Title:
Factors Behind the Development of Forest Chips Use and Price in Finland
Author(s):
Ranta, T., Karhunen, A., Laihanen, M.
Document(s):
Paper
Poster
Abstract:
The use of forest chips has almost tripled since 2007 and reached the level of 8.0 million m3 by 2015 in Finland, despite declining use in 2014-2015. The target is to further increase the use of forest chips to the level of 13.5 million m3, i.e. 27 TWh, by 2020. During the period 2007-2015, the average price of forest chips has increased by 66% from 12.66 €/MWh to 21.03 €/MWh. The use has almost tripled (176%) during the same period. In this study, factors were analysed that had an effect on the development of the use of forest chips and mill gate price from 2007 up to 2015 in Finland. Both supply and demand factors were evaluated. The competitiveness of forest chips use was the result of different incentives, price and taxation of competing fuels as peat and fossil fuels and the price of emission allowances. During this period, both incentives and taxation levels were updated several times to implement the national objective set by the EU on increasing the utilisation of renewable energy sources. The future demand of forest chips is dependent on the price development of emission allowances and electricity. Their current low price has become a significant threat towards CHP-plant investment activity. Policy regulation is needed to enable bioenergy CHP investments, which will also secure the energy infrastructure and energy security in the future in Finland.
Keywords:
economics, policy, wood chips, national, policies, supply, market
Topic:
Biomass Policies, Markets and Sustainability
Subtopic:
Biomass strategies and policies
Event:
24th European Biomass Conference and Exhibition
Session:
4AV.3.23
Pages:
1555 - 1563
ISBN:
978-88-89407-165
Paper DOI:
10.5071/24thEUBCE2016-4AV.3.23
Price:
FREE
