Energy Policies of IEA Countries: Finland 2003

International Energy Agency

The International Energy Agency's 2003 comprehensive review of the energy policies and programmes of Finland.  This edition finds that the most important development in the Finnish energy sector in recent years has been the construction of a new nuclear power plant. Scheduled to come on line in 2009 with a capacity between 1.0 and 1.6 GWe, the plant is expected to provide needed generating capacity with zero greenhouse gas emissions. The report suggests that the Finnish government should monitor the plant’s progress and stand ready to act should delay or other obstacles arise.

Finland uses international trade and other tools to lower energy costs and increase energy security. Greater international co-operation through Nordpool, in international transmission lines and plans for backup power, and efforts to diversify natural gas supply options would reinforce this policy.

While Finland’s light-handed approach to regulation has worked well, the report recommends areas of more proactive regulation, especially in the fields of electricity networks and district heating systems.

Finland has agreed to keep GHG emissions at 1990 levels during the first Kyoto commitment period, yet projections show a 15% increase in emissions under business-as-usual conditions. Actively integrating international measures such as emissions trading into domestic programmes and more market-based approaches to renewable energy will ease the path towards Kyoto compliance.

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