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Overview
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).
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Summary of support system
- 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
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Competent authorities
- Ministry of Economic Affairs and Employment
- Energy Authority
- Business Finland
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Overview
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). -
Summary of support schemes
- 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
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Competent authorities
- Traficom
- Finnish Tax Administration
- Business Finland
- Ministry of Economic Affairs and Employment
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Summary
Based on the latest NECP from 2019, Finland is planning to increase its RES-E consumption from the current 41% to 53% by 2030. In the heating sector, the share of RES will rise from 54% to 61%. As the share of onshore wind will more than double in the next 10 years (from 8% to 18% of consumption), it is relevant to cover onshore wind as one of the technologies in this section.
The need for heating is considerably higher in Finland than in many other EU member states due to the state’s Northern location. This section will also cover two RES-H technologies: geothermal and industrial-sized aerothermal and hydrothermal heat pumps. They do not yet constitute a significant share of the Finnish RES-H mix, but they are included due to their experimental nature and scalability potential. The most common RES-H technology, biomass, is not projected to increase in importance in the next decade and its permitting framework is established and rather unproblematic, which is why it is not relevant to be included.
This section covers the permitting and authorization process for the following RES technologies: onshore wind, geothermal and ambient heat. -
Sequential order of process steps
1. Site selection
2. Administrative authorization
3. Grid connection
4. Corporate legal-fiscal -
Competent authorities
- Finnish Defence Forces
- Ely-keskus
- Municipalities
- Regional State Administrative Agency
- Traficom
- DSO’s
