Overview

Total Final Energy Consumption (TFC) was 24.8 Mtoe in 2017, i.e., at the same level as in 2000 despite annual variations during the period. Industry is the largest energy consuming sector accounting for 45% of the TFC in 2017 which is 6 percent points less than in 2000. The share of transport increased from 18% to 20% over the same period. The share of all other sectors in TFC increased from 31% to 35%.

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

Source: ODYSSEE

Energy efficiency of final energy consumption sectors, as measured by ODEX, improved by 11% over the 2000-2017 period. The level of ODEX was quite similar in all sectors in 2017 apart from the transport sector where it has been improving at a slower pace.

Figure 2: Technical Energy Efficiency Index

Source: ODYSSEE

Finland's Integrated Energy and Climate Plan contains the national targets and the related policy measures to achieve the EU's energy and climate targets. With regard to energy efficiency, in accordance with the EED, Finland’s indicative national energy efficiency target for 2020  is the absolute level of final energy consumption at 310 TWh. The energy efficiency target to contribute to EU 2030 target in final energy consumption is 290 TWh. In 2017, Finland had achieved a level of 294 TWh for final energy consumption, corresponding to 371 TWh of primary energy consumption. 

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 15% 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 "perfectly" correct the impact of weather, especially when there are large variations. 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 per dwelling by end-use (except space heating)

Source: ODYSSEE

Energy consumption in the residential sector (Figure 5) has increased by 0.69 Mtoe (8 TWh). It was driven upwards particularly by the continuously increasing number of dwellings and to a lesser extent increasing size of homes. On the opposite, energy savings partially offset the effect of the drivers of consumption growth.

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

Source: ODYSSEE

In the services sector both the total final consumption and 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 equipment, electricity is needed.

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 concerning buildings constructed after the beginning of 2018. Heat pumps are promoted in existing houses by tax rebates 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. There are energy efficiency agreements and an energy audit scheme 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 43% and road freight transport for 30% of energy consumption in transport. The share of cars has declined by 3.5 percent points since 2000. In contrast, the share of air transport has increased by 5.2 percent points reaching over 17% of the total in 2017.

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 buses tends to slightly decrease. The proportion of rail transport has remained steady.

Figure 8: Share of transport modes in passenger traffic

Source: ODYSSEE

In freight transport, there has been a modest modal shift from trucks to rail transport. The proportion of rail transport has increased by 2.1 percent points.

Figure 9: Share of modes in freight traffic

Source: ODYSSEE

In 2017, energy consumption by transport was 15% higher than in 2000. Energy savings compensated over half of the 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 past 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 CO2 emission norms, taxation favoring 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. Measures are in place to support public transport and to promote non-motorized modes. In road transport of goods, allowing larger trucks to enter the roads is making a considerable contribution.

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
Fuel taxationTaxes on transport fuels are much higher than required by the EU directiveHigh. Notified for EED Art. 7. Link
Source: MURE

Industry

In 2017, energy consumption in industry was 11.1 Mtoe, i.e. 9.5% under the 2000 level. The energy-intensive pulp and paper, steel and chemical industries are the largest energy consumers, with 56%, 10% and 9% shares, respectively. Structural changes, such as mill closures have reduced the absolute consumption of pulp and paper industry from 7.3 Mtoe in 2000 to 6.2 Mtoe in 2017.

Figure 11: Final energy consumption by branch

Source: ODYSSEE, steel including blast furnaces

The specific energy consumption of steel production is at a lower level than in 2000. The specific consumption of pulp and paper is higher than in 2000 but still 9% lower than the EU average. Factors like product mix, growing production of kraft pulp for exports and even climate have an impact on both the national level of specific consumption and country comparisons. 

Figure 12: Unit consumption of energy‐intensive products (toe/t)

Source: ODYSSEE

The observed decline in industrial energy consumption in 2000-2017 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 1997 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 subsidized 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