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Finland is nearing its RES-E target for 2010, and continues to adjust and refine its energy policies in order to further enhance the competitiveness of RES. Through subsidies and energy tax exemptions, Finland encourages investment in RES. Solid biomass and large-scale hydropower plants dominate the market, and biowaste is also increasing its share. Additional support in the form of FITs based on purchase obligations or green certificates is being considered for onshore wind power.



Finland has taken the following measures to encourage the use of RES-E:

  • Tax subsidies: RES-E has been made exempt from the energy tax paid by end users.
  • Discretionary investment subsidies: new investments are eligible for subsidies up to 30 per cent (40 per cent for wind).
  • Guaranteed access to the grid for all electricity users and electricity-producing plants, including RES-E generators (Electricity Market Act – 386/1995).


Table I.8: Key Support Schemes in Finland

Technology 2003 - present
Tax reimbursement
Wind and forest chip 6.9
Recycled fuels 2.5
Other renewables 4.2



By 2025, Finland wants to register an increase in its use of renewable energy by 260 PJ. With regard to RES-E, the target to be met is 31.5 per cent of gross electricity consumption in 2010. With figures of 24.7 per cent in 1997 and 28.16 per cent in 2004, Finland is progressing towards its RES-E target of 31.5 per cent in 2010.

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