1. No category

Wind Power –
New Opportunities for New
Energy Marget Players in
Finland
Jari Suominen
Jari.suominen(at)tuuliwatti.fi
www.tuuliwatti.fi
Statistics …
2020 Scenarios
Lead markets
Biggest EU
markets:
Cumulative:
n°1 Germany
n°2 Spain
n°3 Italy
n°4 France
n°5 United Kingdom
n°6 Portugal
n°7 Denmark
n°8 Sweden
n°9 Ireland
…
n°18 Finland
Annual (2009):
n°1 Spain
(2.459 MW)
n°2 Germany
(1.917 MW)
n°3 Italy
(1.114 MW)
n°4 France
(1.088 MW)
n°5 United Kingdom (1.077 MW)
n°6 Portugal
(673 MW)
n°7 Sweden
(512 MW)
n°8 Denmark
(334 MW)
n°9 Ireland
(233 MW)
…
n°19 Finland
(4 MW)
n°1
Germany
n°2
Spain
n°3
United Kingdom
n°4
France
n°5
Italy
n°6
Poland
n°7
The Netherlands
n°8
Sweden
n°9
Portugal
n°10 Greece
n°11 Ireland
Denmark
…
n°18 Finland
(49.000 – 52.000 MW)
(39.000 – 42.500 MW)
(26.000 – 34.000 MW)
(23.000 – 26.000 MW)
(15.500 – 18.000 MW)
(10.500 – 12.500 MW)
(9.500 – 11.400 MW)
(9.000 – 11.000 MW)
(7.500 – 9.000 MW)
(6.500 – 8.500 MW)
(6.000 – 7.000 MW)
(6.000 – 6.500 MW)
(1.900 – 3000 MW)
Source: EWEA
Content
• Feed-in Tariff – Strengths and Weaknesses
• Investment Barriers and Opportunities
• TuuliWatti Business Case
Content
• Feed-in Tariff – Strengths and Weaknesses
• Investment Barriers and Opportunities
• TuuliWatti Business Case
The law proposal for feed-in tariff system
• The government has given the law proposal to parliament in
17.9.2010
• Will be handled in cabinets first, then voted in parliament
• Fixed quaranteed price, 83,5 €/MWh for 12 years
• Until the end of 2015 higher level 105,3 € / MWh, max
3 years
• New turbines, which have been installed before
1.1.2009 included
• Minimum size 500 kW
• Funding from the governmental budget
• An additional tariff or other subsidy system may be
introduced later for off-shore wind enabling at least demo
projects (< 100 MW)
• Starts in 2011
Guaranteed market price
Market Price
Average market price
Guaranteed price
• Guaranteed price
• Premium is paid
quarterly
• Minimum level
30 €/MWh
• Producer is
responsible for
the sale of
electricity to the
market
• Producer is
responsible for
the electricity
balance and it’s
costs
Strengths and Weaknesses
276
261
Asennettu kapasiteetti (MW)
Tuotanto (GWh)
Tuotantoindeksi, IL (%)
188
168
153
120
92
77 70
63
49
142
•
•
•
2009
2008
2007
2006
1998
•
86
2005
1997
•
38
82 82
2004
1996
•
•
38
52
2003
17
2002
12
2001
7
2000
6
39 43
1999
5
1995
7
1994
4
1993
2
11 11 17
147
109
24
1992
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
0
Investment support system was not efficient
System is technology and location neutral, forcing investments to most cost
efficient locations
Cost efficient way to reduce fossil energy use in electricity production and
decreases electricity costs more than costs as overall support
Support costs likely to decrease/disappear during the system life time due
to the increase in electricity market prices
The level is high enough for onshore projects, but not for offshore or inland
projects
Risk of low electricity prices?
When will the target be reached?
Content
• Feed-in Tariff – Strengths and Weaknesses
• Investment Barriers and Opportunities
• TuuliWatti Business Case
New Wind Atlas
Today:
Wind Atlas 1991
61 observation points
191 weather
stations
New Wind Atlas:
54 200 points á 2,5x2,5 km2
+ 867 000 points á 250x250m (onshore)
Developing a wind farm in Finland
• Find the right area
• Wind Atlas
• National parks etc close by?
• Where is the closest grid connection
point?
