Increasingly attractive market conditions for wind power development in Finland have produced the first purely market-based projects that do not receive any state subsidies. According to Finnish company TuuliWatti, its Viinamäki wind park project in North-Western Finland, consisting of five 4.2 MW wind turbines, is the first market-based investment of this magnitude in the Nordic countries.
TuuliWatti's Managing Director Jari Suominen believes that the development of wind power has huge potential in Finland, offering the opportunity to become energy self-sufficient and start exporting electricity. "Finland's surface area is similar in size to densely populated Germany but the amount of installed wind power is still just a small fraction in comparison. There is plenty of space in sparsely populated Finland," says Suominen in an interview with Kauppalehti.
By utilising the best wind production sites and the latest technologies, Finland could be producing 300 TWh of electricity annually from wind power, according to an estimate made by VTT Technical Research Center of Finland in 2017. This would be three times more than Finland's current demand for electricity.
Google recently signed three Power Purchase Agreements (PPAs) in Finland with leading European renewable energy developers CPC, Neoen and wpd. The companies are now constructing three new wind farms in Finland, producing a total of 190 MW of electricity to the same grid where Google's Hamina data center draws its power. The PPAs in Finland are Google's first in Europe which do not involve a government subsidy for renewable energy.
"For Google there is a very clear business case for signing these PPAs, given the energy prices in the Nordics, the wind conditions in Finland and the way projects are permitted here. This is very encouraging and also an important market signal for the policy-makers," says Marc Oman, Senior Lead, Energy & Infrastructure, Google.
Invest in Finland has supported many international wind power companies to identify new business opportunities and find cooperation partners in Finland.
Finland's new premium scheme for renewable energy comprises of a competitive auction process under which the first premium system based, technology-neutral tender process will be held at the end of this year. The support scheme is a combination of a sliding and fixed premium and applies to wind power, solar power, wave power, biogas and wood fuel power. Bids can be submitted during the period 15 November – 31 December 2018. The aggregate annual electricity production covered by the scheme is 1.4 TWh.
There are currently about 15,500 MW of wind power projects planned in Finland, according to the Finnish Wind Power Association. From these projects, 7300 MW already have the required planning and building permits and could be realised in the short term, which would more than triple Finland's current wind power capacity.
Finland introduced its renewable energy feed-in tariff for wind power in 2011, resulting in significant investments in the sector.
"Since 2011, Finland's wind power market has attracted a great deal of interest from both domestic and international investors. The recent market-based projects and agreements signal the start of a new phase in the development of wind power in Finland, demonstrating that this sector is commercially attractive," says Jari Tielinen, Senior Advisor, Invest in Finland.
Senior Advisor, Cleantech, Invest in Finland
jari.tielinen (at) businessfinland.fi
+358 (0)400 849 270
Interested in business opportunities in Finland? You can filter selected examples by region or industry on the Business Opportunity Map below.
Or click here: https://www.investinfinland.fi/latest-business-opportunity/finland
Interested in discussing more about investment opportunities in Finland? Please contact our industry advisors.