Metsähallitus launches auctions concerning large-scale offshore wind power projects
On 23 November 2023, the Government adopted a resolution on launching an auction procedure concerning offshore wind power sites located in the public water areas of Finland.
The offshore wind power sites to be auctioned are located in public water areas governed by Metsähallitus in the regions of Ostrobothnia and North Ostrobothnia. The auction procedure will be launched in accordance with the model prepared in 2021.
Metsähallitus will select the project partners by competitive tendering, lease the site to the selected partner and sell the project rights concerning the development of the site, construction and production of renewable energy. The responsibility for the application for the necessary permits rests with the partner. The maximum lease term is 50 years.
In two areas (Pyhäjoki/Raahe and Närpes) the auction procedure will get started by the end of this year and preparations will be made for the tendering procedures in three other areas (Siikajoki/Hailuoto, Raahe/Siikajoki and Kristinestad) in cooperation with municipalities. After the auctions, the Government will decide on granting the actual use rights to project partners selected for each site.
The water areas concerned are located in areas designated for wind power production in regional planning. Preliminary opportunities to connect to the main grid and the impacts on merchant shipping, operating conditions of the defence forces and landscape have been taken into account when selecting the sites.
Projects boost clean transition
“Offshore wind power can significantly increase renewable and emission-free electricity production in Finland. The projects will promote the clean transition and create a completely new sector in Finland, attract international investments and promote the goals of the Government Programme,” says Minister of Agriculture and Forestry Sari Essayah.
The total surface area of the five offshore wind power sites to be included in the auction procedure is about 860 km2 and their calculated maximum capacity is about 7,500 megawatts. The maximum number of wind turbines that can be built in the areas is about 500. The investment value of one offshore wind farm is EUR 3–4 to billion. Revenue to the state will be generated from both leasing the sites and selling the project rights. The municipalities will benefit as well. They will collect real estate taxes on offshore wind power sites in the water areas, and the projects will also have significant employment effects.
“This resolution is of a historical scale and it will take Finland towards a strong growth in clean energy production. The wind power from the sites to be auctioned is expected to increase Finland’s annual electricity production by more than a third. Increasing electricity production is a key means to promote investments in the processing industry targeted to Finland,” says Minister of Climate and the Environment Kai Mykkänen.
The ministers would like to thank Metsähallitus for its thorough preparation, which makes it possible to launch the auctions. The development of offshore wind power is part of the business operations of Metsähallitus, and granting the use rights of the sites for wind power purposes is one of its statutory duties. The operators are selected through an auction procedure by competitive tendering in such a way that the process is just, transparent, impartial and competition neutral and ensures the overall interest of the state.
Inquiries at the Ministry of Agriculture and Forestry
- Leena Arpiainen, Ministerial Adviser, tel. +358 295 162 238
- Erno Järvinen, Head of Forests and Bioenergy Unit, tel. +358 295 162 150
- Jouni Koskela, Special Adviser to the Minister, tel. +358 50 339 9334
Inquiries at the Ministry of the Environment
- Lyydia Ylönen, Special Adviser to the Minister, tel. +358 50 476 1341
emails: [email protected]