Nordic energy market

Last updated

Nordic electricity market is a common market for electricity in the Nordic countries. It is one of the first free electric-energy markets in Europe and is traded in NASDAQ OMX Commodities Europe and Nord Pool Spot. In 2003, the largest market shares were as follows: Vattenfall 17%, Fortum 14.1%, Statkraft 8.9%, E.on 7.5%, Elsam 5%, Pohjolan Voima 5%. Other producers had 42.5% market share.

Contents

Denmark

From 1999 and onwards, Denmark is a net exporter of fossil energy. [1]

Wind power in Denmark

Wind power provided 18.9% of electricity production and 24.1% of generation capacity in Denmark in 2008, [2] Denmark was a pioneer in developing commercial wind power during the 1970s, and today almost half of the wind turbines around the world are produced by Danish manufacturers such as Vestas and Siemens Wind Power along with many component suppliers. [3]

Coal power in Denmark

Coal power provided 48.0% of the electricity and 22.0% of the heat in district heating in Denmark in 2008; and in total provided 21.6% of total energy consumption (187PJ out of 864PJ) [4] and is based mainly on coal imported from outside Europe. [5]

Finland

Olkiluoto Nuclear Power Plant with two existing units. The third unit and Finland's fifth (far left) is computer manipulated and was planned to be ready by 2009, but were still under construction As of February 2020 . EPR OLK3 TVO fotomont 2 Vogelperspektive.jpg
Olkiluoto Nuclear Power Plant with two existing units. The third unit and Finland's fifth (far left) is computer manipulated and was planned to be ready by 2009, but were still under construction As of February 2020.

Cheap and reliable energy is of exceptional importance to Finland. The energy demand is high because of its cold climate and the structure of its industry. Finland's hydrocarbon resources are limited to peat and wood, while neighboring Norway has oil and Estonia oil shale. Until the 1960s, Finnish energy policy relied on the electricity produced by hydropower stations and extensive decentralised use of wood for energy. Finland's 187,888 lakes do not lie much above sea level – less than 80 metres in the case of the two biggest lakes, Saimaa and Päijänne. Consequently, Finland has less hydropower capacity than Sweden or Norway.

Finnish energy cooperative Teollisuuden voima operates four nuclear reactors that produce 18 percent of the country's energy. [6] There is also one research reactor in Otaniemi campus and Olkiluoto Nuclear Power Plant, the fifth AREVA-Siemens-built reactor – world's largest at 1600 MWe and a showcase of new technology – is currently under construction. It was originally planned to be finished by 2009, it is expected to be online in 2022. [7] Finland's Kyoto and EU emission terms are causing a sharp increase in energy prices and the existing reactors are aging: there has been talk about many more reactors and the sixth is already under environmental impact assessment. [8]

Wind power would be by far the cleanest energy form in Finland (the existing hydropower plants and nuclear power excluded), but because political parties – particularly the True Finns – are hesitant to grant wind power permits, most energy is produced from fossil fuels, mainly coal and oil. About 25 percent of energy production is categorized to be renewable energy, which is high compared to the EU average 10 percent. About one fifth of all the energy consumed in Finland is wood-based. Industrial residue and garbage are often utilized for energy. Many homeowners use wood as an additional (but not primary) heat source. About seven percent of electricity is produced from peat harvested from Finland's extensive bogs.

Currently, some electricity is imported to Finland. In recent years, a varying amount (5–17 percent) of power has been imported from Russia, Sweden and Norway. The Norwegian and Swedish hydroelectric plants remain an important source for imported power. The current energy policy debate is centred on self-sustainability. There are plans to build a submarine power cable from Russia, but this is also considered a national security issue. The government has already rejected one plan for such a power cable. Neste Oil operates two large oil refineries for domestic and Baltic markets, refined products making 36 percent of chemical exports. [9]

Norway

Hydropower provides almost 98% of the energy production in Norway. The country lacks big lakes that can be used for water storage. However, there are great height differences due to the country's mountainous nature. This together with heavy rain and snowfall each year makes for favourable hydropower conditions. Norway has some of the largest hydroelectric power stations in Europe, such as Kvilldal Hydroelectric Power Station at 1240 MW, which is greater capacity than Sweden's largest, Harsprånget at 977 MW.

