Development of energy security in Finland and in the baltic states since 1991

Abstract

Finland and the Baltic States are small countries with high demand for energy due to their cold climate and energy-intensive industry. Moreover, their economies and energy markets have undergone significant transformation since 1991 after the dissolution of the Soviet Union. The changes in the energy systems have also brought challenges regarding energy security. Energy security is a complex concept, comprising various technical, economical and environmental aspects. This paper analyses trends in self-sufficiency, carbon intensity and affordability in Finland and in the Baltic States since 1991. The Baltic systems have partially revived from the shocks in the early 1990s, but the 2020s will bring along much pressure for development and the associated energy security risks. The challenge will be in carrying out the required system development, e.g. decarbonisation and increasing self-sufficiency, while maintaining energy affordable.