Finland
PV technology status and prospects
Leena Grandell, Motiva Oy 		home > annual reports > annual report 2001 >

Fig. 1 - Villa 2000, building integrated PV elements (2,4 kWp) by Rautaruukki Oy.

General Framework

During the past decade, the main emphasis on the promotion of photovoltaics in Finland has been on research and development. However, this changed when the Ministry of Trade and Industry launched an Action Plan for Renewable Energy Sources in 1999 in which more emphasis was placed on the enhancement of domestic market development. The Action Plan is one crucial part of the National Climate Strategy, which has been formulated to achieve the goals of greenhouse gas reductions set for Finland by the Kyoto Protocol.

The main actors in the photovoltaic sector in Finland are comprised of several companies, both supplier and consultant companies, a number of research institutes, and two associations. Within the government, the Ministry of Trade and Industry has the main responsibility for enhancing renewable energy sources, including photovoltaics, but also the Ministry of Environment acts in the housing sector. Motiva, the Energy Information Centre for Energy Efficiency and Renewable Energy Sources has also an active role in the enhancement of the market. One of the key disincentives to growth in the PV markets is lack of proper information. A fundamental belief is that the northern climate would form a severe hindrance to the utilization of solar energy. However, the growing number of demonstrations sites, as well as the fairly widespread use of photovoltaics on summer cottages has slowly overcome these attitudes
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National Programme

The Action Plan for Renewable Energy Sources sets objectives for the volume of energy generated by renewable sources in 2010, and in addition, a prognosis on the development until 2025 is included. The relative increase of photovoltaic markets sought until 2010 is significant even though its absolute volume is still modest.

The ambitious goal set by the Action Plan for Renewable Energy until 2010 is to increase the production by 50%, when compared to production in 1995. A further goal is to double the use of renewable energy sources by the year 2025. This increase is, to a large degree, foreseen to rely on bioenergy and hydropower, but ambitious goals have been set for photovoltaics as well. The objective for installed photovoltaic capacity in 2010 is 40 MWp, meaning a 20 fold increase when compared with the 1998 situation. The prognosis for 2025 is 500 MWp. Thus, the main emphasis in the coming decade is in creating the needed infrastructure (awareness, information dissemination, export, industrial activities) whereas volume effects are sought later. The impact of photovoltaics on the total environmental effects of the Action Plan is assessed to be less than 1% for 2010.

Following the launch of the Action Plan, a thorough investigation of the concrete steps and actions in order to reach the ambitious goals set for photovoltaics has been conducted. The main emphasis is placed on photovoltaics in buildings, but also on stand-alone systems. Applications for developing countries are included.
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Fig. 2 - Helsinki University of Technology, Department of Electrical Engineering. Solar panels mounted on shading elements forming a total of 60 m2 panel area and 7 kWp peak power.

Research and Development

Research and development work on photovoltaics is carried out by a number of institutes, mainly Helsinki University of Technology, Tampere University of Technology and Technical Research Centre of Finland. Also several companies, such as Naps Ltd and Rautaruukki Oy, are active in the field.

The "Photovoltaics in Finland” programme managed by Tekes, Technology Development Centre, focused on industrial solar cell production with the intention to provide technological requisites for inducing industrial production. Both research institutes as well as industry participated in the programme. The main emphasis was on solar cells based on crystalline silicon. The program ended in 2000. Since then, public research funds are being dealt on by project basis. During 2001, a couple of research institutes and companies received funding mainly for development of individual components as well as optimisation on the system level. Helsinki University of Technology, being the main actor in the research field, concentrates on system development, research on ageing phenomenon of solar cells as well as new materials.
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Implementation

"Green electricity" has been introduced to the electricity markets and utilities are increasingly interested in demonstrating building integrated PV systems as part of their environmentally friendly image. This has stimulated private consumer interest to PV power as well. Preliminary interest has also been shown for an ESCO type financing approach for PV installations.

Until the end of 2001, investment subsidies (up to 30%) have been only available to communities, organizations and enterprises. However, this will presumably change during 2002. The subsidy level will rise up to 40%; which will be comparable to wind energy investments in Finland. Another change sought in the near future is that subsidies will be made available to private persons. This will very likely in the first state comprise only new buildings, but later, investments made at renovation sites, as well.
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Industry Status

The main industrial player is Naps Ltd with its business unit Naps Systems Oy. Naps markets different PV applications and its market share in Europe is approximately 10%. About 10 companies are active on the system level.

One new product launched in the market in 2001 was the rooftop integration of 64 Wp and 128 Wp PV modules by Rautaruukki Oy. The product was demonstrated in 2000 at the Tuusula housing exhibition and is based on an innovation dealing with the integration of the modules with the remaining roof structures.
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Market Development

Photovoltaic markets in Finland can be divided into three main segments: The domestic markets are still dominated by small solar home systems for vacation houses, typically 50-100 Wp in size. The estimated potential is some 120 000 units due to the high number of summer cottages. Examples of larger applications in remote areas are telecommunication base stations or weather stations. Also, the Finnish Coast Guard operates some 20 larger stand-alone hybrid systems. During recent years, building integrated applications have formed a new important market segment. A number of PV systems in the built environment exist, the largest of them being a 39 kWp system mounted on the rooftop of a supermarket in Lielahti, Tampere. A new larger scale system is planned to be mounted at Ekoviikki, an environmentally friendly housing area with emphasis on solar energy utilization.
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Future Outlook

The photovoltaic markets in Finland will continue to concentrate on small scale consumer applications but building integrated systems are becoming a new important market segment. The subsidy level will rise from the present 30% to 40% in 2002 and subsidies will very likely be made available to private persons. During the coming years the enhancement of photovoltaics markets will emphasize creating the needed infrastructure including information activities, education, and industrial activities.
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Table 1. Finnish PV systems 2001 - Cumulative installed capacity
Market segment Cumulative installed capacity (kWp)
Solar home systems 2 392
Stand-alone systems 249
Grid-connected (utility) 30
Grid-connected (rooftop) 77
Total 2 748
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Further reading about Finland

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