Legal Update | Proposal on the New Finnish Support Scheme for Renewable Energy is Being Circulated for Comments
We have published a new Legal Update on "Proposal on the New Finnish Support Scheme for Renewable Energy is Being Circulated for Comments". You can find the Legal Update here:
The full text is also available below.
Proposal on the New Finnish Support Scheme for Renewable Energy is Being Circulated for Comments
The Finnish Ministry of Employment and the Economy has published a request for comments on the draft government bill regarding a new support scheme for electricity produced from renewable energy sources. The proposed subsidy scheme is intended to bridge the gap between the current subsidy scheme and future development needs of renewable energy sources on market conditions.
According to the draft government bill, the proposed subsidy scheme would be technology-neutral and applicable on wind power, biogas, woodchips and wood fuel, solar power and wave power investments. Furthermore, the scheme would be based on a competitive bidding process with premiums. According to the proposal, an energy producer that has won the technology-neutral bidding process, would be paid the premium it has claimed in the bid, if the market price of electricity would at its maximum correspond to the reference price of EUR 30/MWh. The premium is proposed to be reduced when the market price exceeds the reference price 0f EUR 30/MWh. The subsidy would not be paid in case the sum of the reference price and the premium equal or exceed the market price of electricity of three months.
The energy producer is obligated to produce renewable electricity in accordance with the accepted bid. If the set production quota is not met, the energy producer will need to compensate the underproduction to the state. According to the proposal, the bidding processes are managed by the Energy Authority and they are to be held in 2018–2019.
Possible comments are requested to be submitted to the Ministry of Employment and the Economy by 4th of October 2017. The schedule for the amendments on the Act on Production Subsidy for Electricity Produced from Renewable Energy Sources to enter into force has not been set yet, as the premium system will need to be accepted by the European Commission.
We will keep you updated and we are happy to give you further information should you have any questions.
Please find a link below to the draft proposal (the text is available in Finnish).
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