A new law pertaining to offshore wind development has been introduced by Finland. The Finnish Act on Offshore Wind Power in the Exclusive Economic Zone (EEZ) has been passed by the nation. The new policy, which was signed by the Finnish president, will take effect the following year.Â
The newly introduced policy allows for the organization of Finland’s first tender for offshore wind projects in its EEZ. In addition, the new law aims to address regulatory gaps and promote sustainable energy development.
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Offshore Wind Development Legislation
The new law establishes a clear legal framework for offshore wind projects, Finland’s Ministry of Economic Affairs and Employment said. Such a framework will establish an environment that is predictable and encouraging for project development and construction.
The regulation also aims to make sure that offhsore wind development does not become a roadblock for other marine activities.
Offshore Wind Tender
Finland’s administration plans to identify suitable offshore wind areas in 2025. The government intends to scout suitable areas and conduct a strategic environmental assessment (SEA). After finalizing the locations, the first areas for offshore wind development will be tendered in autumn next year.
The Energy Authority will organize competitive tendering after the government selects the designated areas.
A decree under the new Act will outline the criteria for selecting tender winners. This decree is expected to take effect before the start of the first tendering process.
Competitive Tendering Model
Finland’s new offshore wind tendering model includes three key components:
- Government selection of offshore wind areas.
- Organization of competitive tendering by the Energy Authority.
- Granting of exclusive permits to tender winners for project development.
If the winning bidder does not apply for an exploitation permit, the second-best tenderer will have the opportunity to do so. However, obtaining a permit does not guarantee project construction, as additional approvals are required.
Current Offshore Wind Landscape
Currently, Finland operates one offshore wind farm—the 42 MW Tahkoluoto facility, located off the west coast in icy sea conditions. In May 2024, the government rejected 16 exploitation permit applications, citing the need to finalize legislation for offshore wind development.
This new law marks a pivotal moment in Finland’s renewable energy journey, aligning with its goals for sustainable energy and climate action.