Finnish government makes key decisions for Korsnäs and Tahkoluoto offshore wind farms

The Finnish government has granted the state-owned company Metsähallitus permission to lease state-owned coastal properties for wind energy production at the Korsnäs offshore wind farm project and the expansion project of the existing Tahkoluoto offshore wind farm.

As part of the Korsnäs project, the Finnish government has also authorized recapitalization and investment of up to €10 million in Korsvind Ab Oy. It is a project company wholly owned by Metsähallitus. The government also agreed to transfer shares in the project company to the entity selected as a partner in the Korsnäs offshore wind farm project.

“The two now approved projects are also important for the state’s finances, as income from renting these areas will eventually flow into the state coffers”, said the Minister of Agriculture and Forestry, Antti Kurvinen.

The Korsnäs offshore wind farm project is being developed in Finnish territorial waters with a nominal energy production capacity similar to that of the Loviisa nuclear power plant. The total cost of the project is estimated at €1.5-2.5 billion.

The expansion of the Tahkoluoto offshore wind farm will increase its capacity from the current 10 wind turbines to 43 wind turbines and expand the wind farm’s area by about 14,400 hectares.

Metsähallitus’ role in offshore wind projects is to identify suitable sites for wind energy production in the country’s offshore areas, plan them, and then transfer the project rights to other operators through a competitive bidding process. Metsähallitus does not participate in energy production, neither on its own nor through its subsidiaries.

In December 2021, The Committee of Economic Ministers approved an auction model for selecting operators for new projects in public waters. Of great interest was also the exploitation of Finland’s Exclusive Economic Zone (EEZ), which lies outside public waters and is under the Ministry of Economy and Employment, for wind energy. However, legislative changes are needed to develop the economic zone, the Ministry of Agriculture and Forestry points out.