Decentralised Power Generation
The Metsästä Lämmöksi® (From Forest to Heat) business model is a pioneer in decentralised power generation and in the networking of entrepreneurs in Finland.
The Metsästä Lämmöksi® product chain comprises a network of decentralised power generation and distribution. Metsästä Lämmöksi® owns and manages the power generation plants and distribution networks. Its customers include municipal authorities, property clusters and sizeable individual properties. The customer relationship is established either directly or indirectly with the customer requiring an energy supply.
Metsästä Lämmöksi® buys the wood to be processed into wood fuel and manages the entire wood flow at each stage of the process to comply with the regulations concerning information on origin. Businesses and entrepreneurs operating within the network are bound to the sub-stages of the process by contract. They charge for their work output according to quality-related revenue logic. The revenue model applied is based on revenues from energy sales. The model encourages energy efficiency throughout the chain, since the costs of the operation are generated in terms of cubic metres and the revenues in terms of megawatts supplied.
Overall quality control is the cornerstone of small-scale power generation. The entire supply chain must be well-informed about the quality requirements for fuel for each power plant in order to ensure trouble-free power generation and energy supply to customers.
- Employment of local people and businesses through networking
- Regional self-sufficiency in power generation
- Reduction of carbon dioxide levels
- Improvement of forest growth potential
- Higher income from wood sales in the long term
The Metsästä Lämmöksi® business model is applied in the Savonlinna region in Finland and incorporates seven small-scale heat generation plants for specific districts or properties. Their total annual output is 13 500 MWh, which corresponds to approx. 23 000 loose-m3 or 9 200 solid-m3 of fuel chips, which in turn corresponds to approx. 190 hectares of managed forest. The heat generation plants are located within 30 km of each other. The raw material is obtained from a radius of 50 km and its average storage time is 1½ years. The operation provides work throughout the year for local entrepreneurs and their employees in the acquisition and processing of wood fuel, in the production of heat, and in the construction of new heat generation plants and heat distribution networks.
The generation of 13 500 MWh using wood fuel requires 80 000 litres of diesel oil.
The generation of 13 500 MWh using light fuel oil requires 2 000 000 litres of heating oil.
Metsäenergia Meter Oy, Korjaamotie 10, FI-58200 Kerimäki, Finland, www.metsaenergia.fi