District heating year 2013

21.1.2014

21.1.20142

District heating and cooling 2013

• Heat sales (incl. taxes) 2 330 mill. €

• Sold heat energy 31,6 TWh

• Average price of DH (incl. taxes) 7,4 c/kWh

• Inhabitants in DH apartments 2,7 mill.

• Market share of district heat 46 %

• Sold district cooling energy 169 GWh

21.1.20143

Market share of space heatingResidential, commercial and public buildings

district heat46,0 %

electricity18,6 %

heat pump11,6 %

light fuel oil8,2 %

wood13,1 %

heavy fuel oil1,4 %

natural gas1,1 %

Source: Statistics FinlandNet effective heating energy, 2012

Heat pump: includes the electricityconsumption of heat pumpsElectricity: includes the electricityconsumption of heat distributionequipment and electric sauna stovesWood: includes the wood used bysauna stoves

21.1.20144

Temperature corrected district heat consumption, TWh

0

5

10

15

20

25

30

35

1970 1976 1982 1988 1994 2000 2006 2012

TWh

21.1.20145

District heat consumption

0

1000

2000

3000

4000

5000

6000

J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec

GWh

2010 2011 2012 2013theoretical consumption 2013 if it had been a "normal" year in temperatures

21.1.20146

District heat production 201334,5 TWh

Cogenerated electricity 13,8 TWh

cogenerated heat 74%

separate heat 26%

21.1.20147

District heat production and the share of cogenerated heat

76% 76% 75% 75% 76% 73% 75% 74% 75% 71% 71% 72% 69% 74%

0

5

10

15

20

25

30

35

40

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

TWh/a

Cogenerated heat Separate heat

21.1.20148

Production capacity of district heat and connected heat load of the customers

0

5

10

15

20

25

1970 1975 1980 1985 1990 1995 2000 2005 2010

GW

Production capacity Connected heat load

21.1.2014

District heat production plants

Combined heat and power plants as well as stationary heating plants and heat plants

Source: District Heating in Finland 2012, Finnish Energy Industries

9

21.1.201410

Fuel consumption in production of district heat and CHP 2013- fuel consumption 56,3 TWh

Coal26% Natural gas

26%

Peat13%

Renewables29%

Secondary heat2%

Oil2%

Others2%

21.1.201411

Fuel consumption in production of district heat and CHP

21.1.2014

Fuels used in district heat production and CHP productionyear 2012

Source: District Heating in Finland 2012, Finnish Energy Industries

12

21.1.201413

Domestic renewable energy sources in production of district heat and CHP

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

GWh

21.1.201414

Specific carbon dioxide emissions from district heat production

Sources:Statistics Finland (2000...2011)Finnish Energy Industries (1976...1999, 2012...2013)

21.1.201415

Value of heat sales, bill. €(incl. VAT)

0,0

0,5

1,0

1,5

2,0

2,5

2000 2002 2004 2006 2008 2010 2012

billion €

21.1.201416

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

Share of the exciseand value added taxeswas 30,0% in theaverage price of districtheat year 2013

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

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

21.1.201417

Prices of district heat and fuels in heat productionindex, January 2004 = 100

CHP = combined heat and power production

80

120

160

200

240

280

320

360

400

440

J anuary-04 J anuary-05 J anuary-06 J anuary-07 J anuary-08 J anuary-09 J anuary-10 J anuary-11 J anuary-12 J anuary-13 J anuary-14

District heat Natural gas, CHP Hard coal, CHP

Milled peat Natural gas, non CHP Hard coal, non CHP

Firewood Heavy fuel oil, non CHP

Sources:Statistics FinlandEnergy Authority

Development of energy taxes Excise taxes of fuels in heat production, consumption tax of electricity

21.1.201418

-2

0

2

4

6

8

10

12

14

16

18

201

99

01

99

31

99

41

99

51

99

71

99

81

99

92

00

32

00

62

00

72

00

82

01

12

01

32

01

5

19

90

19

93

19

94

19

95

19

97

19

98

19

99

20

03

20

06

20

07

20

08

20

11

20

13

20

15

19

90

19

93

19

94

19

95

19

97

19

98

19

99

20

03

20

06

20

07

20

08

20

11

20

13

20

15

19

90

19

93

19

94

19

95

19

97

19

98

19

99

20

03

20

06

20

07

20

08

20

11

20

13

20

15

19

90

19

93

19

94

19

95

19

97

19

98

19

99

20

03

20

06

20

07

20

08

20

11

20

13

20

15

19

90

19

93

19

94

19

95

19

97

19

98

19

99

20

03

20

06

20

07

20

08

20

11

20

13

20

14

20

15

€/MWh

fuels, non-CHP

fuels, CHP production

Electricity I (others)

Electricity I I (industry)

light fuel oil heavy fuel oil hard coal electricitynatural gaspeat

21.1.201419

District cooling – delivered energy and connected heat load

0

50

100

150

200

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Connected load MWSale MWh

delivered energy connected load