Tender-based premium scheme

• Act 1396/2010
• Decree 1397/2010
• Act 688/2001

The tender based premium scheme is a support scheme to promote cost effective development of renewable energy in Finland. The scheme is technology neutral for new producers of electricity from wind, solar, biogas, biomass wood fuels and wave power (Art 5 Act 1396/2010). The legal basis of the current tender-based premium scheme is the Chapter 4 of Decree 1396/2010, which entered into force in 2018.
The tenders are 1.4 TWh annually. The regulating authority is the Energy Agency opened up the first tendering round in autumn 2018 from 15 of November to 31 of December. In the 2018 round, the average price for the premium was EUR 2.49/MWh for the accepted projects. The tariff functions on a pay-as-bid principle, and the most affordable bids were accepted in the 2018 round. The system per se is technology neutral but all the lowest bids were made by onshore wind companies.
Since 2018, no new rounds have been announced or conducted.

Installed capacity

Hybrid support types
Pay as bid: each producer or renewable energy accepted offer will receive payment according to the bids offered (Chapter 4 art. 31 Act 1396/2010).

Developers of new RES projects can participate in the tender, given that their planned technology is included in the listing (Art 7 Act 1396/2010).

The procurement procedure of the aid is done as a closed tender (Art 30, Act 1396/2010). The participant of a tender is obligated to attach required information about the installation, such as the production capacity. The criteria and conditions for Energy Authority approval are determined by the article 32 of the Act 1396/2010.
The offered bids are binding.
The tariff is paid every three months for a maximum period of 12 years. The right to the tariff can be revoked for a number of reasons, e.g., if the electricity production is discontinued for at least a year. The recipient is obliged to report on their electricity production and possible discontinuation periods to it to the Energy Authority. (Arts 15-20, art 22, Act 1396/2010).

Energy Authority; Ministry of Economic Affairs and Employment