Finland is a long-established global frontrunner in combined heat and power (CHP) and district heating and cooling (DHC); because of the cold climate and limited energy resources, CHP has been the natural economic choice for many applications.
Now Finland faces the challenge of exploiting the few remaining locations suitable for CHP, and increasing the use of DH further in cities such as Helsinki, where the majority of heat demand is already met via district heating. District cooling is being adopted in larger urban areas to complement existing district heating and may provide continued growth opportunities.
Yet, with electricity prices depressed due to lower demand, and new nuclear generation capacity due to come online in the coming years, the economic viability of CHP is less certain.
This report summarises the various applications of CHP and DHC in Finland, discusses the impact the government has had on developments, and provides an overview of the challenges and opportunities facing the industry in the future.