Finland’s offshore wind energy sector is poised for significant growth, with the country’s government setting ambitious green targets for 2035 and initiating the first 6GW of auctions. This is according to the latest Aegir Insights analysis by Maria Holm Bohsen. Despite a slow start, Finland has all the ingredients for a thriving international offshore wind play, including a technical potential of over 310GW, a fully developed coastal industrial sector, and modern grid infrastructure.
The Finnish government’s commitment to offshore wind energy is evident in its regulatory framework, which includes territorial waters managed by the state-owned Metsähallitus, where auctions are planned, and an economic exclusive zone that uses an open-door model not tied to government-planned auctions.
Finland’s vision of becoming a future green hydrogen market leader is fuelling much of the offshore wind ambition. The country aims to generate at least 10% of the EU’s total output by 2030, potentially bringing in €16-34bn a year in revenue into the Finnish economy and creating some 60,000 new jobs.
Three key zones are being scoped for offshore wind development: the far northern Bay of Bothnia, the Bothnia Sea near Pori, and the Gulf of Finland near Helsinki. However, there are challenges, including the absence of a subsidy scheme for projects, property tax implications, and constraints due to defense and shipping sector demands.
Despite these challenges, the upcoming auctions could radically reshape the future for Finnish offshore wind as international wind majors join the merchant market fray, potentially supercharging Finland’s green hydrogen dreams.
Source: Aegir Insights