Operators in energy-intensive industries can apply for electrification aid in 2022−2026

Electrification aid can be granted to energy-intensive industries, i.e. industries that use a large amount of energy, in 2022–2026. The practices related to the electrification aid are defined in the government decree. Companies operating in the sectors entitled to the aid must apply for the 2022 aid by the end of September.

The Government issued the decree on the electrification aid for energy-intensive industries on 8 July 2022. The decree complements the act that entered into force on 1 July 2022. The aid will compensate certain energy-intensive industries for indirect costs caused by emissions trading that affect the price of electricity. The objective is to safeguard the cost competitiveness of industry and prevent the risk of carbon leakage. The aid targets costs that non-EU competitors of companies operating in the international market do not have. It is estimated that there are just over 30 companies and about 70 plants entitled to the electrification aid in Finland.

The decree now issued defines the way the companies can apply for the aid, how the amount of aid is calculated and how its use is monitored. The decree also lays down the terms of development measures to promote carbon neutrality. The decree will enter into force on 11 July 2022. In the supplementary budget for 2022, a total of EUR 87 million was granted for the electrification aid. An annual amount of EUR 150 million has been reserved for 2023–2026. 

The European Commission must approve Finland’s notification of the aid scheme in accordance with the law and decree on electrification aid before the aid scheme can be implemented.

Electrification aid for 2022 must be applied for by the end of September

The Energy Authority is responsible for granting the electrification aid. The aid is granted to companies on the basis of the data for the year under review, i.e. the previous calendar year. 

Applications for aid for 2022 must be submitted to the Energy Authority by 30 September 2022 at the latest. Further information concerning the opening of the application process will be provided in August. In the future, the applications must be submitted by the end of March following the year under review.

At least half of the aid must be used on promoting carbon neutrality 

The companies must submit to the Energy Authority a plan on using the aid and information about development measures promoting carbon neutrality by the end of the year following the year of granting the aid.

Acceptable costs of the development measures include, for example, investments, research and development measures, and the procurement of renewable energy. The company must provide a breakdown of the costs of development measures for accounting purposes in order to enable monitoring of the aid. 

Inquiries:
Juhani Tirkkonen, Deputy Director General, Ministry of Economic Affairs and Employment, tel. +358 295 062 140 (in July available on 8 July)
Juho Korteniemi, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 054 (available until 22 July)
Eriika Melkas, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 134 (available 18–22 July)
Matias Ollila, Special Adviser to Minister of Economic Affairs, tel. +358 295 047 412