New Subsidy Scheme for Renewable Energy in Finland
Finland is emphasising its commitment to renewable energy by approving an amendment to the new support system.
On 23 May 2018, Finland took a step forward in approving Government Bill 175/2017 for a new subsidy scheme for electricity produced by renewable sources. The new system will be based on a technology-neutral tender process. The new legislation will enter into force later by decree. According to the current plan, a total yearly production amount of 1,4 TWh will be subject to tender during the tender process. The tenders with the lowest premium and with an annual electricity production not exceeding the annual production subject to tender would win the process. The premium offered would have to fall under the threshold price of the process, which to start with is EUR 53.5 per MWh, i.e. the same as under the current feed-in tariff system.
The subsidy paid to the producer would be determined based on the premium of the winning tender and the amount of electricity produced and average market price of electricity during the tariff period. The maximum duration of the subsidy period is the same as in the current feed-in tariff system, i.e. 12 years.
More information to follow in the next few days.