW to 10 MW.
32.05%
Wind Pow er 0.34%
Net Import
11.97%
Hydropow er
14.48%
Condensing Pow er
16.19%
Nuclear Pow er
24.97%
Combined Heat and Pow er
2009. 4
0% 5% 10% 15% 20% 25% 30% 35%
Figure 1 Electricity generation in Finland
Source: Statistics Finland 5
Note: Condensing power includes condensing power
plants, shares of condensing electricity of combined
heat and power production plants, and peak gas
turbines and similar separate electricity production
plants.
The deregulation of the electricity market has taken
place in stages. The reform and deregulation of the
Finnish electricity market started in 1995 with the entry
into force of the new Electricity Market Act (386/1995).
In late 1998, small-scale consumers were freed from the
requirement to use hourly-metering equipment. Since
then, all electricity users are free to acquire their
electricity from the supplier of their choice. 6
Small hydropower sector overview and potential
In 2010, Finland had 152 small hydropower plants
divided into 73 plants with 1-10 MW and 79 plants with
less than 1 MW. The total installed capacity was 302
Renewable energy policy
A new subsidy scheme, feed-in tariff (FIT) was
established in Finland on 31 December 2010 to promote
the production of electricity based on wind power,
biogas and wood-based fuel. Small hydropower as well
as small scale wind power and bio-electricity fall under
the fixed energy support part of the Act. In addition to
the fixed production support, an improvement of the
energy investment grant was foreseen. An Act on
production subsidy for electricity produced from
renewable energy sources entered partially into force
on 1 January 2011 and was ratified by the EU in the
second half of March 2011. The FIT support for large
wind power and bio-energy has been kept for the time
being, but the fixed production support for small hydro
(