Legal and Policy Framework for Power Transmission and Wind Power Generation in Finland

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Abstract

Pursuant to the Electricity Market Act (588/2013), the transmission system operator (TSO) is responsible for developing and maintaining the transmission network in Finland. The TSO with system responsibility is also responsible for the functioning and reliability of the power system.The TSO should develop the network according to its customers' reasonable needs and to guarantee the efficient functioning of the network and the preconditions for efficiently functioning electricity markets. The connection cables are the responsibility of wind farm developers. The wind farm developer has to negotiate with the TSO in the early stages of the project in relation to the connection. The details of the connection are agreed in the Connection Agreement. The wind power developer bears the costs resulting from the construction of its own cables and facilities. If additional structures or equipment are needed to enable the connection, the connectee is responsible for covering the costs of the construction. The costs of the transmission network operation are borne by the TSO of which economic regulation is based on a rate-of-return model. For the grid infrastructure, several authorisations can be required. The process is slightly different in the territorial waters and in the Exclusive Economic Zone of Finland. In the case of maritime cables, the permit under the Water Act (587/2011) usually regulates the project in a comprehensive way in both territorial waters and the EEZ. In general, there is no concentration effect for the authorization process in general.Currently, there are no specific political strategies regarding offshore transmission or offshore wind power. However, there is a general wind power target of 6 TWh by 2020 and 9 TWh by 2025. The current Government Program and the Energy and Climate Strategy for 2030 sets general targets for renewable energy deployment. The reserved quota of the current wind power support system has been used in full, and does not offer support to new projects. A new technology-neutral operating aid for renewable energy in the form of a tendering process is planned to be put in place. The tenders will be arranged in 2018­–2020. The authorization procedure of offshore wind power differs in territorial waters and in the Finnish EEZ. In territorial waters the following assessments and permits could be needed: land use planning, the EIA process, Natura Assessment, building permit, environmental permit, water permit and aviation obstacle permit. In the EEZ, an EIA process, a water permit, and an environmental permit can be required. Additionally, a consent form the Council of State could be needed. Non-binding maritime spatial plans will be drafted for the Finnish EEZ by the end of March 2021.The developer generally bears the costs for the planning, the assessments, and the permit procedure. If any of the required permits are not granted or the spatial plan required in territorial waters is not accepted, this could ultimately lead to a total loss of investment.

Details

Original languageEnglish
PublisherAalto University
Number of pages89
ISBN (Electronic)978-952-60-7906-6
ISBN (Print)978-952-60-7905-9
Publication statusPublished - 2018
MoE publication typeD4 Published development or research report or study

Publication series

Name Aalto University publication series SCIENCE + TECHNOLOGY
PublisherAalto University
No.2/2018
ISSN (Print)1799-4896
ISSN (Electronic)1799-490X

    Research areas

  • wind power, offshore wind power, transmission, energy production, permitting

ID: 21466982