Finland Times

 

File Photo Lehtikuva.

The Ministry of Employment and the Economy on 18 June circulated for comments the draft of a government proposal for amending the act on production subsidy for electricity produced from renewable energy sources.

 

The proposal does not suggest changes to the total capacity of 2,500 megavolt-amperes (MVA) of wind power plants accepted in the feed-in premium scheme or to the production subsidy for electricity produced in wind power plants that have been accepted in the scheme, said a press release of the ministry.

 

The proposal aims at a controlled closure of the feed-in premium scheme regarding wind power as the total capacity of 2,500 MVA set to wind power plants has now effectively been reached.

The deadline for comments is July 30 and the request for comments can be found online.

 

The acceptance of a wind power plant in the feed-in premium scheme would in future require a so-called quota decision, according to the proposal.

 

Further quota decisions would not be made, once the total nominal output of projects accepted in the feed-in premium scheme and projects granted a quota decision exceeds the limit of 2,500 MVA for the first time.

 

The quota decision for a project would be valid until November 2017 at the most.

 

For an offshore demonstration wind power plant, which has received investment aid, the quota decision would be valid until November 2018.

 

More capacity would not be released from the total quota, even if a project were not implemented within the time limit.

 

Along with the proposal, the increase in state expenditure caused by the increase in wind power capacity can be halted in 2018, when the state will disengage from the feed-in premium scheme described by the act on production subsidy as regards wind power generated electricity.

 

The wind power capacity will start to exit the feed-in premiums scheme from 2023 and the need for subsidy will decrease respectively.

 

After 2030 production subsidy would no longer be paid as it can be received for a period of 12 years at the most.

 

Savings will be made as not all wind power plants that have been granted a quota decision will be built within the time limit.

 

The amount of production subsidies paid is based on the actual production of electricity.

 

The administrative amendment to the feed-in premium scheme as regards wind power plants will not endanger the 2020 renewable energy target of 38 per cent set for Finland in the EU, the release said.

 

The objective is to present the government proposal to parliament at the latest when the parliamentary term begins in the autumn. The amendment is intended to enter into force during autumn 2015.

 

Preparation for the new subsidy scheme based on the government programme will start in autumn 2015.

 

The subsidy scheme will encourage increase in renewable energies and will be based on technology neutrality and order of economic affordability.