Market Trends of Finland Renewable Energy Industry
This section covers the major market trends shaping the Finland Renewable Energy Market according to our research experts:
Wind Energy to Drive the Market
- Wind energy is Finland is the second-largest source of renewable energy, after hydropower. During 2018, it has a growth of around 55% in terms of electricity generation. With an increase in demand for cleaner energy, depleting of water level on the rivers, and irregularity of solar energy in the country, wind energy is expected to drive the market with the new installations in the coming years.
- To align with its 2050 target of reducing greenhouse gas and to reduce energy dependency on its neighboring countries, Finland is planning to install seven new wind energy projects. The first installation of the wind project is estimated to come online in 2020.
- The seven wind energy projects are estimated to add up 1.36 terawatt hour (TWh) electricity production annually, which is estimated to reduce its reliance on Sweden and Russia for power import. Moreover, Finland has few other wind projects that are under development, it includes approximately 13000 MW onshore, and 2700 MW offshore projects. The implementation of these projects is expected to drive the future renewable market of Finland.
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Hydropower to Dominate the Market
- Finland's renewable market is dominated by hydropower, with around 41% of total renewable energy installed capacity in 2019. Electricity production from hydropower was increasing until 2016, but it witnessed a slight decline on account of lower water level, but renovation and modification work on the existing power plants is expected to regain the pace and is expected to get increased during the forecasting period.
- Increasing the production capacity of the Kuusankoski hydropower plant is one of the prominent projects in the Finland hydropower sector. The renovation and modernization of the plant include the increase in efficiency of the plant to 94% and turbine capacity by 19%. The annual electricity production from the plant is estimated to get an increase from 180-gigawatt hour (GWh) to 195 GWh by 2022.
- Moreover, Finland is planning to install Pump Hydro Energy Storage (PHES) in its Pyhäsalmi mine. The Pyhäsalmi mine, located in the Town of Pyhäjärvi, is the deepest base metal mine in Europe. Feasibility study for the projects is under development. Installation of the projects is expected to add up renewable energy installation in the near future.
