Fully renewable South Karelia modelled – may create 3,000 jobs

An energy system that is fully based on renewable sources is feasible for electricity and heating generation in South Karelia. According to a study conducted at the Lappeenranta University of Technology (LUT), the transition to a renewable energy system could be implemented in the region by 2050 at the latest.

The study involved modelling an 80% renewable energy system by 2030 and a 100% renewable energy system by 2050. In order to achieve the 80% target, the system would require 80 3 MW wind power plants and 200 MW of solar power. A transition to a fully renewable energy system would require 350 MW of both wind power and solar power. The calculated model covers energy consumption by the public sector, transport and housing, but not the industry.

A transition to the modelled energy system requires major investments in wind and solar energy, as well as a combination of them, as part of the heating system.

The most challenging sector for this system is transport.

"The vehicle stock is renewed slowly and the final decision is made by consumers. Furthermore, the production of domestic transport fuels has been minor so far," says Jori Lindgren, who carried out the study.

Major impact on employment

The investments required by the system create jobs. The installation of the wind power plants would provide 40 person-years of work per year, and maintenance would provide 3 person-years per year. The number of person-years would keep increasing so that by 2030, the annual employment impact of maintenance would be 48 jobs. The total employment impact is estimated to be 600 person-years.

The installation and operating of the solar power plant would amount to 2,000 person-years of employment. However, the greatest employment impact would be generated by installation work, which is estimated to amount to 150 person-years per year.

In 2012, € 250 million was spent on energy purchases in South Karelia. The total costs would be roughly € 20 million higher in 2030. However, it has been estimated that after the investments the energy production costs would be close to zero, which evens out the impact of the total cost, on the current system.

The city of Lappeenranta has set a target for reducing its CO2 emissions by 80%. The city wants to act as a piloting environment for ambitious renewable energy solutions. Development Director Markku Heinonen is convinced that switching from imported energy to low-emission, domestically produced energy will put economic development and employment in Finland on a new growth trajectory.

”The energy transition will open up opportunities for innovation and new business. The study shows that even in the South Karelia region alone, switching to renewable energy sources will have a massive impact on employment. It is in the government’s best interest to employ various incentives and tax solutions aimed at promoting the realisation of the scenario that has been modelled here.”

The study was conducted as part of the ”Smart Energy Transitions” project funded by the Academy of Finland, in which LUT is participating.

For further information, please contact:
Jori Lindgren, +358 400 650 308, jori.lindgren@student.lut.fi
Markku Heinonen, +358 40 581 1998, markku.heinonen@lappeenranta.fi