Solar PV in Finland Jero Ahola, 7.4.2019 email: jero.ahola@lut.fi Twitter: @JeroAhola
Finland and Lappeenranta Finland: • Location: between latitudes of 60° −70 ° • Area: 338 435 km 2 • Population: 5.5 M • 19 M people live totally above parallel latitudes of 60° from that in Finland 28%. Source: European Union , Joint Research Centre , (http://re.jrc.ec.europa.e u/pvgis/cmaps/eur.htm) April 7, 2019 Jero Ahola 2
Status of solar PV in Finland (end 2018) • Estimate ~50-60 MW new grid-connected solar PV capacity installed in 2018 . Official numbers will be provided Energy Authority in June 2019 • In total (end of 2018) ~130 MW cumulative grid-connected capacity. • The number of PV plants is probably 10 000 – 15 000 • No big PV utility-scale plants yet, currently the largest one 4,4 MW in Nurmo (will be 6 MW) • All installations are practically for self-consumption. However solar PV is in Finland the second least cost option for new power generation after wind power • Economically profitable without subsidies for retail stores, public buildings, etc. However, the maximum plant size is limited to around 900 kW due to electricity tax regulation. • Subsidies: • For companies and organisations it is possible to apply for 20% investment subsidy for total costs of PV systems from Ministry of Employment and the Economy • For agricultural use it is possible to apply for 40% investment subsidy for PV systems from Agency of Rural Affairs • Individuals are eligible to get a tax credit (50% of the total work costs, maximum 2400 € /a/person) for the installation work of the PV system (installations to existing buildings only). For residential PV systems this corresponds to ~10-15% investment subsidy April 7, 2019 Jero Ahola 3
Development of PV capacity in Finland Finland 140 * 2018 Cumulative capacity MWp numbers are 120 based on 100 estimates ** includes ~10 80 MW of off-grid 60 capacity mainly located 40 at summer 20 cottages 0 2006200720082009201020112012201320142015201620172018 Year April 7, 2019 Jero Ahola 4
Typical PV system turnkey prices in Finland in late 2018 (VAT 0%) Ca Cate tego gory/Size Typical applica cati tions and b brief d details Current p Cu prices [€/ W] V VAT 0% Typically, PV systems that are installed in boats, OFF-GRID Up to 1 kW (SHS) caravans, summer cottages and include lead-acid 5 batteries. OFF-GRID > 10 MW scale No 10 MW-scale off-grid plants in Finland. No plants Grid-connected Rooftop up Systems installed in grid-connected houses for to 5-10 kW (residential self-consumption. These plants are typically roof- 1.05-1.9 BAPV) mounted. Grid-connected Rooftop Systems installed to produce electricity for the from 10 to 250 kW self-consumption of commercial buildings, offices 0.75-1.05 (commercial BAPV) and public buildings. Grid-connected Rooftop Systems installed to produce electricity for self- above 250 kW (industrial consumption in industrial sites or large 0.65-0.75 BAPV) commercial buildings. Utility-scale PV plants that generate electricity to Grid-connected Ground- be sold in electricity markets. No > 10 MW plants 0.55-0.65 mounted above 10 MW installed in Finland yet. The numbers represent the estimated price window. April 7, 2019 Jero Ahola 5
Nurmon Aurinko, 6 MW solar PV plant in Nurmo • Located at Atria Oy company production site in Nurmo • Different installations, however, the majority of modules are as a ground- installation • More information: https://www.nurmonaurinko.fi/english April 7, 2019 Jero Ahola 6
Porin Puuvilla, 601 kW solar PV in Pori • Rooftop installation at retail shopping center in Pori • Capacity 601 kW Photo from NAPS Solar Systems Oy April 7, 2019 Jero Ahola 7
Summary • Solar PV growing in Finland with very mild economic subsidies • Based on estimates in 2018 50-60 MW of new capacity installed, leading to cumulative capacity of ~130 MW in 2018. • Solar PV is the second least cost new power source after the wind power in Finland. • Significant progress since 2012 • Grid connection of micro-generation straightforward (50 <kVA) • Practically all energy companies buying micro-generated electricity (at wholesale market price) • No electricity tax for self-consumption PV plants, if S N < 100 kVA or E a < 800 MWh/a • No building permits for rooftops required in several cities • Public awareness of solar PV has increased significantly. • PV capacity is build for self-consumption • Companies, farms, public organisations, etc. Economically profitable even without subsidies • Are able to use all electricity and eligible to apply investment subsidy (~20-40 % of total costs) • Household PV in Finland: • Problems still with the current electricity metering: Due to measurement principle prosumer typically both sells and buys electricity within the same hour. Price of sold electricity 1/3 of the cost of purchase electricity. • The self-consumption of majority of produced electricity may be difficult due to mismatch of production and consumption • However, the decision of an individual to buy a solar PV system is usually not done based on other reasons than economic ones. April 7, 2019 Jero Ahola 8
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