The Finnish Government’s Committee on Economic Policy has approved a proposal for an auction model to be applied to the leasing of public water areas for offshore wind development.
The auction model is for waters controlled by Metsahallitus, which manages state land and waters, for offshore wind projects.
The auction is expected to take place 2023/2024 and will cover three to four offshore wind areas.
The aim of the proposal is to accelerate the market-based development of offshore wind power.
Interest in developing Finland’s offshore wind resources has increased as technology costs have come down, said the ministerial committee.
Most of the interest concerns waters under the control of Metsahallitus.
“In the coming decades, we will need a lot more clean electricity for the needs of industry and society as a whole.
“It is therefore of paramount importance to create a clear and predictable regulatory environment for future offshore wind investments,” said Mika Lintila, minister of economic affairs.
The operating model advocated by the ministerial committee implements the objectives of the Government Programme and Metsahallitus’ ownership policy guidelines, according to which Metsahallitus’ tasks also include creating a capacity for business operations.
The proposal also implements Finland’s international commitments and takes into account both environmental considerations and sustainability and environmental risk management.
Operating conditions for merchant shipping and national defence have also been taken into account in the proposal.
The auction model does not apply to the province of Aland, nor to offshore wind projects located outside territorial waters in Finland’s exclusive economic zone.
Metsahallitus will initially carry out preliminary studies in the waters and, on the basis of these, select the areas to be auctioned.
Depending on the significance of the project, the Finnish Government or the Ministerial Committee on Economic Policy will approve the areas to be leased and the terms of the auction before the auction is launched and may even set minimum lease prices.
Metsahallitus’s role is to act only as a promoter of projects.
The winner of the auction is responsible, among other things, for applying for the necessary permits and, after the contracts have been signed, can develop the area in an appropriate manner.
The winner or winners of the auction will be granted exclusive rights to project development, the application for permits for construction, the construction of offshore wind power and the production of electricity in the sea area concerned.