Premium tariff

Abbreviated form of legal source(s)

Act 1396/2010
Decree 1397/2010

Description of support scheme

The cogeneration of heat and electricity is promoted by giving CHP plants using biogas and wood fuel the right for a fixed heat premium in addition to the feed-in tariff. The plant in question must be in Finland or in Finnish waters and connected to the grid (Art 7 Act 1396/2010).

The feed-in tariff system including the heat premium was closed to biogas and wood-fuelled power plants as of January 1, 2019, and to wood chip power plants as of March 15, 2021.

Under the feed-in tariff system, producers whose power plants are approved in the system are paid a feed-in tariff and the heat premium for a maximum of twelve years.

There is a similar situation in Åland.

Amount

Biogas: The premium is fixed at € 50 per produced MWh (Art 26 Act 1396/2010).
Biomass: The premium is fixed at € 20 per produced MWh (Art 26 Act 1396/2010).

Addressees

Energy producers who produce heat and electricity in a CHP plant using biogas or wood fuel.

Procedure

Within one month of the decision to install a plant, the electricity producer using biogas and wood fuel in CHP plant shall notify the Energy Authority about their plans and about the technical specifications of the plant in writing (Art 13 Act 1396/2010).
The producer shall apply to the Energy Authority for the heat bonus. All applications except applications regarding wood-chip plants must be submitted before the plant starts commercial operation. The application must contain certain information specified by law (Art 14 Act 1396/2010).
The Energy Authority awards heat bonus to all applicants meeting the formal and technical requirements stipulated by the article 26 of Act 1396/2010.

Competent authority

Responsible authority: Ministry of Economic Affairs and Employment
Supervision: Energy Authority
Government of Åland

Technologies

Wind energy onshore: Eligible until 2017 as long as the following criteria are met: The plant must not have received other state grants (Art 9 Act 1396/2010; Art 1 Decree 1397/2010) and the plant must be built entirely from new parts (Art 9 Act 1396/2010; Art 1 Decree 1397/2010).
The nominal capacity of the generator must be at least 500 kVA (Art 9 Act 1396/2010).
Wind energy offshore: Eligible until 2017 as long as the following criteria are met: The plant must not have received other state grants (Art 9 Act 1396/2010; Art 1 Decree 1397/2010) and the plant must be built entirely from new parts (Art 9 Act 1396/2010; Art 1 Decree 1397/2010).
The nominal capacity of the generator must be at least 500 kVA (Art 9 Act 1396/2010).
Solar energy
Geothermal energy
Biogas: Eligible under the following conditions:
• The plant must not have received other state grants (Art 10 Act 1396/2010; Art 1 Decree 1397/2010).
• The plant must be built entirely from new parts (Art 10 Act 1396/2010; Art 1 Decree 1397/2010).
• The biogas used must have been produced in a plant, which was not government-subsidised and was built entirely from new parts (Art 10 Act 1396/2010).
• The nominal capacity of the generator must be at least 100 kVA (Art 10 Act. 1396/2010).
Electricity generated by a biogas plant may be eligible for an increased "heat bonus" if the plant produces both electricity and usable heat.
The plant must achieve an efficiency rate of at least 50%, or even 75% if the capacity of the generators is equal to or exceeds 1 MVA (Art 10 Act 1396/2010).
Hydro-power
Biomass: Wood-chip plants are eligible if they have not received the premium tariff before (Art 8 Act 1396/2010) and the nominal capacity of the generator must be at least 100 kVA (Art 8 Act 1396/2010).
Electricity generated by a wood-chip plant may be eligible for an increased "heat bonus" if the plant includes a pulverized coal boiler that uses wood-chips for fuel.
Wood fuel plants are eligible if they meet the following conditions:
• The plant must not have received other state grants (Art 11 Act 1396/2010; Art 1 Decree 1397/2010).
• The plant must be built entirely from new parts (Art 11 Act 1396/2010; Art 1 Decree 1397/2010).
• The nominal capacity of the generator must be between 100 kVA and 8 MVA (Art 11 Act 1396/2010);
The plant must produce both electricity and usable heat. The plant must achieve an efficiency rate of at least 50%, or even 75% if the capacity of the generators is equal to or exceeds 1 MV (Art 11 Act 1396/2010).