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Finland Moving Closer to Feed-in Tariffs in 2011

Article by: Paul Gipe


On April 20, 2010 the Finnish working group on climate and energy policy agreed on their recommendations for how the country would meet it’s EU renewable energy obligations of 38% by 2020. The proposed program is limited to wood biomass and wind energy.

The proposed tariff for wind energy of €0.0835/kWh is expected to be implemented in 2011. The wind tariff, while competitive with its European peers, is for a limited contract term of 12 years. However, projects built during the first two years of the program will receive a higher payment of €0.105/kWh for a period of three years after which they will receive the lower payment for the remainder of the term.

The government’s modest objective is 6 TWh of wind generation by 2020. This is equivalent to about 3,000 MW of onshore wind development.

The Finnish proposal uses a bonus system where the government makes up the difference between the wholesale price and the tariff price.

Currently, there is only 275 MW of wind capacity operating in Finland.

Ministry of Employment and the Economy Statement