Energy year 2013

District Heat

30.9.2014 Wilhelms

District heat in Finland year 2013

Heat sales (incl. taxes) 2,31 mrd €

Sold heat energy 31,7 TWh

Average price of dh (incl. taxes) 7,27 c/kWh

Inhabitants in district heated apartments 2,73 mill.

Market share of district heat 46 %

30.9.2014 Wilhelms

Market share of space heating year 2012

Heat pump: includes the electricity consumption of heat pumps Electricity: includes the electricity consumption of heat distribution equipment and electric sauna stoves Wood: includes the wood used by sauna stoves

district heat46,0 %

electricity18,6 %

heat pump11,6 %

light fuel oil8,2 %

wood13,1 %

heavy fuel oil1,4 %

other1,1 %

Source: Statistics Finland

30.9.2014 Wilhelms

District heat consumption and connected heat load of the customers

0

5

10

15

20

25

30

35

0

5

10

15

20

25

30

35

1976 1980 1984 1988 1992 1996 2000 2004 2008 2012

GWTWh/a

Heat consumption TWh/a Connected heat load GW

30.9.2014 Wilhelms

Temperature corrected heat consumption

0

5

10

15

20

25

30

35

40

1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010

TWh

Heat consumption, TWh Temperature corrected heat consumption, TWh

30.9.2014 Wilhelms

District heat in Finland year 2013

Number of district heating customers 140 900

Number of dwelling house customers 111 900; 1,3 mill. dwellings and 2,73 mill. inhabitants

Year 2013 – New district heating customers 3 200 pc.

• 78 % of the connected building volume were new buildings, rest were changing their means of space heating

– District heating in new construction production • Detached houses 14 % • Building blocks 96 % • Office buildings 93 % • School buildings 82 % • Commercial buildings 75 % • Industrial and storage buildings 39 %

30.9.2014 Wilhelms

New customers connected to district heating and construction of new pipelines

0

100

200

300

400

500

600

700

0

1000

2000

3000

4000

5000

6000

7000

1981 1985 1989 1993 1997 2001 2005 2009 2013

km

New customers Construction of pipes

Number of customers

30.9.2014 Wilhelms

Number of customers and length of networks

0

2000

4000

6000

8000

10000

12000

14000

16000

0

20000

40000

60000

80000

100000

120000

140000

160000

1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010

kmpc.

Number of customers pc. Total length of networks km

30.9.2014 Wilhelms

Specific heat consumption in district heated buildings incl. energy for heating hot tap water

