North Karelia (NK) in Finland is a forerunner in the field of sustainable energy. Being a remote region with extremely cold winters, NK requires a lot of heating, but energy is expensive to import. In these conditions, the region’s vast wood reserves offer clear potential for fuel wood. In these circumstances, biomass-based renewable energy can compete with conventional sources of energy in terms of both cost and efficiency. Biomass is used in small and large district heating systems in towns. Some of the small district heating systems belong to forest owners, which reduces operating costs.
This study examines how North Karelia has utilised biomass energy, and provides four main findings: i) It is possible to harmonise the drivers underpinning renewable energy, especially when renewable energy is part of a long-term development strategy linked to a key regional industry (forestry), includes a large part of the local community and involves a large number of small installations with limited impact on land use and landscape; ii) In remote regions, renewable energy can be an efficient alternative to conventional fuels provided that production costs are properly managed; iii) Regional research bodies should focus on innovations that have an immediate or evident advantage for businesses; iv) Biomass is the renewable energy sector that offers the most development opportunities in rural areas.
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