Sector coupling cleans up the energy system and offers flexibility for the electricity system

The Government of Finland has set the goal of Finland achieving carbon neutrality by 2035. The goal steers the energy sector and transport strongly towards renewal. The Fingrid Current day discusses how sector coupling links the energy systems together, taking advantage of clean and inexpensive electricity. At the same time, sector coupling brings flexibility to the electricity system, where it is definitely needed as the production of variable wind and solar power increases.

Approximately 30 per cent of Finnish carbon dioxide emissions come from the production of energy. The carbon-free production methods of the future are nuclear, water, wind and solar power. With their help, the electricity system can be cleaned up and made carbon-free. A massive revolution is taking place in the whole energy system, as emission-free and inexpensive electricity is starting to be used for cleaning the carbon dioxide emissions out of the gas, heating and transport sectors. This development, known as sector coupling, offers completely new kinds of business opportunities for the actors in the field.

From the point of view of the electricity system, sector coupling means that the consumption of electricity increases and there is an increasing need to invest in clean electricity production and electricity networks. The development brings more flexibility to the electricity system, where it is needed. At its best, sector coupling makes it possible to increase the long-term storage of electricity and solve the problem of balancing the production and consumption of electricity linked to variable wind and solar power. Large amounts of inexpensively produced electricity can be used in the electricity system to recharge heat storages; the recovered heat can be used later.

A tax reform is needed immediately

In sector coupling, electricity is used as a “raw material”. The current tax model based on the end use of electricity takes away the competitiveness of electricity in cleaning up the energy system and prevents the desired development of integration. 

“In the Government Programme of the Finnish Government, the interlinking of energy systems has been identified correctly. The programme also includes a promise to work towards reducing the taxation of electricity when it is used as a “raw material” for the heating system. Hopefully the tax reform will be made as soon as possible so that the field can really start working on the development. There’s no time to waste,” says Jukka Ruusunen, President & CEO of Fingrid.

Fingrid creates opportunities

Fingrid creates the prerequisites for the electrification of society and the sector coupling of energy systems by developing the power grid. The company’s objective is to invest in the transmission connections between the north and the south so that Finland can remain a single price area in electricity trade.

A strong power grid makes new investments in the production of electricity possible. In addition to the investment opportunities, Fingrid creates opportunities for actors to participate in the electricity market in new, flexible ways. In Fingrid’s view, a market-driven approach enables new business opportunities and provides encouragement for new innovations that are sorely needed.

Follow the Fingrid Current day on 5 November via webcast starting at 13:00

You can also follow the Fingrid Current day, which focuses on the opportunities created by sector coupling via webcast. The event starts on Tuesday 5 November 2019 at 13:00: 

https://prospectumlive.com/event/fingrid_20191105

Speeches at the Fingrid Current day:

Opening the event
Jussi Jyrinsalo, Senior Vice President, Fingrid Oyj

What does sector coupling mean for Finland?
Karoliina Auvinen, Director of Stakeholder Relations, Smart Energy Transition, Aalto University

Sector coupling from the point of view of the electricity system
Matti Rautkivi, Director, Wärtsilä Corporation

How does the Electricity System benefit from Power-to-Gas Coupling?
Ben Voorhorst, Chief Operating Officer, TenneT

The power grid prepares for the electricity system of the future
Timo Kiiveri, Senior Vice President, Fingrid Oyj

The customer’s perspective on developing the power grid
Timo Honkanen, CEO, Oy Turku Energia-Åbo Energi Ab, Chairman of Fingrid Oyj’s Advisory Committee

The Government’s contribution to the development of a clean energy system
Jari Partanen, State Secretary, Ministry of Economic Affairs and Employment

The electricity system as a part of the energy system
Jukka Ruusunen, President & CEO, Fingrid Oyj

Further information:

President & CEO Jukka Ruusunen, Fingrid, tel. +358 30 395 5140 or +358 40 593 8428

Sector coupling links the energy systems together.