Rising Heating Costs and the Struggle to Move Away from Biomass in Finland’s District Heat Production

Taxing Biomass would financially strain heating customers in small towns.

Heat generation during winter frosts is a challenge for both heating companies and households. While heat pumps and electric boilers are often touted as more economical options, the cost of fuel has increased significantly since the Ukraine war began, leading to price hikes for district heating customers. This has put a strain on heating companies across the country, particularly in rural areas where electricity production may be limited.

Varpu Sairinen in Kauppalehti suggests that taxing biomass and shifting towards heat pumps and electric boilers for district heat production could be a solution to the rising cost of biomass, especially forest wood chips and sawmill industry by-products. However, this raises concerns about the economic viability of heat generation in these areas.

The high cost of fuel has caused housing companies to struggle with energy bills, resulting in missed payments. In smaller municipalities where there are limited alternatives to burning wood for heat generation, the lack of economic feasibility and limited infrastructure for heat pumps and electric boilers further complicate the transition away from biomass.

Without viable solutions, heating companies must continue to rely on wood for heat generation. While this presents challenges for both companies and households alike, it remains a significant challenge that must be addressed if we want to ensure sustainable energy production in Finland.

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