Finland profile

Overview

Climate-corrected Total Final Energy Consumption (TFC) was 23 Mtoe in 2022, the same as in 2000. Industry is the largest energy consuming sector accounting for 42% of the TFC in 2022 which is 7.4 percent points less than in 2000. The proportion of transport in TFC was 17%, the same as in 2000. The share of the residential sector was 24% and that of the services sector 14%, with both sectors expanding their share of the total since 2020.

Energy efficiency of final energy consumption sectors, as measured by ODEX, improved by 17% over the 2000-2022 period, i.e. 0.7%/year on average. ODEX improved most in the residential sector (1.1%/year) and least in the services sector and in industry. 

Energy savings achieved in the period 2000-2022, calculated with top-down Odyssee indicators, reached 4.8 Mtoe in 2022. Savings in industry made the largest contribution (1.9 Mtoe) followed by the residential sector (1.8 Mtoe). Note: There is a break in the statistical data series for the residential sector in 2007-2008. 

Finland's total energy supply was 31.7 Mtoe in 2022 declining by 0.7 Mtoe (2.2%) from the 2000 level. Changes in the power mix and in final energy consumption both had a very small contribution to the observed changes while use of fuels for non-energy uses has increased. Efficiency improvements in "Other transformations" can be attributed to district heat supply, where use of waste heat and flue gas scrubbers have been increasing. Use of highly efficient CHP has had an important role in Finland already for several decades.

Although the final energy consumption in 2022 was at the same level as in 2000, several factors had opposing effects offsetting each other. Economic activity and other sectoral activity factors have increased consumption. Energy savings (as measured by ODEX) and structural effects have reduced consumption, by 4.8 Mtoe and 2.5 Mtoe, respectively. 

Finland's Integrated Energy and Climate Plan of June 2024 contains the national targets and the related policy measures to achieve the EU's energy and climate targets. In accordance with the EED (2012), Finland’s indicative national energy efficiency target for 2020 was 310 TWh absolute level of final energy consumption. The realized level was 271 TWh. The energy efficiency target to contribute to EU 2030 target in final energy consumption is capping Finland's final energy consumption at 239.6 TWh, calculated with EED (2023) Annex 1 formula. 

Buildings

Climate-corrected final energy consumption has grown by 26% in service sector buildings and by 24% in residential buildings from 2000 to 2022. Floor area in the services sector increased by 54% and in dwellings by 36%, and the number of households increased by 23% over the same period. 

Figure 7 illustrates the proportion of different end-uses in households. Space heating dominates the consumption with 67% share. The share of water heating is 16% and that of appliances and lighting 15%, whereas cooking and air-conditioning have negligible contributors.  

Unit consumption for space heating per m2 in households has declined by about 16% (i.e. 0.8%/year) since 2000 (Figure 8). This change is considerable as unit consumption includes ambient heat used by heat pumps; without ambient heat the reduction rate was almost 40% faster (1.1%/year). Small annual variations in the long-term trend can be attributed to the fact that normalization with heating degree days does not "perfectly" correct the impact of weather. 

Energy consumption of water heating and electric appliances in dwellings has decreased, by 13% (i.e. 0.6 % per year) and 26% (1.1% per year), respectively. Eco-design policy has contributed significantly to the reduction of electricity use in households. Other uses, namely air conditioning and cooking, remain negligible.

Electricity consumption (with climatic correction) per dwelling has declined by since 2010 by 12%. The change in lighting is the most significant (-55%) but there is a positive development also in use for electric appliances (-12%). Thermal use is rather steady; while the number of heat pumps has been increasing, they often replace direct electric heating. 

Energy consumption in the residential sector has increased by 1.1 Mtoe (12.9 TWh) since 2000. It was driven upwards particularly by the continuously increasing number of dwellings, while the growth in the average size of homes has had only a marginal effect since 2010. On the other hand, energy savings fully offset the effect of these two drivers of consumption growth. Consumption growth was strongly affected by "other" factors, which include the increased use of ambient heat (+0.7 Mtoe) and behavioural changes, including increased presence at home during and after the COVID-19 pandemic (+0.8 Mtoe).

Energy consumption for space heating in households has increased from the 2000 levels by 0.37 Mtoe. Energy savings more than offset the impact of increase in the number of occupied dwellings (activity) and the moderate growth of dwelling size. "Other" factors contributed to the growth by 0.6 Mtoe mainly corresponding to the increased use of ambient heat by heat pumps. 

Both energy consumption and electricity consumption per m2 have considerably declined in the services sector after 2000, around 0.7%/year.  

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. The number of heat pumps has been growing rapidly as they are promoted in existing houses by income tax rebates, in oil heated households by subsidies (until mid-2025) and by information measures. Ground-source heat pump is the most popular main heating system in new single-family houses. There are energy efficiency agreements and an energy audit scheme in place in the private services sectors and for municipalities and joint municipalities.

Transport

Energy consumption of passenger transport is now at the same level as in 2000. The most notable change since 2000 is the 7.6 percent point growth in the proportion of trucks and light vehicles. Cars account for 47% and trucks and light vehicles for 42% of energy consumption in transport. 

Energy consumption of passenger transport is now at the same level as in 2000. The COVID-19 crisis temporarily reduced usage of public transport, by 39% in trains and 14% in busses between 2019 and 2020. However, in 2022 the proportion of public transport in total passenger transport was already slightly better than in 2000.

The proportion of freight transport on roads has increased by 3 percentage points, while that of rail transport has declined by an equal amount between 2000 and 2022.   

Energy consumption of cars per passenger-km has declined by 15% since 2000. While new cars are more energy efficient, the sluggish fleet renewal rate slows down the process.

In 2022, energy consumption of transport was slightly lower than in 2000. Energy savings more than compensated for the changes in the activity levels (i.e. traffic volumes) and a higher share of road transport (modal change). Other factors increasing consumption were a shift from mass goods (e.g. paper) to parcelled goods, and increased empty runs due to logistical challenges related to customer needs.

Energy improvements in new vehicles are taking place because of the CO2 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. Measures are in place to support public transport and to promote non-motorized modes. In road transport of goods, allowing larger and heavier trucks to enter the roads is making some contribution.

Industry

In 2022, energy consumption in industry was 9.68 Mtoe, i.e. 15% under the 2000 level. The energy-intensive pulp and paper industry is by far the largest industrial sub-sector with 55% share of the total, followed by chemical and steel industries (9% and 8% shares, respectively). 

The specific energy consumption pulp and paper declined by 12% from 2000 to 2022. Factors like capacity utilization rates, 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. The specific consumption of steel production was 21% higher in 2022 than in 2000.

The observed decline in industrial energy consumption from 2000 to 2022 was driven by structural changes towards less energy consuming branches (-2.7 Mtoe) and energy savings (-1.9 Mtoe). In turn, growth in industrial activity has increased consumption by 3.2 Mtoe.

The first voluntary agreements to save energy in industry were launched in 1997. The current third generation runs during the period 2017-2025 and the next period is under negotiations. This is the main measure in industry. Monitoring results show that energy savings from the 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.