• Negotiations with land owners
• Negotiations with the TSO (Fingrid)
• Negotiations with the authorities
• Wind speed measurements
• Radar effects
• Regional land use plan (Regional Council)
• Local master plan (Municipality)
• Local detailed plan (Municipality)
• New law proposal to simplify the process
TuuliWatti Oy - General principles
• To build cost efficient wind electricity
production to Finland
• Sustainable production which takes
into account social and environmental
values of potential locations
• Focusing on projects, which are either
linked to the nearby coast line onshore
windfarms or integrated into existing
infrastructure like harbours, industrial
areas etc.
Porin tahkoluoto – existing infrastructure
Flat forest areas typical in Finland
Barriers and Opportunities
•
•
•
•
•
•
Large country with few people and long
coastline
With the feed-in tariff, new Wind Atlas and
the projects published so far, there will be
high investments in the wind sector in
Finland before 2020
Finnish wind power industry has the
possibility to multiply the turnover by 2020
Wind energy sector in Finland might
employ from 12 000 to 30 000 persons
before 2020
One of the new opening markets
Fare amount of natural limitations
• Coastline used for time off activities
• Birds and other sustainability issues
•
•
New for everybody – processes not
settled
Cost efficient feed-in tariff system
Content
• Feed-in Tariff – Strengths and Weaknesses
• Investment Barriers and Opportunities
• TuuliWatti Business Case
TuuliWatti Oy
•
•
•
TuuliWatti Oy is an industrial
windpower producer jointly
owned by S-Voima Oy and
St1 Oy, founded in 2009
TuuliWatti Oy’s purpose is to
produce cost efficient
electricity to its owners
Business targets:
– To build 10-20% of Finland’s
official wind energy
production target of
~2500MW by the year 2020
– In the long term to own and
operate 240-1000MW wind
electricity capacity
•
•
•
•
•
Owns lease agreements to
500 individual turbine sites
Develops wind farms
Owns and operates wind
electricity production
First wind turbine (3MW) in
Pori Tahkoluoto since 2009
10 windfarm development
projects on the West Coast of
Finland
Owners and company structure
S-Voima Oy
• Purpose to produce
wind electricity as a
part of its energy
portfolio to its own
consumption
St1 Oy
• Purpose to produce
wind energy as a part
of its energy offering
portfolio to its end user
customers
S-Voima and the S-Group in brief
•
•
•
•
•
S-Voima Oy is owned by 22 regional co-operatives
and SOK
The 22 regional co-operatives and SOK
Corporation constitute the S Group (SOK is owned
by the co-ops)
Mission:
Provide services and benefits to members and
other customers
Key figures:
– Retail sales 2009: EUR 11,687 million (-1,2 %)
– Profit before exceptional items: EUR 270
million
– 1,598 outlets
– 37,764 employees
Electricity consumption 1 100 GWh
– Strategic goals are to increase the energy
efficiency of all operations and to invest in the
use of CO2 free energy
St1-Group in brief
•
•
•
•
St1 was founded in 1995 to operate in oil product
wholesale business
• St1 service station chain (est. 1997) part of the
company since 2000
• ExxonMobil Finnish Affiliate oy Esso ab was
acquired in 2007
• the company was named St1 Oy
Key figures in 2009
• Number of employees 160
• Turnover appr. 1.2 billion Euros
• Market shares
• Petrol 13.5%
• Diesel 9.2%
• Light fuel oil 11.5%
Areas of business
• Petroleum retailing at ~ 640 sites in
• Finland, Sweden, Norway and Poland
• CO2-aware energy products and services
