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

Jaakko Jääskeläinen, Kaisa Huhta, Jenny Lehtomäki

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

3 Citations (Scopus)
189 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 languageEnglish
Title of host publication15th International Conference on the European Energy Market, EEM 2018
Number of pages5
Volume2018-June
ISBN (Electronic)9781538614884
DOIs
Publication statusPublished - 20 Sep 2018
MoE publication typeA4 Article in a conference publication
EventInternational Conference on the European Energy Market - Lodz, Poland
Duration: 27 Jun 201829 Jun 2018
Conference number: 15

Publication series

NameInternational Conference on the European Energy Market
PublisherIEEE
ISSN (Print)2165-4077
ISSN (Electronic)2165-4093

Conference

ConferenceInternational Conference on the European Energy Market
Abbreviated titleEEM
Country/TerritoryPoland
CityLodz
Period27/06/201829/06/2018

Keywords

  • CHP
  • Energy policy
  • Feasibility analysis
  • Generation adequacy
  • Legal framework

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  • From Failand to Winland

    Syri, S., Hast, A., Jääskeläinen, J., Olkkonen, V., Zakeri, B. & Helin, K.

    01/04/201631/08/2019

    Project: Academy of Finland: Strategic research funding

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