In its plenary session on October 3rd, the Finnish government decided to submit a government proposal to Parliament for legislation on offshore wind power in the exclusive economic zone. Renewables Finland views this progress positively and hopes for a smooth parliamentary process. Swift progress would enable the rapid initiation of competitive bidding for offshore wind power areas, allowing Finland to capitalize on the significant national and local economic benefits of offshore wind power.
From the perspective of advancing domestic offshore wind power construction, the government’s proposal is a positive step forward. However, due to the competitive situation in the Nordic countries, the legislative proposal must proceed to a decision without delay.
“According to a study we commissioned last year, the offshore wind power projects planned in Finland in the spring of 2023 could generate over 200,000 person-years of employment and €4.5 billion in tax revenue throughout their lifecycle. To realize this benefit, it is essential that Finland quickly advances the development and construction of offshore wind power projects in the exclusiveeconomic zone. This would also enable investments in domestic supply chains,” says Anni Mikkonen, CEO of Renewables Finland.
Renewables Finland generally supports the selection of the winner of competitive bidding primarily based on qualitative criteria. These criteria can include the bidder’s experience, financial status, expertise, and capacity to advance the project, environmental impact, project acceptance, flexibility in the energy system, safety, and compliance with EU regulations. Well-implemented qualitative criteria create real differentiation between bidders and strengthen the responsible development of offshore wind power.
Offshore wind power meets Finland’s growing electricity demand
Offshore wind power plays a crucial role in the growth of domestic clean electricity production and is essential as industries electrify and green investments are attracted to Finland. Offshore wind also enjoys broad national approval. According to a yet-to-be-published survey commissioned by Renewables Finland, 66% of national decision makers support building offshore wind power.
Fingrid’s scenarios estimate that by 2030, electricity production and consumption could be 50% higher than today. By 2035, electricity production and consumption could even double from current levels. As society electrifies, particularly data center investments and the electrification of district heating are advancing in Finland.
Key points of the offshore wind power act in the exclusive economic zone
The offshore wind power act establishes the rules for constructing offshore wind power in Finland’s exclusiveeconomic zone. Under the bidding model for offshore wind power in Finland’s exclusive economic zone, the government will decide on the maritime area to be put up for bidding. The government, upon the proposal of the Ministry of Economic Affairs and Employment, will decide on allocating an area in the exclusive economic zone for offshore wind power use and competitive bidding. The Energy Authority will organize the bidding process. The winner is selected based on the offered utilization fee and qualitative criteria. The winner of the bidding process can apply to the government for a utilization permit.
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