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Combined Heat and Power in Finland is very common, much more so than in rest of Europe. 80% of the fossil fuel power plants output both electricity and heated water. Compared to (quick googling) 8% in the US and 11% in EU.

Fear of nuclear power. People don't want water heated by it in their homes. So it is not done. It's not a purely rational thing.

The plants are also located away from cities, so utilizing the waste heat for district heating is uneconomical.

I think it just not hot enough after electricity production. So temperature is not high enough after it passes through turbines. Specially due to distances involved.