• Such as Refuel RE85 High blend ethanol,
which cuts transport-related fossil CO2
emissions by up to 80%
Associated companies
• North European Oil Trade Oy (NEOT Oy)/ SGroup
• TuuliWatti Oy/ S-Voima Oy
• St1 Avifuels Oy/ StatoilHydro ASA
TuuliWatti investment plans
Development started 2009 :
• Tervola, Varevaara 20-30 MW
• Ii, Olhava 18-24 MW
• Simo, 15-18 MW
•
•
•
Pori, Peittoo 28-36 MW
Salo/Raasepori, Näsenkartano 30-50 MW
Merikarvia, Trolssi 80-105 MW
– Co-operation TW, HT, EPV
Development started 2010 :
•
Raahe, Haapajoki 25-30 MW + 25-30 MW
•
Raahe, Piehinki Sarvankangas 80-100 MW
•
Kalajoki, Mustilankangas 80-100 MW
•
Luvia, Martinpalo 50-80 MW
– Co-operation TW, PE
Building 2011
(2012)
Building 2012
(2013)
Building
2013 Jari Suominen
jari.suominen(at)tuuliwatti.fi
Puh. +358 50 5956 780
Back-ups
4.6.2010 klo 05:48
TW Pori tuotanto
klo 09:06
TW Pori tuotanto
70000
Suomen
tuulivoimatavoite 6
TWh, 2.000+ MW
1000
900
60000
800
700
40000
3 MW
30000
1.000 kWh
kWh
50000
600
500
3 MW
Sähkön hinnan nousu
145% kahdessa
tunnissa
400
300
20000
200
10000
100
0
0
1.6.2010
2.6.2010
3.6.2010
4.6.2010
5.6.2010
6.6.2010
7.6.2010
8.6.2010
11/2009
12/2009
Lähde: http://www.fingrid.fi/portal/suomeksi/sahkomarkkinat/voimajarjestelman_tila/
1/2010
2/2010
3/2010
4/2010
5/2010
Useat päällekkäiset tekijät nostavat sähkön
hankintakustannuksia
” Näkymä 2020 ”
100+ €/MWh
Sähkön hinta, alv0%
(€/MWh)
Uusiutuvan energian
tukeminen
Sähkövero
” Tilanne 2009 ”
56 €/MWh
+ 80+ %
EU sähkömarkkinaintegraatio
Sähkön myynti
Sähkövero
Sähkön siirto
Sähkön myynti
Päästökauppa
Marginaalituotannon
muuttuvat kustannukset
Sähkön siirto
Päästökauppa
Sähköenergian
markkinahinta
Marginaalituotannon
muuttuvat kustannukset
Oletukset ”Näkymä 2020” takana:
-Sähköverot hallituksen kehysriihen mukaisena v. 2011 taso
- Marginaalituotantona hiililauhde, hiili 70+ $/ton
- Päästöoikeuden hinta 2020: 40+ €/ton,CO2
- EU:n sähkömarkkinaintegraatio; lähemmäksi Saksan tukkuhintatasoa
- Uusiutuvan energian tukijärjestelmät vaikutus ~1,5 €/MWh
- Kantaverkkoinvestoinnit ja integraatiokehityksen tarvitsemat yhteydet Eurooppaan, siirtomaksut +4% / vuosi
Lähde: Suomen ElFi Oy
Tuulivoima laskee sähkön markkinahintaa
-Tuen tarve tuulisähkölle nykyisen syöttötariffin tasolla häviää v.2020 mennessä (takuuhinta 83.5 €/MWh vastaa sähkön hintaa)
- Pöyryn EWEA:lle tekemässä selvityksessä tuulivoiman Merit Order Effectin on todettu vaikuttavan 3-23€/MWh sähkön hintaan laskevasti
- Suomen sähkönkulutus v. 2020 noin 100 TWh -> 1 €/MWh = noin 100 milj. €
Muuttuvat
tuotantokustannukset
(€/MWh)
Vesivoima (keskivesivuosi)
200
Öljylauhde
Tuonti Venäjä
Ydinvoima
100
Tuonti Saksa
Systeemihinta
300
CHP
Hiililauhde
Tuuli
v. 2020 tuulivoima laskee sähkön
markkinahintaa Suomessa
~5 €/MWh = ~500 milj. €
Kaasuturbiinit
Kysyntä
Tuotantokyky
(TWh/a)
400
Lähde: Suomen ElFi Oy
17.11.2010
26
Spatial planning
• Regional land use plan
(Regional Council)
• Local master plan
(Municipality)
• Local detailed plan
(Municipality)
• New law proposal to
simplify the process
The permitting process
• Always required
• Compliance with flight security (>30 m)
• Permit in accordance with the Electricity Market Act (>
110kV)
• Redemption right on the land needed for new electricity
transmission lines
• Building permit
• Always in the off-shore farms + if the turbines have
impacts on water system -> permit in accordance with
the Water Act
• Environmental permit, if project causes inconvenience
to neighbors (noise or shimmer)
• (Invest in Finland + Finnish Environment Institute)