Overview

Total Final Energy Consumption (TFC) have remained almost level in the 2000-2015 period and reached 24.5 Mtoe in 2015. Industry is the largest energy consuming sector accounting for 50% of the TFC in 2000 and 44% in 2015. The share of transport increased from 17% to 19% over the same period. The share of the residential sector in TFC increased from 19% to 22% and that of the services sector grew from 10% to 12%.

Figure 1: Final energy consumption by sector (normal climate)

Source: ODYSSEE

Energy efficiency of final energy consumption, as measured by ODEX, improved by 11% over the 2000-2015 period. Improvement can be seen in all sectors, but most notably in industry. However, improvement was strongest until 2010 but has levelled off due to the continuation of the sluggish economic situation. Similar stagnation can be seen in the service and transport sectors.

Figure 2: Technical Energy Efficiency Index

Source: ODYSSEE

The most recent National Energy and Climate Strategy was adopted in 2016 and National Energy Efficiency Action Plan (NEEAP-4) in 2017. The measures included in NEEAP-4 are expected to save 4.3 Mtoe/year (50.3 TWh/year) by 2020 including savings in all sectors, also industry subject to the Emissions Trading Scheme. The building sector (1.7 Mtoe/year, 19.3 TWh/year) and industry (1.1 Mtoe/year, 13.2 TWh/ year) will contribute most to the savings followed by transport (0.5 Mtoe/year, 6.1 TWh/year) and cross-cutting measures (0.4 Mtoe/year, 4.3 TWh/year). The most effective individual measures continue to be the voluntary energy efficiency agreements in industry, building regulations, promotion of heat pumps, improvement of energy efficiency of new cars and the eco-design requirements.

Table 1: Sample of cross-cutting measures

MeasuresNEEAP measuresDescriptionExpected savings, impact evaluationMore information available
Eco-designyesImplementation of the Eco-design DirectiveHighLink
Source: MURE

Buildings

As Figure 3 shows, heating consumption in households has declined by about 10% since 2000, mainly due to the increased use of heat pumps. The small variations from the long-term trend in some years (2008, 2013, 2014) can be attributed to the fact that normalization with heating degree days does not  correct the impact of weather "perfectly". Figure 4 illustrates the changes in the proportion of different energy uses in households, excluding heating. Electricity use by appliances (including cooking) and lighting has had a declining share due to energy efficiency improvements, accelerated in the past few years by the eco-design requirements.

Figure 3: Energy consumption of space heating per m2 (normal climate)

Source: ODYSSEE

Figure 4: Energy consumption by end-use per dwelling

Source: ODYSSEE

Energy consumption in the residential sector (Figure 5) is driven upwards particularly by continuously increasing number of dwellings and larger homes. On the opposite, energy savings offset partially the effect of the drivers of consumption growth and reduce the energy consumption

Figure 5: Main drivers of the energy consumption variation in households

Source: ODYSSEE

In the services sector both the total final consumption per employee and particularly electricity consumption per employee have increased. One reason is the need for companies to cut costs meaning that fewer people are needed to provide the same services, but usually with the same level of energy use. At the same time, in par with digitalization and added appliances, electricity is needed for the new equipment.

Figure 6: Energy and electricity consumption per employee (normal climate)

Source: ODYSSEE

In Finland, thermal building regulations were first introduced in 1976 and have become increasingly demanding thereafter. The building code for building renovation took force in 2013. Legislation governing nearly-zero energy buildings was issued in December 2016 and will concern buildings constructed starting in 2018. The Ministry for Environment is preparing the Decrees to specify the nZEB requirements in practice. Heat pumps are promoted in existing houses by tax debates and information measures and the amount has been increasing rapidly. Ground-source heat pump is the most popular main heating system in new single-family houses. Voluntary energy efficiency agreements in the oil sector promote, among other things, replacement of old inefficient oil-fired boilers in households and there are energy efficiency agreements in place also in the private services sectors and for municipalities and joint municipalities.

