Future energy system - Solar Economy
Fortum believes that the future energy system will be based on emissions-free and inexhaustible energy sources and on overall efficiency of the energy system.
The transition towards Solar Economy brings changes to the way energy is produced and consumed.
In conventional energy production, the combustion of fuels, like coal and gas, provides the main source of energy. Coal, in particular, burdens the environment and has poor total efficiency. With the rapid growth in the global demand for energy and in the consumption of electricity, mitigating climate change is becoming an increasingly important issue. Energy systems and the use of limited natural resources must be made more efficient.
Solar Economy provides solutions to the challenges of climate change and resource scarcity. In Solar Economy, energy from the sun is used either directly as solar electricity and heat or indirectly as hydro, ocean, wind and bioenergy. On the journey towards Solar Economy, traditional production forms will be further developed and used
alongside solar-based production.
In Solar Economy, the energy system is more dynamic and smarter, enabling both centralised and distributed electricity production. Active participation by electricity users brings elasticity to demand, which improves the efficiency of the system.
Towards a Solar Economy
A gradual transition to Solar Economy
Changes in the energy system are slow to implement. Transitioning from the current energy system to a Solar Economy requires technology advancements as well as changes in the energy markets, the political environment, and society's infrastructure and consumption habits - changes that happen over the course of several decades. Development of the operating environment is necessary for the investments required for a change in the energy system, while the length of the transition period and the cost are dependent on political decisions, society's priorities and technology advancements in production forms.
Fortum wants to promote both short- and long-term development of the energy system simultaneously. However, the current emission-free energy sources are not yet able to fulfil the energy demand of today's rapidly developing
society. That is why in the short term we are continuing to widely utilise also traditional energy forms, albeit with the goal to do so even more efficiently.