0

50

100

150

200

250

0

10

20

30

40

50

60

70

80

1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010

kWh/m2,akWh/m3,a

30.9.2014 Wilhelms

District heat production year 2013 34,9 TWh

cogenerated heat72,7 %

separate heat27,3 %

30.9.2014 Wilhelms

District heat production

72 % 72 % 72 % 74 % 76 %77 % 79 % 77 % 75 % 76 %

77 % 75 % 75 % 76 % 73 % 75 % 74 % 75 % 71 %71 %

73 % 69 % 73 %

0

5

10

15

20

25

30

35

40

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

TWh/a

cogenerated heat

30.9.2014 Wilhelms

Energy savings due to CHP

Actual fuel consumption

0

10

20

30

40

50

60

70

80

90

100

1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010

TWh/a

Fuel consumption without CHP

savings due to CHP

30.9.2014 Wilhelms

Savings in carbon dioxide emissions due to CHP

CO2-emissions in the production of district heat and cogenerated electricity

0

5

10

15

20

25

1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010

million t CO2

savings due to CHP

30.9.2014 Wilhelms

Fuels for district heat and CHP 56,8 TWh in Finland year 2013

Natural gas25,8 %

Coal26,0 %

Peat13,3 %

Wood, other bio27,8 % Industrial reaction

heat, heat pumps2,3 %

Oil2,1 %

Others2,7 % Renewable 28 %

Carbon dioxide free 30 %

Domestic 45 %

30.9.2014 Wilhelms

Fuels for separate district heat production 11,0 TWh in Finland year 2013

Natural gas26,2 %

Wood26,8 %

Other biofuels6,7 %

Industrial reaction heat, heat pumps

10,7 %

Oil9,4 % Peat

10,8 %

Coal5,6 %

Others 3,8 %

Renewable 33 %

Carbon dioxide free 44 %

Domestic 56 %

30.9.2014 Wilhelms

Fuels for district heat and cogeneration

0%

20%

40%

60%

80%

100%

1976 1980 1984 1988 1992 1996 2000 2004 2008 2012

oil

coal

natural gas

peat

other

bio

30.9.2014 Wilhelms

Fuels for district heat and cogeneration

0 % 20 % 40 % 60 % 80 % 100 %

UusimaaVarsinais-Suomi

SatakuntaKanta-Häme

PirkanmaaPäijät-Häme

KymenlaaksoEtelä-Karjala

Etelä-SavoPohjois-Savo

Pohjois-KarjalaKeski-Suomi

Keski-PohjanmaaEtelä-Pohjanmaa

PohjanmaaPohjois-Pohjanmaa

KainuuLappi

Ahvenanmaa

Natural gas Coal Peat Bio, etc. Fuel oil Others

30.9.2014 Wilhelms

Renewable energy sources in the production of district heat and cogeneration

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

GWh

30.9.2014

CO2-emissions from district heat production

Sources: Statistics Finland (2000...2012) Finnish Energy Industries (1976...1999, 2013)

Wilhelms

30.9.2014 Wilhelms

Prices of district heat (incl. VAT) Average, minimum and maximum values

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

1980 1984 1988 1992 1996 2000 2004 2008 2012

€/MWh

30.9.2014 Wilhelms

The share of district heating companies according to the average heat sales price year 2013 (incl. VAT)

0%

2%

4%

6%

8%

10%

12%

14%

48 54 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 100-

€/MWh

weighted average price 72,7 €/MWh

arithmetical average price 80,1 €/MWh

30.9.2014

District heating price, fixed price + energy fee €/MWh (incl. VAT)

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90

1.7.00 1.7.01 1.7.02 1.7.03 1.7.04 1.7.05 1.7.06 1.7.07 1.7.08 1.7.09 1.7.10 1.7.11 1.7.12 1.7.13 1.7.14

€/MWh

Detached house (500 m³) Terraced house (2000 m³)

Block, small (10000 m³) Block, large (25000 m³)

Detached house (600 m³) Terraced house/Block, small (5000 m³)

Block, large (20000 m³)

Buildingsuntil 1.7.2010:

Buildingssince 1.7.2010:

Wilhelms

30.9.2014

Real price of district heat Corrected with cost-of-living index, 1.1.1981 = 100

Share of taxes (excise tax of fuels and VAT) 28,8 % (1.7.2014)

0

20

40

60

80

100

120

140

160

01/81 01/84 01/87 01/90 01/93 01/96 01/99 01/02 01/05 01/08 01/11 01/14

real price of district heat real price of district heat (excl. taxes)Wilhelms

30.9.2014 Wilhelms

District heat consumption year 2013 31,7 TWh

Housing55 %

Industry10 %

Other35 %

30.9.2014 Wilhelms

Distribution of customers according to contracted heat load

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

- 20 21 - 60 61 - 290 291 - 520 521 -contracted heat load, kW

%-share 1990 %-share 1995 %-share 2000

%-share 2005 %-share 2010 %-share 2013

30.9.2014 Wilhelms

Number of district heated buildings

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010

pc.

30.9.2014 Wilhelms

Production capacity and connected heat load of the customers

0

5

10

15

20

25

1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010

GW

Production capacity GW Connected heat load GW

30.9.2014

District heating production units

Combined heat and power plants as well as stationary heating plants and heat pumps Source: District Heating in Finland 2013, Finnish Energy Industries

Wilhelms

30.9.2014

District heating production units

Combined heat and power plants as well as stationary heating plants and heat pumps - domestic energy sources Source: District Heating in Finland 2013, Finnish Energy Industries

Wilhelms

30.9.2014

District heating production units

Combined heat and power plants as well as stationary heating plants and heat pumps - renewable fuels Source: District Heating in Finland 2013, Finnish Energy Industries

Wilhelms

30.9.2014

Fuels used in district heat production and CHP production

Source: District Heating in Finland 2013, Finnish Energy Industries

Wilhelms