Overview

The most important development in the Finnish energy sector in recent years has been the construction of a new nuclear power plant. Scheduled to come on line in 2009 with a capacity between 1.0 and 1.6 GWe, the plant is expected to provide needed generating capacity with zero greenhouse gas emissions. Since this will be the first nuclear plant built in a liberalised market, the government should monitor the plants progress and stand ready to act should delay or other obstacles arise. Finland uses international trade and other tools to lower energy costs and increase energy security. Greater international co-operation through Nordpool, in international transmission lines and plans for backup power, and efforts to diversify natural gas supply options would reinforce this policy. While Finlands light-handed approach to regulation has worked well, the report recommends areas of more proactive regulation, especially in the fields of electricity networks and district heating systems. Finland has agreed to keep GHG emissions at 1990 levels during the first Kyoto commitment period, yet projections show a 15% increase in emissions under business-as-usual conditions. Actively integrating international measures such as emissions trading into domestic programmes and more market-based approaches to renewable energy will ease the path towards Kyoto compliance.

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9781280171499

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