Finnish RES, nuclear increase share of demand in 2022

Finnish power production from renewable energy sources (RES) and nuclear increased their share of demand on the year in 2022 owing to falling power consumption and increased wind, which compensated for declining biomass and hydro output.

Power generation from RES and nuclear accounted for about 67.5pc of Finnish power demand, up from 60pc in 2021, as average Finnish renewable — biomass, wind, solar and hydro — and nuclear generation increased slightly in 2022 compared with the previous year, averaging 6.11GW, from 5.88GW in 2021.

In comparison, power demand decreased to about 9.04GW in 2022 from 9.67GW the year before — a 6.51pc drop on the year — following EU-wide targets for a 5pc reduction in peak power demand and a 10pc reduction in overall electricity consumption as well as Finnish transmission system operator Fingrid's voluntary winter 2022-23 power demand response mechanism. High power prices in the region, which increased to an average of €154.04/MWh from €72.34/MWh the year before also weighed on power demand during the year (see chart).

Wind generation in Finland increased sharply to 1.26GW in 2022 from just over 900MW in 2021 as the country installed 2.43GW of new wind capacity, up from 671MW the year before, which lifted Finland's total installed capacity to 5.67GW.

Nuclear output followed a similar upward trend in 2022, rising to an average of 2.75GW from 2.58GW in 2021, offsetting falling biomass and hydro output, which declined to 679MW and 1.41GW, respectively, from 743MW and 1.65GW a year earlier.

Power generation from RES is expected to increase this year, with the country aiming to install an additional 1GW of wind capacity. This will be followed by more than 1.2GW in 2024, while about 1GW is anticipated in 2025 — when wind output alone is expected to cover 28pc of Finland's energy consumption by the end of the year.

By Makani Joinville

Finnish power demand, power price GW, MWh