Nordic heating and cooling

Nordic approach to EU's Heating and Cooling Strategy

image of Nordic heating and cooling

According to the EU Commission, the heating and cooling sector must sharply reduce its energy consumption and cut its use of fossil fuel in order to meet the EU's climate and energy goals. In the Nordic countries, a lot of effort has already been put to make heat production and consumption energy efficient and to decrease the emissions. To disseminate these experiences and good practices wider in Europe, and to identify further needs for co-operation, this study attempts to identify the common approaches of the Nordic countries towards the EU’s heating and cooling strategy and Winter Package regulation. This report describes the results of the work based on Pöyry’s analysis of the current heating and cooling sector practices and regulation in the Nordic countries, and interviews of the regulators and energy industry representatives from each country.



Integration of electricity and heating sectors in the Nordic

Increasing share of intermittent renewable electricity generation, such as wind and solar power, increases the need for demand flexibility and storage of electricity. During windy periods, there is abundancy of electric power in the Nordics, and the electricity prices are very low or in some hours even negative. The subsidized investments into renewable electricity generation partly drive the electricity market prices down, and the profitability of condensing power generation has decreased, which has led to closing down of power plants. As a result, there is increasing need for energy storage, but also need to cut the peaks in power demand.


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