The energy system is changing rapidly – what does it mean for the sector’s circular economy?

The Finnish energy system has undergone a rapid transformation over the past decade, as fuel-intensive energy production has been replaced by material-intensive production, such as wind power, solar energy, and heat pumps. This shift is also reshaping the sector’s circular economy, as the focus of material consumption has pivoted from fuels to the construction of production facilities.

A report conducted by Tyrsky for Ympäristöpooli deepens our understanding of this transition and the current state of the circular economy in the energy sector. It identifies future challenges and outlines strategic recommendations to promote resource wisdom within the industry.

The circular economy curbs natural resource consumption and reduces dependence on imported raw materials

The energy transition is also changing the nature of environmental impacts. Instead of carbon dioxide emissions from energy production, the focus is shifting to raw material extraction and processing, as well as land use. At the same time, dependence on fossil fuels has been replaced by a dependence on raw materials such as steel, copper, and rare earth elements.

The circular economy helps solve these challenges: it can curb the consumption of natural resources and improve security of supply by replacing virgin, imported raw materials with recycled materials. The role of the circular economy will become increasingly critical from the 2040s onwards, as the wind turbines, solar panels, and batteries currently in use reach the end of their lifespans.

In the energy sector, the circular economy is a strategic choice where resource wisdom is integrated into all decision-making

The energy sector’s transition to a circular economy requires a systemic shift, where resource wisdom is integrated into all decision-making. The key is to identify the stages where material usage can be influenced most effectively.

The report identifies four strategic levels for the circular economy in the energy sector: strategic planning, life extension, value recovery back into circulation, and molecule recovery. Based on these findings, recommendations were developed to support the industry in advancing system-level resource wisdom and security of supply.

“With the energy transition, the circular economy is emerging as a strategic sustainability and security of supply issue for the energy sector. The report conducted by Tyrsky provides a clear direction for how the industry can transition toward system-level resource wisdom and proactively manage future material flows.” — Marja Rankila, Finnish Energy (Energiateollisuus ry).

Are you interested in the benefits, opportunities, and promotion of the circular economy? Contact us here or send a message to CEO Pirjo Jantunen (pirjo.jantunen@tyrskyconsulting.fi).