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Regulatory informationRES-transport

Subsidy 1: Investment aid for renewable energy and new energy technologies

Abbreviated form of legal source(s)

  • Decree 1098/2017
  • Decree 688/2001

Description of support scheme

A technology-neutral support scheme grants investment aid for RES projects, energy efficiency projects and new energy technologies, which are not specified by the legal sources. Investment aid may be granted against a fixed assets investment. The main aim of the scheme is to support investments, which could not be realised without public funding and that support reaching Finland’s RES and climate obligations and goals (art 5 Decree 1098/2017).
The aid can cover costs caused by planning, construction, and material purchases (including land but with conditions) (Art 10 Decree 1098/2017).
In 2021, the main instrument relevant for the RES-T sector is the investment aid for large demonstration projects: The government has allocated EUR 60 million/year for 2020-2021 for pilot projects featuring a novel technology, which is not specified further in the legal sources. The eligible projects should be of demonstrative nature and have a high scalability potential, and help with reaching national and EU RES 2030 RES obligations. The call is open for RES-T projects featuring the use of any renewable fuel.
The government allocated EUR 60 million to this support scheme in its 2020 budget. The 2021 proposed budget amounts to EUR 60 million, as well.

Amount

Under Decree 1098/2017, the investment aid is granted against a fixed assets investment with eligible costs exceeding € 5,000,000. Investment aid can be up to 40 per cent of the total project costs (Arts 5 and 10 1098/2017).

Addressees

Aid recipients can be companies, municipalities and other entities, excluding housing companies, residential properties and farms (Art 7 Decree 1098/2017).

Procedure

All applications are submitted electronically to Business Finland regardless of the size of the project, and they are accepted on a rolling basis around the year. Energy aid can only be granted for projects that have not been initiated yet, and only for expenses taking place after the date of the positive energy aid decision. Processing an application will take approximately 2 months.
The competent authorities will assess the projects based on the amount applied for, the energy impact of the project, cost-efficiency, feasibility, novelty, duplicability, and other effects (Arts 7-10 Decree 1098/2017

Competent authority

Ministry of Economic Affairs and Employment; Business Finland

Technologies

Biofuels

Eligible

Electric vehicle

Eligible

Hydrogen

Eligible