Challenges to Finnish bioenergy sector

Esa Vakkilainen

Share of renewable in energy and electricity

2005 40%

2010

2020

2030

35%

30%

25%

20%

Primary energy Electricity

15%

10%

5%

VISION

VISION

VISION

VISION

VISION

VISION

0%
BASE

BASE

BASE

BASE

BASE

BASE

Usage of wood and peat 1990 2006

Peat 100 Domestic wood usage Wood usage by industry and energy Bioliquors (pulping) 80

60 TWh 40 20 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Share of energy sources (renewables)

60 %

50 % Fossil fuels 40 % Peat 30 % Renewable energy Nuclear energy 20 % Others

10 %

0% 19901991199219931994199519961997199819992000200120022003200420052006

Energy consumption by sector

220 200 180 160 140 TWh 120 100 80 60 40 20 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Industry Traffic Heating of buildings Others

Share of wood and recycled of final usage

2004 ja 2005
35 % 2004 30 % 2005 25 %

20 %

15 %

10 %

5%

0% Total Industry Traffic Domestic usage Farming and forestry Services and public sector

Energy usage in domestic heating

Electric heating 25 District heating Heatpumps Natural gas Light fuel oile Heavy fuel oil 20 Coal Peat Small wood

TWh

15

10

0 Small houses Connected housest Flats in buildings Cottages etc. buildings Service buildings Industry heating Farm buildings

District heating in CHP plants

30 Other sources of energy Other renewables Other wood fuels Forest industry bioliquors Peat Other fossil fuels 10 Natural gas Oil 5 Coal 0 2000 2001 2002 2003 2004 2005 2006

25

20

TWh

15

Separate district heating

8 7 6 Other woody fuels 5 TWh 4 3 Natural gas 2 1 0 2000 2001 2002 2003 2004 2005 2006 Oil Coal Forest industry residue Peat Other fossil Other energysources Other renewables

Bioenergy growth 2005 -> 2020

120 TWh or 100 milj. 100 80 60 40 20 0 2005- TWh 2005 - 100 2020 - TWh 2020 - 100 milj. milj.e Transp. CHP Heating

Investments to renewables

700 600 500 400 M /year 300 200 100 0 New Replacement investments Transp. CHP Heating