Norway exports a significant share of its electricity production via existing submarine cables such as Skagerrak to Denmark, NorNed to the Netherlands. There will be future exports via North Sea Link to the UK and NordLink to Germany.

Oil and natural gas produced in the country is mostly exported, and the small oil amounts used are mostly for vehicles.

Sweden

Historical electricity production in Sweden by source Electricity production in Sweden.svg
Historical electricity production in Sweden by source

The 1973 oil crisis strengthened Sweden's commitment to decrease dependence on imported fossil fuels. Since then, electricity has been generated mostly from hydropower and nuclear power. Among other things, the accident of Three Mile Island Nuclear Generating Station (United States) prompted the Swedish parliament to hold a referendum on nuclear power. The referendum led to a decision that no further nuclear power plants should be built and that a nuclear power phase-out should be completed by 2010. Instead, Sweden has elected to build new reactors to replace its existing ones. [10]

In 2006, out of a total electricity production of 139 TWh, electricity from hydropower accounted for 61 TWh (44%), and nuclear power delivered 65 TWh (47%). At the same time, the use of biofuels, peat etc. produced 13 TWh (9%) of electricity, while wind power produced 1 TWh (1%). Sweden was a net importer of electricity by a margin of 6 TWh. [11] Biomass is mainly used to produce heat for district heating and central heating and industry processes.

In March 2005, an opinion poll showed that 83% supported maintaining or increasing nuclear power. [12] Since then however, reports about radioactive leakages at a nuclear waste store in Forsmark, Sweden, have been published, [13] although this does not seem to have changed the public support of continued use of nuclear power. In 2010 Parliament halted the phase-out policy, allowing for new reactors to replace existing ones. [10]

In an effort to phase out the dependency on nuclear power and fossil fuels, the Swedish government has launched a multi-billion krona programme to promote renewable energy and energy efficiency. [14] [15] The country has for many years pursued a strategy of indirect taxation as an instrument of environmental policy, including energy taxes in general and carbon dioxide taxes in particular. [14] Also in 2005, Sweden garnered international attention by announcing its intention to break its dependence on foreign oil within 15 years, with the goal of becoming the world's first oil-free economy. [15]

Internal bottlenecks in the Swedish electric grid (Cut 2 and Cut 4) [16] restrict transmission of electricity [17] between hydro plants in the north, and nuclear and fossil plants in the south. Sweden had a policy of a single system price regardless of power differences between areas up until 2011. [18] This was changed and today Sweden has four different price zones.

See also

Related Research Articles

<span class="mw-page-title-main">Electricity sector in Norway</span>

The electricity sector in Norway relies predominantly on hydroelectricity. A significant share of the total electrical production is consumed by national industry.

<span class="mw-page-title-main">Energy in Japan</span> Overview of the production, consumption, import and export of energy and electricity in Japan

Japan is a major consumer of energy, ranking fifth in the world by primary energy use. Fossil fuels accounted for 88% of Japan's primary energy in 2019. Japan imports most of its energy due to scarce domestic resources. As of 2022, the country imports 97% of its oil and is the larger LNG importer globally.

<span class="mw-page-title-main">Energy in the United Kingdom</span> Overview of the energy use of the United Kingdom

Energy in the United Kingdom came mostly from fossil fuels in 2021. Total energy consumption in the United Kingdom was 142.0 million tonnes of oil equivalent in 2019. In 2014, the UK had an energy consumption per capita of 2.78 tonnes of oil equivalent compared to a world average of 1.92 tonnes of oil equivalent. Demand for electricity in 2014 was 34.42 GW on average coming from a total electricity generation of 335.0 TWh.

Greenpeace Nordic is a regional branch of the non-governmental international environmental organization Greenpeace. Greenpeace Nordic is registered in Stockholm with offices also in Helsinki, Copenhagen and Oslo.

<span class="mw-page-title-main">Renewable energy in Finland</span> Overview of renewable energy in Finland

Renewable energy in Finland increased from 34% of the total final energy consumption (TFEC) in 2011 to 48% by the end of 2021, primarily driven by bioenergy (38%), hydroelectric power (6.1%), and wind energy (3.3%). In 2021, renewables covered 53% of heating and cooling, 39% of electricity generation, and 20% of the transport sector. By 2020, this growth positioned Finland as having the third highest share of renewables in TFEC among International Energy Agency (IEA) member countries.

