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Wind Power: Proposed Revision to the Finnish Feed-in Tariff System

25 February 2014

The Finnish Subsidy Act (1396/2010) introduces a feed-in tariff system which currently guarantees a minimum target price to producers of electricity from wind power up to 2,500 MVA.

A draft Government Bill on revision of the feed-in tariff system was published in January 2014 and is currently being circulated for comment. According to the draft Bill, the revision would reduce uncertainties related to implementation of wind power projects from the investor’s perspective and further promote long-term planning of wind power projects as well as competition.

According to the draft Bill, the electricity producer would have a possibility to ensure a part of the total feed-in tariff 2,500 MVA quota for a wind power plant through application of a quota decision from the Finnish Energy Authority. Such a quota decision could be given if the plant has been granted a building permit under the Land Use and Building Act (132/1999), and if an accession agreement under the Electricity Market Act (588/2013) regarding accession of the power plant to the distribution network has been concluded. As a consequence, an electricity producer applying for acceptance to the feed-in tariff would have first priority to the 2,500 MVA quota if the application concerns a power plant for which a quota decision has been given.

It is proposed that a quota decision by the Energy Authority would be in force for two years and applicable to a specific power plant. The application for acceptance to the feed-in tariff would have to be submitted before the end of the two year-period of the quota decision. In addition, the electricity producer would be obliged to inform the Energy Authority of any reductions of the total nominal output of the generators covered by a quota decision within two months of such reduction being confirmed. The quota decision would be transferable to another electricity producer to whom the further development of the power plant is transferred. The Energy Authority would reject an application for a quota decision in the event of very weighty reasons or if the feed-in tariff total quota is filled.

Contact information:
Klaus Metsä-Simola
Tel. +358 9 2288 4277; Mobile +358 45 262 8916
klaus.metsa-simola@hannessnellman.com

Rabbe Sittnikow
Tel. +358 9 2288 4343; Mobile +358 40 544 5280
rabbe.sittnikow@hannessnellman.com

Tapio Teräkivi
Tel. +358 9 2288 4373; Mobile +358 40 769 8273
tapio.terakivi@hannessnellman.com