World Energy Outlook 2015 Deputy Director General Petteri Kuuva WEC Finland, 23 Nov. 2015

Total energy consumption 1975–2014* Source: Statistics Finland, Energy supply and consumption Share of total energy consumption in 2014: Wood fuels 25% Oil23% Nuclear energy18% Coal10% Natural gas7% Net imports of power5% Peat4% Hydro and Wind4% Others4%

Fossil fuels and renewables 1970–2014* Source: Statistics Finland, Energy supply and consumption In 2014, share of RES: 32% of TPES In 2013, share of RES 36.8% of final consumption

Finnish energy and climate policy goals towards 2030

Renewable energy WEO 2015 Power sector is leading the change 50% of global new power generation investments in 2014 By 2040, 50% RES-E in EU By 2040, globally need to add generation capacity more than is installed today  Market rules, policies and subsidies are needed Finland Not only RES-E, but also RES in heating and transport Share of district heating is high, which allows fuel switch from peat and coal to forest biomass Advanced biofuels in transport sector Share of RES 37% now, Government Programme goal 50% in 2030 Biofuels goal 40 % and cut half of oil consumption by 2030

Variable renewable: Wind and Solar WEO 2015 Cost reductions of wind and solar Wind: new turbine designs and higher hub heights PV Solar: lower prices of panels and installation Finland Wind: Onshore wind cheaper (hub heights >140 m), but still NIMBY problem; subsidy scheme will be revised PV Solar: Micro systems almost economical if PV replaces power purchases (tax subsidy for <100 kW systems) Investment aid of 30 % for larger systems Capacity value minimal for peak load in winter

Fossil fuel subsidies WEO 2015 Prices below market prices Aimed to help the poor, but work counter to many energy and economic objectives Finland Fossil fuel subsidies ≠ environmentally harmful tax subsidies (OECD definition) Tax subsidies in Finland, e.g. Lower electricity tax for energy intensive industry and tax rebate to level international playing field Lower tax for diesel compared to gasoline to level transportation costs Finnish tax levels way above EU minimum

Conclusions WEO 2015: Flagship publication with extensive data-based information for policy makers and civil servants Global trends for energy and climate However trends have to be adapted to the local circumstances Finland is committed to EU goals for GHG reductions, renewable energy and energy efficiency Ambitious national goals for RES, biofuels for transport and reduction of the use of fossil fuels