The Finland’s feed-in premium scheme for renewable electricity production (wind power, biogas, forest chips and wood fuels) entered into force in 2011 (Act No. 1396/2010). The scheme was amended several times since its adoption, and more recently by Act No. 441/2018.
The changes includes a legal framework for opening up the market for production of renewable electricity with a new tender- based premium scheme. The Energy Agency opened up the first tendering round in autumn 2018 from 15 of November to 31 of December. The tenders up for offer will be 1.4 TWh annually.
The scheme is technology neutral for new producers of electricity from wind, solar, biogas, biomass wood fuels and wave power. The premium offered is capped at € 53.5 MWh (§ 32 Act No. 1396/2010),The market price is determined in yearly quarters.
Nota. Since 2013 the support paid for use of forest chips in electricity production has been dependent on price for EU emissions allowance and tax rate on peat, as it earlier was dependent only on price for EU emissions allowance. The support for use of forest chips has also been modified so that the aid level for electricity produced with forest chips will be reduced by 40 %, if the forest chips are produced from industrial roundwood (i.e. logs or pulpwood, BDH >16 cm) originating from a felling site of large-sized trees.
The production support scheme consists of two different premiums:
- A sliding premium tariff for new investments in wind power, power from biogas (landfill gas excluded) and power from small CHP power plants using wood fuel (hereinafter “the wood fuel plant”). The tariff is dependent on the market price of electricity, i.e. the difference between the target price in the legislation and the spot price of electricity. Heat premium is paid on top of the basic tariff for biogas and wood fuel plants that produce also heat with certain efficiency.
- A sliding premium tariff for electricity produced from wood chips. This tariff is dependent on the EU emissions allowance price and tax rate on peat. The tariff compensates on the difference of running costs of using peat and wood chips in power and heat production. As the tariff doesn’t compensate capital costs of the power plant the tariff is paid also to existing power plants. Also this support scheme contains elements that encourage the efficient production of electricity and heat in CHP units.
Support for wind power was closed the end of 2017.