Energy Security Impacts of Decreasing CHP Capacity in Finland

Finland, as part of the Nordic electricity market, is experiencing an era of low electricity market prices. This has practically removed all condensing power capacity from the electricity market. The Finnish combined heat and power (CHP) capacity is facing a similar trend. Some industry experts argue that the described trend could induce serious energy security issues. In this paper, we analyse a scenario where the average electricity spot price remains under 30 /MWh throughout the 2020s and energy use of coal is phased out by 2030, resulting in a notable decrease in CHP capacity. We assess the energy security implications in the scenario on a national and multi-national level. Additionally, we present a case study of Helsinki to give examples of the identified energy security issues on a city level. The results provide policy makers insight in decision making regarding the operating environment of CHP production in Finland.