Rules for offshore wind power projects in the exclusive economic zone to be specified before the exploitation permits

The Finnish Government decided not to grant exploitation rights applied for offshore wind power projects in the exclusive economic zone. The Government considers it important to define the rules for exploitation of the exclusive economic zone in the current legislative project before granting any rights or permits. The Ministry of Economic Affairs and Employment announced the decision on 2 May 2024.

The Government’s goal is to select the first areas for wind power projects in the exclusive economic zone and launch the first tendering process already at the end of 2025.

The current Finnish Act on the Exclusive Economic Zone does not recognize the special features of offshore wind power generation and does not provide any framework for decision-making, for example, in a situation where several companies are interested in the same sea area.

At this stage, the Government justified its negative decision on applications for exploitation rights with the aim of creating a predictable, clear and balanced investment and operating environment. When granting permits, the Government also wants to take into account the overall benefit for society.

In addition, granting the requested exploitation rights at the moment would have undermined the guiding effect of the Act on the use of the new Exclusive Economic Zone currently being prepared.

The Government aims to make Finland a pioneer in clean energy

The legislative project concerning offshore wind power projects in the exclusive economic zone is part of Prime Minister Orpo’s Government Programme. The Government aims to make Finland a pioneer of clean energy in Europe and to multiply electricity production in Finland. The Government’s starting point is that offshore wind turbines are built on market terms.

The act to be passed is intended to establish procedures for the allocation of areas in the exclusive economic zone. At the same time, the permits required for offshore wind power projects in the exclusive economic zone will be defined and the exclusive economic zone will be brought in line with territorial waters in terms of taxation and payment practices.

Metsähallitus manages state-owned land and water areas and thus also sea areas within territorial waters. Metsähallitus’ mandate to act does not apply to the water areas within the exclusive economic zone. A representative of Metsähallitus is contributing to the ongoing legislative work.

The term of office of the working group on offshore wind power project rules ends at the end of June 2024.

Further information:
Ministry of Economic Affairs and Employment ‘s press release 2 May 2024
https://tem.fi/en/-/regulation-of-wind-power-in-the-exclusive-economic-zone-to-be-specified-government-refuses-applications-for-exploitation-rights-submitted-under-the-current-act

Government decision 2 May 2024: Government consent to activities aiming at the economic exploitation of the Finnish exclusive economic zone (available in Finnish only)
https://valtioneuvosto.fi/paatokset/paatos?decisionId=1180