ENTSOG GRIP BEMIP 2014-2023 / Main Report

PLAYERS

Gasum is the sole importer and wholesaler on the natural gas market in Finland. There are 23 local distribution companies in Finland. Less than 5% of the natural gas is supplied by the local distribution companies. The rest is supplied directly from the transmission system. Gasum is the only TSO in Finland and has been ap- pointed system responsible of the Finnish natural gas system. Gasum is a vertically integrated company acting as a wholesaler of gas in addition to the TSO activities. Unbundling of Gasum will be performed when the right to derogate from it expires.

ENERGY MIX

Finland has a rather diversified energy mix which can be seen from Figure 2.1.

25 %

20

15

10

5

0

Hydro & wind power

Others

Oil

Wood fuels

Nuclear energy

Natural gas

Coal

Peat

Net imports of energy

2012

2011

Figure 2.1: Total energy consumption by sources, 2012

SUPPLY / DEMAND

The natural gas supply in Finland is based on import from Russia. Sufficient access to natural gas is ensured on the basis of a supply contract that is valid until 2026. The structure of the Finnish natural gas market differs from that of the common European market, where the supply of natural gas to private households and other small consumers plays an important role. In Finland, the bulk of natural gas is supplied to major natural gas users, i.e. industrial enterprises, power plants and district heating plants. Local supply of natural gas accounts for only 5% of the total supply. In past years, natural gas has accounted for around 8 – 9% of Finland’s overall energy consumption. Natural gas plays a key role in the combined production of electricity and heat by industry and the power plants of communities. About 2/3 of all natural gas consumed in Finland is used in the co-generation of electricity and heat. Other important uses are the production district heat as well as various industrial processes and feed stock. Natural gas sales are affected by weather conditions, price development in the electricity and fuel markets, and industrial utilization rate.

Baltic Energy Market Interconnection Plan GRIP 2014–2023 | 13