EY: Finland’s PPA market attracts corporates
Finland’s wind-energy market is increasingly attracting corporate energy buyers, as they take advantage of cost reductions and a healthy wind resource in the Nordic country. It is reported in EY.
In Finland, renewable energy sources represent about 40 percent of energy end-consumption. The aim set in the National Energy and Climate Strategy to 2030 is to increase the use of renewable energy so that during the 2020s, its share in energy end-consumption rises to more than 50 percent.
Neoen last year bought 80% ownership of a Finnish wind farm, Mutkalampi, from its local development partner Prokon Finland – a subsidiary of German renewable energy cooperative Prokon Regenerative Energien. The plant will eventually have a generation capacity of up to 250MW. Tech giant Google has signed a 130MW power purchase agreement (PPA) with Neoen and Prokon for energy from the Mutkalampi facility, which is set to come online by the end of next year.
Photo be Neoen
This followed on from another wind farm project in Finland for the Neoen-Prokon partnership, an 81MW plant in Hedet, which began generating power this year. Google signed a PPA for the output of electricity from that plant as well.
In one of the largest recent deals, Finnish pulp and paper firm UPM bought 4TWh of power from the Karhunnevankangas wind farm in western Finland, under development by German developer WPD. The 192MW wind farm is expected to be operational in 2022. Announced in February, the PPA will enable UPM to cut its carbon dioxide emissions by 5%.
Also, in February, Lundin Petroleum struck a PPA to take power from the planned 132MW Metsälamminkangas wind farm in northern Finland, developed by OX2. The project is due to be completed by the end of 2021.
The following month, Norway-based energy trader Statkraft and Finnish chemical company Kemira signed a 10-year PPA for the latter to take around 44GWh of power each year from Statkraft’s 1.06GW Fosen Vind complex. In addition to physical power, the deal includes the sale of guarantees of origin.
Finally, in January, IKEA announced it had bought the 30MW Ponsivuori wind farm in the country from local developer OX2. It followed a 2018 agreement under which the home-furnishing giant agreed to buy four projects – Ponsivuori, Verhonkulma, Långmossa, and Ribäcken – totaling 107MW, once they are completed. Those four farms represent one of the largest subsidy-free platforms in the region.
About the latest technological progress in the field of wind energy and their impact on energy models in times of crisis you will learn on July 20-24 at the Digital Energy Innovation Week EN.Novation.
The premier digital conference devoted to the emerging European new energy markets of renewable energy, energy storage and energy efficiency that will be held 5 days for professionals around the globe.
July 20 >> Key challenges for renewable energy during and after the pandemic
July 21 >> Solar energy in the times of pandemic
July 22 >> Wind energy in the times of pandemic
Jule 23 >> Bioenergy and hydrogen technology
July 24 >> Growing European renewable energy markets, entry points
Order your access to the energy innovation week in online and participate in the biggest Energy Party in Zoom: https://en-novation.com/
Ministry of Economic Affairs and Employment of Finland