On April 20, 2010 the Finnish working group on climate and energy policy agreed on their recommendations for how the country would meet it’s EU renewable energy obligations of 38% by 2020. The proposed program is limited to wood biomass and wind energy.
The proposed tariff for wind energy of €0.0835/kWh is expected to be implemented in 2011. The wind tariff, while competitive with its European peers, is for a limited contract term of 12 years. However, projects built during the first two years of the program will receive a higher payment of €0.105/kWh for a period of three years after which they will receive the lower payment for the remainder of the term.
The government’s modest objective is 6 TWh of wind generation by 2020. This is equivalent to about 3,000 MW of onshore wind development.
The Finnish proposal uses a bonus system where the government makes up the difference between the wholesale price and the tariff price.
Currently, there is only 275 MW of wind capacity operating in Finland.
