On 19 December 2024, Finnish President Alexander Stubb approved the Act on Offshore Wind Power in the Exclusive Economic Zone, announced by the Ministry of Economic Affairs and Employment. The Act aims to promote offshore wind power, clarify project regulations, and ensure fair and transparent rights for exploitation.
Offshore wind projects are still in the planning stages, and this legislation will create a more predictable development environment while ensuring compatibility with activities like maritime transport and fishing. The Act supports the Government Programme’s goal of clarifying rules for offshore wind power in Finland’s exclusive economic zone and will take effect on 1 January 2025 without affecting Finland’s territorial waters.
Government to select offshore wind power areas
Finland’s exclusive economic zone (EEZ) is an area where the State has the right to exploit resources economically. Under the new Act, the Government can identify suitable areas within the EEZ for offshore wind power and manage competitive bidding for these locations. This approach ensures better coordination of maritime activities while considering environmental factors and other marine uses like transportation and fishing.
The tendering process includes three steps: the Government selects offshore wind power areas, the Energy Authority conducts the competitive bidding, and the winning bidder receives exclusive rights to apply for an exploitation permit for that area. This permit allows the company to use the area for a specified duration, though additional licenses are required for project implementation.
Recent amendments to the tendering model allow the second-best bidder to apply for an exploitation permit if the winner does not. The restriction preventing one bidder from winning multiple tenders has also been removed. The Act clarifies applicable national legislation to ensure that the selected company can effectively carry out the project.
