Policies in Finland

The Finnish government supports the construction and operation of new RES-E projects mainly through a single, cross-sectoral technology-neutral subsidy scheme. The focus has been shifting from premium tariffs into pilot project support in the recent years as especially in the onshore wind sector, electricity production has become profitable on the market without state support. In addition, a technology-neutral tender-based scheme was introduced in 2018.

In the electricity sector, the share of renewables will rise from 41% to 53% between years 2020 and 2030 (NECP Finland, 2019).

• Subsidy: Investment aid – technology-neutral investment aid for the realisation of various RES projects (not only RES-E)
• Premium tariff – the feed-in tariff system has been closed for new application gradually in years 2017–2021, but payments are still being made for the recipients admitted prior to the closing of the scheme
• Tender-based scheme – The technology-neutral tender scheme offers financial support for the construction of up to 1.4TWh/year

• Ministry of Economic Affairs and Employment
• Energy Authority
• Business Finland

In Finland, the production of heat from renewable energies is subsidised through various support schemes and investment aids.
The main measure, through which heat produced from RES is promoted is a “heat bonus” allocated to CHP plants working on biogas and wood fuel. In addition to that, various investment supports are made available.

The Finnish target is to increase the share of RES-H from the current 54% to 61% out of total consumption (NECP Finland, 2019).

• The subsidy “heat bonus” is paid to heat-generating plants burning biogas and wood-based biomass.
• A grant called Investment aid is available for the construction of some RES-H installations using renewable energy sources.
• Investment support is available for farmers to financially support the construction of heat plants working on renewable energy sources.
• Support for replacement of oil heating systems are being phased out with government support. There are two subsidy schemes available for the owners of private detached houses and municipality-owned buildings.

• Ministry of Economic Affairs and Employment
• Ministry of Agriculture and Forestry
• Business Finland
• Ely-keskus
• ARA
• Ely-keskus of the Pirkanmaa region

There are two main types of support schemes for RES-T in Finland: structural, large schemes aimed at reducing transport emissions on a holistic level, and smaller, individual schemes supporting consumers at switching from fossil fuels to RES.
The Finnish target for 2030 is to reach a 45% share of renewables in final share of transport sector consumption (NECP Finland, 2019).

• Investment aid for new technologies – This large support scheme is also applicable to some RES-T applicants in 2021.
• Biofuels quota – This mechanism obliges companies selling petrol or diesel fuels to ensure that biofuels compose a defined percentage of the company’s total annual fuel sales.
• Tax Regulation mechanism ¬– The taxation of liquid fuels is carried out as taxation of separate fuel components based on their energy content and carbon dioxide emission, meaning reduced taxation for biofuels.
• Subsidy for purchasing or leasing a new electric vehicle
• Support of RES-T infrastructure – there is financial support available for the construction of e-vehicle charging infrastructure

• Traficom
• Finnish Tax Administration
• Business Finland
• Ministry of Economic Affairs and Employment