<span class="mw-page-title-main">Energy in Finland</span> Overview of the production, consumption, import and export of energy and electricity in Finland

Energy in Finland describes energy and electricity production, consumption and import in Finland. Energy policy of Finland describes the politics of Finland related to energy. Electricity sector in Finland is the main article regarding electricity in Finland.

<span class="mw-page-title-main">Renewable energy in Norway</span> Overview of renewable energy in the Kingdom of Norway

Norway is a heavy producer of renewable energy because of hydropower. Over 99% of the electricity production in mainland Norway is from 31 GW hydropower plants. The average hydropower is 133 TWh/year. There is also a large potential in wind power, offshore wind power and wave power, as well as production of bio-energy from wood. Norway has limited resources in solar energy, but is one of the world's largest producers of solar grade silicon and silicon solar cells.

<span class="mw-page-title-main">Energy in Switzerland</span> Overview of energy in Switzerland

Energy in Switzerland is transitioning towards sustainability, targeting net zero emissions by 2050 and a 50% reduction in greenhouse gas emissions by 2030.

The electricity sector in Finland relies on nuclear power, renewable energy, cogeneration and electricity import from neighboring countries. Finland has the highest per-capita electricity consumption in the EU. Co-generation of heat and electricity for industry process heat and district heating is common. Finland is one of the last countries in the world still burning peat.

<span class="mw-page-title-main">Electricity sector in Sweden</span> Overview of the electricity sector in Sweden

Majority of electricity production in Sweden relies on hydro power and nuclear power. In 2008 the consumption of electricity in Sweden was 16018 kWh per capita, compared to EU average 7409 kWh per capita. Sweden has a national grid, which is part of the Synchronous grid of Northern Europe. A specialty of the Nordic energy market is the existence of so-called electricity price areas, which complicate the wholesale Nordic energy market.

<span class="mw-page-title-main">Electricity sector in Denmark</span> Overview of the electricity sector in Denmark

Denmark's western electrical grid is part of the Synchronous grid of Continental Europe whereas the eastern part is connected to the Synchronous grid of Northern Europe via Sweden.

<span class="mw-page-title-main">Electricity sector in France</span> Overview of the electricity sector in France

The electricity sector in France is dominated by its nuclear power, which accounted for 71.7% of total production in 2018, while renewables and fossil fuels accounted for 21.3% and 7.1%, respectively. France has the largest share of nuclear electricity in the world, and together with renewable energy supplies, this has helped its grid achieve very low carbon intensity.

<span class="mw-page-title-main">Electricity sector in Russia</span> Overview of the electricity sector in Russia

Russia is the fourth largest generator and consumer of electricity in the world. Its 440 power stations have a combined installed generation capacity of 220 GW.

Denmark imports but does not produce nuclear energy, which is in accordance with a 1985 law passed by the Danish parliament, prohibiting power production from nuclear energy in Denmark. In 2014 and 2015, (imported) nuclear power was 3-4% of electricity consumption in Denmark.

<span class="mw-page-title-main">Electricity sector in Belgium</span> Overview of the electricity sector in Belgium

Electricity production in Belgium reached 87.9 terawatt-hours (TWh) in 2020, with nuclear power (39%), natural gas (30%), and wind (15%) as the primary sources. Additional contributions came from biofuels and waste (7%), solar (6%), and coal (2%). In the same year, the total electricity demand was 80.9 TWh, with consumption predominantly from the industrial sector (50%), followed by commercial (25%), residential (23%), and transport (2%) sectors.

Estonia's electricity sector is interconnected with regional energy markets, particularly through connections with Finland, Latvia, and Russia. The direct electrical interconnection with Finland was established in 2006 and was further strengthened by the Estlink 2 interconnector in 2014. Estonia joined the Nord Pool Spot market by 2012, securing its own price area within this regional electricity market.

