The Finnish government has recently taken a significant step towards harnessing offshore wind power by granting research permits for three projects within Finland's exclusive economic zone. With growing interest from offshore wind developers in Finnish sea areas, the government aims to assess and develop procedures and legislation that cater specifically to offshore wind projects. While the current profitability of offshore wind in Finnish waters remains a challenge, technological advancements and decreasing costs may pave the way for a transformative shift in the coming years. However, the legislative framework surrounding offshore wind research and construction permits requires careful consideration, particularly regarding the allocation of sea areas and prioritization of project developers.
Research Permits and Future Development:
The companies Finland Oy and OX2 Finland Oy have been awarded research permits for offshore wind projects west of Jakobstad and Hailuoto. These permits enable them to conduct crucial pre-construction studies, such as environmental impact assessments, in preparation for potential construction permits. The Finnish government will determine the recipient of construction permits following the completion of the necessary assessments. Additionally, all projects are subject to permits in accordance with Finland's Water Act, ensuring adherence to environmental regulations.
Legislative Challenges and Risk Factors:
The exclusive economic zone, being an international sea area, necessitates a careful evaluation of the existing legislation's applicability to offshore wind development. Historically, permit processes in the economic zone have primarily focused on infrastructure projects, lacking comprehensive coverage for the specific characteristics of offshore wind. Moreover, the absence of solutions for situations where multiple operators express interest in the same sea area adds complexity to the process. This uncertainty presents a significant financial risk for project developers, as pre-construction studies can require investments of several million euros. Legislative risk further compounds the situation, as research permits can be granted to multiple operators for the same area without guaranteeing construction priority to the conducting operator.
Government Initiatives and Future Outlook:
Recognizing the evolving offshore wind landscape, Finland's Ministry of Economic Affairs and Employment, along with other relevant ministries, are committed to assessing and developing procedures and legislation specifically tailored to the exclusive economic zone and offshore wind projects. While offshore wind power is currently not economically viable in Finnish sea areas, advancements in technology and cost reductions hold the potential to change this in the coming years. It is crucial to acknowledge that offshore wind projects typically involve long development periods ranging from 5 to 10 years, highlighting the need for proactive measures to support the industry's growth and investment in the future.
With the granting of research permits for three offshore wind projects in Finland's exclusive economic zone, the country is poised to explore the immense potential of offshore wind power. However, the legislative framework requires careful evaluation and development to address the unique challenges posed by offshore wind development, including allocation of sea areas and construction prioritization. By actively assessing and refining procedures and legislation, Finland aims to create an enabling environment that encourages offshore wind investment and paves the way for a sustainable and prosperous future in renewable energy.
