7 solar park projects get €27.5m Luxembourg-funded aid

Seven solar park projects in Finland have been granted a total of EUR 27.5 million through the EU’s Renewable Energy Financing Mechanism (RENEWFM), said the Ministry of Economic Affairs and Employment in a press release on Thursday.

Under the mechanism, solar power will be built in Finland with funding from Luxembourg. The scheme will strengthen and diversify the production of renewable energy in Finland while promoting the achievement of the national targets for renewable energy in Luxembourg.

The projects that will be funded were selected in a competitive tendering organised by the European Climate, Infrastructure and Environment Executive Agency (CINEA). One of the funding agreements was signed in March and the remaining six in May.

Supported projects in Finland are:

Niittyneva Solar Park in Nivala (EUR 837,000): A 8 MWp solar power plant is expected to start electricity production in February 2025. The estimated amount of energy produced by the plant will be around 7.2 GWh per year.

Ohrasuo Solar Park in Savonlinna (EUR 990,000): A 7.8 MWp solar power plant is expected to be operational in April 2025. It will produce approximately 7.2 GWh of electricity per year.

Koirivaara Solar Park in Tohmajärvi (EUR 5.2 million): A 30 MWp solar power plant is expected to start electricity production in January 2026. Its annual production estimate will be 27.2 GWh of electricity.

Honkisaarenneva PV Solar Park in Kuortane (EUR 4.1 million): A 33 MWp solar power plant will be located on a peat bog and utilise the latest solar panel technology. Its annual production estimate is 30 GWh of electricity.

Kuortane Solar PV production plant (EUR 9.9 million): A 74.03 MWp plant will be located in Leppälänkylä, in an area currently used for peat production. Its expected annual production will be 67.6 GWh.

Pöytyä Solar (EUR 4 million): A 40.2 MWp solar power plant will be built in an area of 58.5 hectares consisting mostly of agricultural land. The annual production of the power plant is expected to be 40.16 GWh.

CINEA has already signed a funding agreement with Oulun Seudun Sähkö on a 20 MWp solar park in Utajärvi for EUR 2.3 million in March 2024. The annual production of the planned solar park will be 20 GWh per year. The construction of the plant is due to be finished by the end of 2025.

The State of Luxembourg finances projects located in Finland through the EU’s Renewable Energy Financing Mechanism (RENEWFM). As a “contributing country”, Luxembourg will receive 80 per cent of the renewable energy production of the projects for 15 years in the form of statistical transfers. Finland, as a “hosting country”, will permit the construction of the projects funded by the mechanism in its territory and benefit from the investments and the energy generated. National legislation will apply to the projects to be supported in all respects.

RENEWFM provides the Member States a way to undertake joint projects managed by the European Commission. Participation is voluntary for the Member States. The Commission and CINEA manage the call for applications, payments and other practical matters directly with the project developers. The Ministry of Economic Affairs and Employment serves as the coordinating authority for the financing mechanism in Finland.

The agreement on participation in RENEWFM signed by Finland and Luxembourg at the end of February 2023 was the first of its kind in the EU.

Finland has also signed a commitment to participate in the next call for applications under the renewable energy financing mechanism, which is expected to be launched this summer.