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Agricultural Policy and Promotion of Renewable Energy Sources in Finland

Agricultural Policy and Promotion of Renewable Energy Sources in Finland. International Conference ’Contribution of Agriculture to Energy Production’ Tallinn 7 October 2005 Taina Vesanto MINISTRY OF AGRICULTURE AND FORESTRY. Background. National Climate Strategy 2001 (revision under way)

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Agricultural Policy and Promotion of Renewable Energy Sources in Finland

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  1. Agricultural Policy and Promotion of Renewable Energy Sources in Finland International Conference ’Contribution of Agriculture to Energy Production’ Tallinn 7 October 2005 Taina Vesanto MINISTRY OF AGRICULTURE AND FORESTRY

  2. Background • National Climate Strategy 2001 (revision under way) => National Energy and Climate Strategy 2005 • Action Plan for Renewable Energy Sources 1999 and 2002 (integrated into the National Climate Strategy of 2001)

  3. Action Plan for Renewable Energy Sources 2002 Aims: • Renewable energy is competitive on the open market • By 2010 the use of renewable energy should be increased by about 30% from the year 2001 • By 2025 the renewable energy sources should be used about 2/3 more than at present

  4. Action Plan for Renewable Energy Sources 2002 Central actions: • Development and commercialisation of new technology and financial steering instruments (energy taxation, investment aid and subsidies) • More information, education and training

  5. Committee on arable biomass, biofuels for transportation and biogas • Drafts proposals on the implementation of the measures of the Action Plan for Renewable Energy Sources in its own sector • As one of the measures, drafts plans on promoting the production and use of agroenergy • Follows national and international trends in the sector • Monitors the implementation of the proposed measures and achievement of the objectives • Engages in broad cooperation with relevant interest groups and hears various experts in the field • The term of the Committee ends on 31 December 2006 • First report available (in Finnish, Työryhmäraportit 2004:11 http://www.mmm.fi/julkaisut/tyoryhmamuistiot/index.html

  6. Agro - bioenergy Reed Canary Grass (Phalaris arundinaceae) • in 2004 total cultivation area about 4 000 hectares • in 2005 total cultivation area about 10 000 hectares • objective for 2015 is 100 000 hectares

  7. The common agricultural policy of the EU • Reform into force in the EU from the beginning of 2005 • In Finland most of the reforms (e.g. single payments) into force from the beginning of 2006 • Aid for energy crops from the beginning of 2004 • One main objective of the reform is to decouple EU support from production and thus promote the steering of production according to markets

  8. Framework conditions for increasing the cultivated area • utilisation capacity of power plants (at present 3.38 – 3.55 TWh) • distance from arable land to power plant (max. 100 km, usually 50-70 km) => theoretical maximum area 160 000 hectares • extending tax support to arable biomass • additional costs to power plants due to • transportation • storage • processing (e.g. pelleting, crushing)

  9. Other biomass • Other plants and plant parts (e.g. straw, hemp, flax) • Burning of cereal ?? • Energy willow

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