Electricity and heating

The production of energy is not a value in itself. Rather, energy is needed to promote well-being. As energy production is very resource intensive and causes numerous environmental impacts, the priority is to lower the energy intensity in all sectors and direct the planning and technological development of energy systems so that a maximum amount of well-being is generated by each produced energy unit. At the moment, energy production causes roughly 75 per cent of Finnish climate emissions. Industry uses 45 per cent of energy, heating 25 per cent and transport 17 per cent.

Energy efficiency can be increased by electrifying transport, heating and industry wherever applicable. The energy efficiency of an electric motor can be up to 90 per cent, whereas an average internal combustion engine works with an efficiency of about 20 per cent. Moreover, the energy efficiencies of electricity production and transmission are high. If the electrification of the energy sector, and the efficiency gains through eliminating wasted energy, succeed to the greatest extent possible, the usable energy available to society – that is, exergy – may stay close to current levels even if less energy is produced.

Energy production must shift from fossil sources to non-burning technologies. The most important sources are wind and solar, hydro and nuclear power.

These non-burning energy production technologies have existed for decades. Currently, their development focuses on reducing unit costs, for example, through bigger offshore wind farms. In addition, methods for producing wind power from lighter winds and photovoltaic electricity even during cloudy weather are being investigated.

Completely new forms of energy production, such as fusion power, still need significant work and cannot be expected to mature in the next decade. It is possible to build more nuclear fission power, but the construction of fission plants and development of new types of fission reactors have proven to be slow. Wind and solar power offer the greatest potential, and both are proving to be the most cost effective forms of energy production in many areas.

The main problem in energy production is energy storage. The production of wind and solar power varies according to the weather and seasons. Current nuclear power has limited capacity for rapid adjustments. Hydro power can be used in balancing the production from wind, solar and nuclear, but major new hydro power projects are not possible, at least not in rivers.

On one hand, the transition to low-emission energy production necessitates major investments that inevitably raise energy prices. On the other hand, increased energy efficiency may reduce energy use considerably. By using efficient transport and housing, it is possible to maintain a lower energy bill even if the unit price of energy goes up. In any case, according to the principles of just transition, the increased burden that higher energy prices will have on vulnerable groups must be compensated from the public purse.

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Heating of buildings causes about 25 per cent of Finnish emissions. In the Helsinki area, it is nearly 60 per cent. In small cities and areas of dispersed settlement, it is already cost effective to transition to the use of heat pumps with geothermal, ambient air and lakes and rivers as the sources of heat. Oil heating and direct electric heating must be abandoned quickly. Further, in larger cities, the combination of wind power and heat pumps is an effective and nearly emissionless source of heating.

Unfortunately, current low-emission technologies and heat sources cannot guarantee 100 per cent heating service during prolonged periods of sub-zero (Celsius) temperatures. Therefore, cities with district heating require a combination of heating technologies.

The first step is minimising the need for heating, for instance, through better energy efficiency in buildings and limiting room temperature to that recommended by health professionals. The need for heating can also be minimised by so-called smart energy solutions that anticipate and regulate temperatures according to use. The possibility of lowering temperature in some spacious buildings during sub-zero periods should also be investigated in order to reduce peak loads.

In addition, low-emission heating technologies, such as heat pumps connected to various heat sources, require further development. In the long run, small and modular fission plants may also become available.

BACKGROUND

BIOS (2019). To Continue to Burn Something? Technological, Economic and Political Path Dependencies in District Heating in Helsinki, Finland. Energy Research & Social Science.