Recipes for Systemic Change - Helsinki Design Lab

D3 – EnergyD3.1 Energy PolicyIn the past, the Finnish government has focused on securing a cheap andreliable energy supply for industry and domestic consumers, relying heavilyon Russia and other Baltic states to provide fossil fuels. Since joining the EU,it began to adopt and integrate its policies with Europe. As the EU developeda more robust and comprehensive energy policy framework, Finland turnedover much of its policy leadership to Brussels. Today, most energy policy istightly coordinated with EU recommendations and directives.Finland's energy markets have been liberalised since the Energy MarketAct of 1995. In 1998, it became a partner in the Nord Pool electricity market(Nordic Power Exchange); the largest power derivatives exchange market inthe EU and largest physical power market in the world.Energy policy in Finland is organised into five principal institutions:➢ Ministry of Employment and the Economy (MEE) is the principleauthority. Within the MEE, the Energy Department directs activitiesthrough three subdivisions (Energy Management & Nuclear EnergyDivision, Renewables & Energy Efficiency Division, and Energy MarketDivision). MEE works with the Ministry of the Environment toaddress GHG and climate change issues.➢ TEKES (Finnish Funding Agency for Technology & Innovation)finances R&D in the private and public sectors with public funds.➢ VTT (Technical Research Centre of Finland) focuses on energy technologyand how energy is used in transportation and industry.➢ MOTIVA OY is a government-affiliated agency that "promotes thesustainable use of energy and materials." It is a key organization indeveloping and measuring voluntary energy efficiency commitmentsin Finland through energy audits and information dissemination.Finland's energy objectives as stated in its Climate and Energy Strategy,will function as the government’s road map until 2020. The Strategydescribes policies and measures that will bring Finland into compliancewith the EU's climate and energy targets. According to an IEA analysis, thespecific objectives are:➢ Restructuring energy production to meet GHG reduction targets.➢ Promotion of free energy markets.➢ Promotion of energy efficiency and conservation.➢ Promotion of bio-energy and other domestic fuels.➢ Maintaining high technological standards.➢ Ensuring a diversified fuel mix.➢ Ensuring security of supply.(Energy Policies of IEA Countries, Finland 2007 Review 21-2)235