Energy year 2021 district heating

1. Energy Year 2021
District Heating
27.01.2022
Finnish Energy

2. The cold winter increased the need for district heating by 18 %
Temperature corrected heat consumption stayed the same as in the previous year.
27.1.2022
2
• District heat consumption 35,5 TWh
• The heating season was 0,8 oC
colder than normal year and 3,4 oC
colder than previous year.
• The district heat consumption
increased by 18 % from previous
year due to cold weather.
• Temperature corrected district heat
consumption 35,8 TWh
• Temperature correction takes into
account annual temperature
differences.

3. Monthly district heat demand
27.1.2022
3
Year 2021 was 0,5 oC colder than
the normal period of 1981-2010
• Only two months, March and
October, were warmer than
normal months during the
heating season.
• December was 5 oC colder
than normal
The cold winter months
exemplify the need for a wide
palette of fuels to ensure the
security of supply of heating.

4. CO2-neutral district heating at
high level

5. Share of climate neutral energy sources more than a
half in district heat supply: 56 %
Share of renewables and heat recovery increased from 54 percent to 56 percent
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• Recovered (recycled) heat: energy
that would otherwise go to waste
• Other biofuels: includes also the bio
share of municipal waste
• Other: non-bio share of municipal
waste, plastic or hazardous waste,
electricity.
2021
2020

6. Share of renewables has almost doubled and share of heat
recovery has more than tripled during last ten years
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2021 2011
Share of renewables has increased from 24 to 43 percent and heat recovery from 3 to 13 percent

7. Share of renewables and recovered heat well
more than a half in district heat supply
27.1.2022
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• Fossil fuels have increasingly
been replaced by biomass and
recovered heat.
• Use of biomass has more than
doubled during last decade.
• Amount of recovered heat has
more than tripled since 2010.
Recovered heat consists
mainly of waste heat. Fuel
consumption is avoided by
making use of surplus heat.

8. The use of renewables accelerated
Cold winter raised the need for fuels
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• In municipalities where district
heating is provided
– 75 per cent of networks heat
comes from renewable fuels or
recovered heat
• Renewable fuels used in producing
district heat are e.g. forest
fuelwood, industrial wood residue,
bio share of municipal waste,
biogas, biofuel oil.
Use of renewables in the production of district
heat and cogeneration

9. The amount of recovered heat in district heating
has more than tripled since year 2010
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• Recovered heat consists mainly of
waste heat and heat pumps
• Fuel consumption can be avoided by
making use of surplus heat. Heat can
be recovered from data centers,
industrial processes, flue gases,
sewage water etc.

10. District heat emissions grew from
last year – the trend of emissions
is strongly declining

11. District heating increased by 18 % due to cold
winter
• CO2-emissions from district
heat production in 2021 were
4,8 Million tons and increased
by 28 % from the previous
year
• The long-term trend of
emissions is declining
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11

12. Specific CO2-emissions from district heat production
have decreased by 38 % during the last ten years
27.1.2022
12
• Specific emissions from district
heat production in 2021 were
123 gCO2/kWh(*, which
• Increased by 12 % from
the previous year
• Decreased by 38 % during
the last ten years
*) Fuels used in combined heat and power
production were allocated according to the benefit
allocation method
Source:
Statistics Finland (2000...2019)
Finnish E …

13. The trend of CO2-emissions from ’ energy
production is declining
• CO2-emissions of electricity
and district heating
production 10,3 Mt in year
2021
• Emissions have declined 69 %
compared to 2000s highest
emission year 2003
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14. EU’
allowance prices
• Increases the
production costs of
energy produced with
fossil fuels.
• High emission cost
increases the
competitiveness of
emission-free district
heat
27.1.2022
14
Souce: https://sandbag.be/index.php/carbon-price-viewer/

15. Cost-effect of ETS and taxes increase the price of
fossil fuels and peat
27.1.2022
15
E

16. District heat is the most common
source of space heating in Finland

17. Market share of space heating 2020
Residential, commercial and public buildings
27.1.2022
17
Heat pump: includes the electricity
consumption of heat pumps
Electricity: includes the electricity
consumption of heat distribution
equipment and electric sauna stoves
Wood: includes the wood used by
sauna stoves
Source: Statistics Finland

18. District heating is the most popular method of
heating in new buildings
• Market share of district heating in
2020-2021
• All buildings 51 %
• Residential buildings 57 %
– Blocks of flats 85 %
– Detached and semi-detached houses
16 %
• Office buildings 80 %
• Public service buildings 69 %
• Commercial buildings 57 %
• Industrial and mining and quarrying
buildings 48 %
• Warehouses 42 %
27.1.2022
Source: Statistics Finland, Granted building permits (heated cubic volume)
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19. Main heating method in new buildings
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Source: Statistics Finland, Granted building permits (heated cubic
volume)

20. District cooling is cost-effective
and environmentally friendly

21. District cooling business continues to expand
sales increased by 17 % from the previous year
27.1.2022
21
• District cooling sales
increased by 17 % from the
previous year
• Connected load increased by
8 %
Energy companies which sold district
cooling 2021:
• Etelä-Savon Energia Oy
• Fortum Power and Heat Oy
• Helen Oy
• Jyväskylän Energia Oy
• Kuopion Energia Oy
• Lahti Energia Oy
• Lempäälän Lämpö Oy
• Pori Energia Oy
• Tampereen Sähkölaitos Oy
• Turku Energia Oy
• Vierumäen Infra Oy

22. Nearly 90% of district cooling energy is produced from
energy sources that would otherwise be unutilized
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• Same heat pumps often produce
both heat and cooling energy
– the cooling water is cooled and the
district heating water is warmed up
in the same process.
• District cooling also utilizes the
ambient energy from sea, lakes and
rivers as well as outdoor air
whenever the temperature is low
enough.