<span class="mw-page-title-main">Energy in Sweden</span> Overview of energy use in Sweden

Energy in Sweden describes energy and electricity production, consumption and import in Sweden. Electricity sector in Sweden is the main article of electricity in Sweden. The Swedish climate bill of February 2017 aims to make Sweden carbon neutral by 2045. The Swedish target is to decline emission of climate gases 63% from 1990 to 2030 and international transportation excluding foreign flights 70%. By 2014 just over half of the country's total final energy consumption in electricity, heating and cooling and transport combined was provided by renewables, the highest share amongst the then 28 EU member countries. About a third of Sweden's electricity is generated by nuclear power. In generating a year's worth of this energy, Swedes generate about 4 tonnes of CO2 emissions each. Since 2010, sustainability measures have reduced total emissions even as the population has increased.

<span class="mw-page-title-main">Energy policy of Finland</span> Overview of the energy policy of Finland

Energy policy of Finland describes the politics of Finland related to energy. Energy in Finland describes energy and electricity production, consumption and import in Finland. Electricity sector in Finland is the main article of electricity in Finland.

<span class="mw-page-title-main">Energy in Slovakia</span> Overview of the production, consumption, import and export of energy and electricity in Slovakia

Primary energy use in Slovakia was 194 TWh and 36 TWh per million inhabitants in 2009.

<span class="mw-page-title-main">Energy in Slovenia</span> Overview of the production, consumption, import and export of energy and electricity in Slovenia

Total primary energy supply (TPES) in Slovenia was 6.80 Mtoe in 2019. In the same year, electricity production was 16.1 TWh, consumption was 14.9 TWh.

References

  1. ↑ Pedersen, Peder J. Factsheet Denmark Ministry of Foreign Affairs (Denmark) , 2008. ISBN   978-87-7667-823-4 Retrieved: 25 September 2010.
  2. ↑ "Danish Annual Energy Statistics 2008" (PDF). Retrieved 31 July 2010.[ permanent dead link ]
  3. ↑ The world's leader in Wind Power, Scandinavica.com, published 2004, accessed 2007-06-22.
  4. ↑ "Energy Statistics 2008" (PDF). Retrieved 22 July 2010.[ permanent dead link ]
  5. ↑ Hansen, Jens Morten. "Dänemark – Produktion und Kommunikation – Energie" (in German). The Royal Danish Ministry of Foreign Affairs. Archived from the original on 27 September 2007. Retrieved 17 May 2010.
  6. ↑ "Energy Consumption in 2001" (PDF). Statistics Finland. Archived from the original (PDF) on 8 November 2006. Retrieved 22 January 2007.
  7. ↑ "New delay in start-up of Finnish EPR : New Nuclear – World Nuclear News".
  8. ↑ "Finnish energy groups interested in building sixth nuclear reactor". Monsters and Critics. 28 March 2007. Archived from the original on 25 February 2008. Retrieved 17 April 2007.
  9. ↑ "Kemianteollisuuden vienti toimialoittain". Chemical Industry Federation of Finland (in Finnish). Retrieved 26 April 2007.
  10. 1 2 "Sweden to replace existing nuclear plants with new ones". BBC News. 18 June 2010.
  11. ↑ "Kraftläget i Sverige, Vattensituationen" (PDF). Archived from the original (PDF) on 25 February 2009. Retrieved 5 February 2009.
  12. ↑ "Nuclear Power in Sweden". World Nuclear Association. September 2009. Retrieved 4 February 2010.
  13. ↑ "Swedish nuclear power station leaks high levels of radioactive waste into Baltic" – Forbes 29 June 2005
  14. 1 2 Ministry of Foreign Affairs, Sweden. Agenda 21 – Natural Resource Aspects – Sweden . 5th Session of the United Nations Commission on Sustainable Development, April 1997.
  15. 1 2 Vidal, John. Sweden plans to be world's first oil-free economy. The Guardian, 2/8/06. Retrieved 2/13/07.
  16. ↑ Principles for determining the transfer capacities in the Nordic power market Archived 14 July 2011 at the Wayback Machine page 4 European Network of Transmission System Operators for Electricity (ENTSO-E), 2010-02-16. Retrieved: 24 September 2010.
  17. ↑ Trading capacities Archived 28 November 2006 at the Wayback Machine Nord Pool Spot . Retrieved: 24 September 2010.
  18. ↑ Nielsen, Claus Kastberg. The economic consequences of capacity limitations on the Oresund connection Archived 19 July 2011 at the Wayback Machine page 5 Energinet.dk, 11 December 2006. Retrieved: 24 September 2010.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.