Importance of electricity in Finland

Energy is an important production factor for industry and an indispensable commodity for households. Energy is required for transportation, heating and as the propulsion for machines and equipment.

The importance of energy in Finland is emphasized because of the industrial structure, cold climate and long distances. A considerable portion of Finnish industrial output is dependent on the domestic raw-material base. Processing this into products for export requires a large amount of energy. The forest industry and refining of metals hold a key position.

A significant and constantly growing proportion of energy is consumed in the form of electricity. In production processes, electricity is replacing fuels because of its energy-efficient adjustability and environmental friendliness. Industry uses more than half the electricity consumed in Finland; about 54% in 2006. A major part of the industrial electricity is used for producing export products.

Devices operating on electricity in households make everyday life easier, and the amount of equipment is on the rise with new appliances. The number of households is also on the increase with the decrease in the size of the family and increase in the population. On the other hand, the growth in electricity consumption is being slowed down by the much better energy efficiency of new household devices.