WEC Energy Trilemma Index 2015 Commentary Professor Sanna Syri, Energy Technology and Energy Economics Aalto University

WEC index system: clear indicators -> clear results World countries have huge differences  this kind of method is good for portraying the overall picture  Main dimensions are Security, Equity and Sustainability => ok  Main features are clearly highlighted  But, for national level policy-making, more resolution is needed  What can we learn from this to Finland’s new Energy and Climate strategy ?

… Clear indicators -> clear results

Top 10 in 2014: Top 10 in 2015: => My first guess: Industrial countries blessed with large resources of hydropower and, in many cases, nuclear power.

Methods Energy/GDP Heating? Heating/cooling ? Lack of heating/cooling indicators due to data difficulties?

If CO2 emissions or diversity of heating sources were included, what would happen? DH from CHP is common, diverse fuel mix, also significant amount of biomass  In Central Europe direct heating with imported natural gas is common, not best for sustainability, nor security. Are gas and coal counted in the same way for security? Energy: GDP indicator Aims to indicate efficient use of energy in the national economy It also punishes from GDP based on industry, as Finland is.

What can we learn from this to Finland’s new Energy and Climate strategy ? For national level policy-making, ”higher resolution” is needed. Key energy policy issues at the moment in Finland: European wide issue: Subsidized RES on the electricity market is leading to lack of market-based capacity in wintertime Finland is increasingly dependent on electricity imports (Close-by situation when Lo1 fell out => emergency reserves of Fingrid were started) RES support framework will be re-designed in Finland. Are we loosing our CHP ? Fuel taxation increase should rather be on condensing power only. Low electricity prices challenge CHP profitability. Oil imports burden our trade balance. 2/3 is consumed in transport and machinery. This is also a difficult sector for deep CO 2 emissions. => More emphasis on EV’s, public transport and walking & cycling is needed.