Heating Conundrum: The Unviability of Electric Boilers and Heat Pumps for District Heat Production in Finland During Winter Frosts

Heat generation in winter frosts using heat pumps and electric boilers is not economically viable, says Pekka Vihervuori. Varpu Sairinen in Kauppalehti suggests that taxing biomass and shifting towards heat pumps and electric boilers for district heat production could be a solution as the cost of biomass, especially forest wood chips and sawmill industry by-products, has increased since the Ukraine war began.

In Finland, the cost of forest wood and wood pellets has increased by over 70 percent since the Ukraine war began, putting a strain on heating companies across the country. This has resulted in price hikes for district heating customers and missed payments from housing companies struggling with energy bills.

The transition from biomass to heat pumps and electric boilers raises concerns about economic viability, especially in rural areas where electricity production may be limited. Without access to wood as a fuel source, heating companies may resort to using oil, which poses its own challenges.

While there are limited alternatives to burning wood for heat generation in Finland, particularly in smaller municipalities, solutions must be developed before a transition away from biomass can occur. Until then, reliance on wood for heat generation remains a significant challenge for heating companies.