Table 2: Sample of policies and measures implemented in the building sector

MeasuresDescriptionExpected savings, impact evaluationMore information available
Building regulations (2003, 2007, 2010, 2012), new buildingsThe most recent code implements primary energy requirements for the overall energy performance of buildings. HighLink
Building regulations, renovationThese regulations implement the respective EPBD requirements in Finland.HighLink
Promotion of heat pumps in single family houses and terraced housesTax rebate and information measures to encourage installation of different types of heat pumps.HighLink
Energy efficiency agreement for oil-heated buildingsVoluntary energy efficiency agreement e.g. encouraging the replacement of old oil-fired boilersHighLink
Source: MURE

Transport

Cars account for 45% and road freight for 31% of energy consumption in transport. The share of cars has declined by 1.8 percent points and that of bus transport by 0.7 percent points since 2000. In contrast, the share of air transport has increased by 3.4 percent-points reaching over 15% of the total in 2015.

Figure 7: Split of the transport energy consumption by mode

Source: ODYSSEE

In passenger transport the proportion of cars has slightly increased. On the other side, the  share of bus tends to slightly decrease. The proportion of rail transport has remained steady.

Figure 8: Share of transport in passenger traffic

Source: ODYSSEE

In freight transport, there has been a very modest modal shift from truck transport to rail transport. The proportion of rail transport has increased by 1.8 percent points.

Figure 9: Share of modes in freight traffic

Source: ODYSSEE

In 2015, energy consumption by transport was 13% higher than the 2000 level. Energy savings more than compensated for changes in the activity levels (e.g. more traffic) but were offset by other factors which contributed to the growth. These are shift from mass goods (e.g. paper) to parceled goods, and   increased empty runs due to difficulties in logistics during the recession and because of customer needs.

Figure 10: Main drivers of the energy consumption variation in transport (2000-2015)

Source: ODYSSEE

Energy improvements in new cars are taking place because of the EURO emission norms, taxation favouring less emitting cars and information measures. However, the pace of fleet renewal in Finland is among the slowest in Europe causing some delay in seeing the full benefit of these measures. Regardless, these measures are expected to make 75% contribution towards savings estimated for 2020.  Measures are in place to support public transport and to promote non-motorized modes (total 17% of 2020 savings). In truck transport allowing larger trucks to enter the roads is making a 9% contribution to the expected energy savings in 2020.

Table 3: Policies and measures into force in the transport sector

MeasuresDescriptionExpected savings, impact evaluationMore information available
Energy efficiency improvement of carsImplementation of the CO2 emission norms improves the energy efficiency of new cars.High. Impact evaluation shows the combined impact of emission norms, emission based taxation and information measures.Link
Source: MURE

Industry

In 2015, energy consumption in industry was 11 Mtoe, i.e. 15% under the 2000 level. The energy-intensive pulp and paper, steel and chemical industries are the largest energy consumers, with 55%, 11% and 9% shares, respectively. However, structural changes have reduced the absolute consumption of paper industry from 7.4 Mtoe in 2000 to 5.9 Mtoe in 2015.

Figure 11: Final energy consumption by branch

Source: ODYSSEE

The specific energy consumptions of both paper and steel production are at lower level than in 2000 but portray very different trends inside the time period. Unit consumption of steel peaked a year after when the economic crisis started but declined thereafter. Unit consumption of paper declined until 2009, increased rapidly until 2012 but took a downward turn thereafter. In industry, energy consumption is not directly proportional to product output because it cannot be fully adjusted to dropping demand.

Figure 12: Unit consumption of energyÔÇÉintensive products (toe/t)

Source: ODYSSEE

The observed decline in industrial energy consumption in 2000-2015 is driven by energy savings together with structural changes towards less energy consuming branches.

Figure 13: Main drivers of the energy consumption variation in industry

Source: ODYSSEE

The first voluntary agreements to save energy in industry were launched in 2007 and the third generation has started for the period 2017-2025. This is the main measure in industry. Monitoring results show that energy savings from these agreements are very high. Energy audits have made a major contribution but subisidized energy audits are available now only for those falling outside the scope of mandatory energy audits.

Table 4: Policies and measures into force in industry

MeasuresDescriptionExpected savings, impact evaluationMore information available
Energy efficiency agreement for industriesThe energy efficiency agreement is a framework contract signed by competent ministries with the business sector. Individual companies join the agreement by an accession document.HighLink
Energy auditsSubsidized voluntary energy audits for companies not mandated to carry them out. HighLink
Source: MURE