Impacts of the Eno Energy Cooperative on the regional economy in 2000-2015

Eno

Eno Energy cooperative is an internationally acknowledged example of heat entrepreneurship based on a cooperative model. Substituting fossil fuel oil with locally produced woodchips in community heating since the year 2000 has resulted in significant socio-economic benefits. Latest research by GREBE partners Karelia UAS and LUKE outlines these through a time-series analysis.

The Eno Energy Cooperative operates and owns three district heating plants producing 15,500 MWh of heat annually and uses approximately 27,000 loose cubic metres of locally produced woodchips.  The impacts of the Eno Energy Cooperative were modelled by using an input-output model of North-Karelia, including 33 sectors. The impacts presented are total impacts including construction of heating plants in 2000-2004, production of heat by using locally produced woodchips, and impacts of reduced heating costs (savings) in both public and private sectors. Induced impacts are captured by including household consumption as a sector in the I-O model, and re-investing public sector savings to the social services.

According to the I-O modelling, total employment impacts of the Eno Energy Cooperative in 2000-2015 were approximately 160 FTE’s and total income impact in same period were approximately 6.6 MEUR. During the period of highest oil prices, over 50% of the benefits resulted from heating cost savings of both private households and public sector.

The results indicate that socio-economic impacts may be generated by using different types of strategies, such as utilising business models of social enterprises with re-investment strategies, or cooperatives providing use for the local resources and reducing the energy costs both in private and public sectors.

Currently, Eno Energy Cooperative are participating in the GREBE Entrepreneurship Enabler Scheme (EES) roll-out in North Karelia. They are investigating future business and cooperation opportunities together with business a mentor from Spiralia Ltd., Lahti.

Fig1

Figure1: Employment impacts (FTE jobs) of Eno Energy Cooperative in 2000-2015, including impacts of construction, heat production and heating cost savings (when re-invested).

Fig2

Figure2: Income impacts of Eno Energy Cooperative in 2000-2015, including impacts of construction, heat production and heating cost savings (when re-invested).

 

 

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Finnish heat enterprises investing in solar power

Solar PV at Eno
Satellite picture based 3D model of the solar PV plant in Eno (Kim Blomqvist, Karelia UAS)

The heat entrepreneurs have been actively involved in the latest developments of the solar power in North Karelia, Finland. Several investments will take place this autumn to provide renewable electricity for district heating plants.

Finnish heat entrepreneurship is mostly based on biomass. The number of heating plants has increased steadily between the early establishments in 1990’s, to 330 plants in 2006 and 618 in 2015. About 25 % of the plants were connected to the district heating network, and the median size of the heating plants is 500 kW. The heat enterprises are mostly private companies (43%), cooperatives (12.7%) and other types of firms, mostly single entrepreneurs (44.5%).

The heat entrepreneurs have become increasingly interested in solar power integrated to the heating plans. The plans have stable electricity consumption profiles, i.e. less hourly variations compared to many other end-users. The systems require very limited service and maintenance work, and profitability is better than in solar thermal. The economic analyses indicate that the new investments in DH plans located in North Karelia will have approximately 11-15 years paybacks and 5-9 internal interest rates.

The Power from the Sun project, run by Kim Blomqvist from GREBE project partner Karelia UAS, has supported the establishment of the systems in four energy enterprises in Eno, Tuupovaara, Kiihtelysvaara, Kontiolahti and Biowin Karelia Ltd. The investments have received 25% energy support from the Finnish Funding Agency for Innovation. Seven solar power plans have total capacity of 70 kW, varying between 5 to 21 kW, and estimated annual production is 52 000 kWh. The systems will be provided by a local company Mirotex Ltd. and installed in September.