24.03.2014

Subsidy proposal for offshore wind power demonstration projects in Finland

New subsidy would include offshore demonstration projects in the wind power feed-in tariff scheme.

The Finnish government is proposing that offshore wind power demonstration projects can join the wind power feed-in tariff scheme, even if they have previously received a state investment subsidy during the construction phase. The proposal is part of a Government Bill to amend the law on subsidies for electricity produced from renewable energy sources, which is currently going through parliament.

According to the Ministry of Employment and the Economy, the demonstration subsidy is aimed to cover the extra costs involved in offshore wind power production. Six companies are currently participating in an application process with the goal of finding Finland’s best offshore wind power demonstration project. The government has reserved an energy subsidy of EUR 20 million for this project in its budget proposal for 2014.

If accepted, the amended in the law would apply to individual offshore wind power demonstration projects. The ministry estimates that 2-4 more projects will be required in addition to the project selected from the currently ongoing application process.

Reducing uncertainties for investors

According to the government proposal, an offshore wind power producer would also be given the opportunity to get advance confirmation of priority acceptance for its wind power plant in the total feed-in tariff quota for subsidized wind power. Finland’s feed-in tariff scheme guarantees a minimum target price to wind power producers up to a total quota of 2,500 MVA.

The aim of the amendment in the law is to reduce uncertainties related to the implementation of wind power projects from the investor’s perspective and further promote long-term planning of wind power projects as well as competition.

Source: Ministry of Employment and the Economy