UPM-Biofore-Magazine-2-2019

THE ENERGY MARKET is evolving at a rapid pace, with renewables such as water, wind and solar energy offering a competitive alternative to conventional production.

How does the circular economy fit in?

“GLOBAL INVESTMENTS in renewable energy sources will reach EUR 2.3 trillion by the end of this decade,” notes Jukka Leskelä.

Bioenergy – a key component of the circular economy – has become a major part of energy production, especially in liquid fuel manufacturing and heat production. Leskelä notes that there is an excellent fit between forestry, bioenergy and the maintenance of carbon sinks. “In Finland, forest-based fuels are generated as side products of forest management. For example, tree bark, sawdust, bioliquids and other felling residues can be utilised in energy production. We regard this as a highly sustainable approach.” Leskelä predicts that forest energy will gain significance as the Finland’s energy industry reduces coal usage to zero and halves its use of peat. “As the production methods used in district heating become more varied, the need for forest-derived bioenergy will gradually decrease as well.” More flexible demand and supply Energy production is changing rapidly, but the consumer market, too, is at a turning point. Due to the use of renewable energy sources, the price of electricity is fluctuating more than before. This can turn out to be profitable both for households and for the industry. “For example, district heating systems offer a good opportunity to utilise flexible demand. When it is windy, electricity is produced abundantly, and as a result, its price drops. Cheap electricity can in turn be

used for heating the water in district heating systems,” Leskelä explains. Meanwhile, digitalisation also has a role to play in this picture. Advances in battery technology and controllable charging systems enable unprecedented flexibility in energy production. For example, car batteries can be charged, and household heating controlled in line with fluctuations in the price of electricity. “Fluctuations in energy production can be balanced by constructing new electricity transmission connections, or, in other words, transferring energy to places where the weather is not sunny or windy. The construction of cross-border networks alone is not sufficient, as the proportion of renewable energy is increasing globally,” Leskelä states. Climate-neutral Finland The Finnish government has set the target of making Finland climate neutral by 2035. This means that the country’s annual emissions will be balanced out by carbon sinks. “The energy industry believes that the goal is achievable. Finland has halved its electricity and heat

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