Ensuring generation adequacy in Finland with smart energy policy - How to save Finnish CHP production?

Jaakko Jääskeläinen; Kaisa Huhta; Jenny Lehtomäki

doi:10.1109/EEM.2018.8469211

Ensuring generation adequacy in Finland with smart energy policy - How to save Finnish CHP production?

Jaakko Jääskeläinen, Kaisa Huhta, Jenny Lehtomäki

Department of Mechanical Engineering

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Scientific › peer-review

4 Citations (Scopus)

233 Downloads (Pure)

Abstract

The Finnish electricity market is experiencing a period of prolonged low electricity wholesale prices. Concurrently, there is a growing concern regarding generation adequacy particularly during peak demand periods. Combined heat and power (CHP) accounts for a large share of Finnish energy production and it is expected to continue doing so under the new energy and climate strategy. However, the current and predicted future electricity wholesale prices encourage replacing retiring CHP capacity with heat only boilers (HOBs), which practically excludes the possibility of electricity production at the site for decades to come. This article analyses the economics of biomass-based heat and CHP production, and the required electricity price level to ensure the economic competitiveness of CHP production in Finland. Moreover, this paper analyses the legal framework within which energy policy measures such as subsidisation can be implemented in order to ensure a functional energy system in the future.

Original language	English
Title of host publication	15th International Conference on the European Energy Market, EEM 2018
Publisher	IEEE
Number of pages	5
Volume	2018-June
ISBN (Electronic)	9781538614884
DOIs	https://doi.org/10.1109/EEM.2018.8469211
Publication status	Published - 20 Sept 2018
MoE publication type	A4 Article in a conference publication
Event	International Conference on the European Energy Market - Lodz, Poland Duration: 27 Jun 2018 → 29 Jun 2018 Conference number: 15

Publication series

Name	International Conference on the European Energy Market
Publisher	IEEE
ISSN (Print)	2165-4077
ISSN (Electronic)	2165-4093

Conference

Conference	International Conference on the European Energy Market
Abbreviated title	EEM
Country/Territory	Poland
City	Lodz
Period	27/06/2018 → 29/06/2018

Keywords

CHP
Energy policy
Feasibility analysis
Generation adequacy
Legal framework

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1109/EEM.2018.8469211

ENG_Jääskeläinen_Jaakko_et_al_Ensuring_generation_adequacy_in_Finland_International_Conference_on_the_European_Energy_MarketAccepted author manuscript, 239 KB

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Cite this

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abstract = "The Finnish electricity market is experiencing a period of prolonged low electricity wholesale prices. Concurrently, there is a growing concern regarding generation adequacy particularly during peak demand periods. Combined heat and power (CHP) accounts for a large share of Finnish energy production and it is expected to continue doing so under the new energy and climate strategy. However, the current and predicted future electricity wholesale prices encourage replacing retiring CHP capacity with heat only boilers (HOBs), which practically excludes the possibility of electricity production at the site for decades to come. This article analyses the economics of biomass-based heat and CHP production, and the required electricity price level to ensure the economic competitiveness of CHP production in Finland. Moreover, this paper analyses the legal framework within which energy policy measures such as subsidisation can be implemented in order to ensure a functional energy system in the future.",

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Jääskeläinen, J, Huhta, K & Lehtomäki, J 2018, Ensuring generation adequacy in Finland with smart energy policy - How to save Finnish CHP production? in 15th International Conference on the European Energy Market, EEM 2018. vol. 2018-June, 8469211, International Conference on the European Energy Market, IEEE, International Conference on the European Energy Market, Lodz, Poland, 27/06/2018. https://doi.org/10.1109/EEM.2018.8469211

Ensuring generation adequacy in Finland with smart energy policy - How to save Finnish CHP production? / Jääskeläinen, Jaakko; Huhta, Kaisa; Lehtomäki, Jenny.
15th International Conference on the European Energy Market, EEM 2018. Vol. 2018-June IEEE, 2018. 8469211 (International Conference on the European Energy Market).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Scientific › peer-review