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Finland's renewable energy market is flourishing, with renewables accounting for over 43% of the country's total electricity generation in 2022. This is projected to reach 51% by 2030, driven by strong government support, declining costs of renewable energy technologies, and growing consumer demand for clean energy. Finland's commitment to renewable energy is evident in its ambitious target of achieving net-zero emissions by 2035.
The Finnish government is a major purchaser of renewable energy, with a target of procuring 100% of its electricity needs from renewables by 2030. The government actively supports the sector through various procurement initiatives, including:
The Renewable Energy Act, which sets targets for renewable energy capacity and consumption
The National Energy and Climate Strategy, which outlines the government's plans for achieving net-zero emissions
The Finnish Innovation Fund for Sustainable Energy (KITE), which provides funding for renewable energy projects
The Finnish government procures a diverse range of renewable energy products and services, primarily focusing on:
Hydropower: Hydropower is the largest source of renewable energy in Finland, accounting for over 40% of the country's total renewable electricity generation.
Bioenergy: Bioenergy, particularly from wood, plays a significant role in Finland's renewable energy mix, accounting for around 20% of the country's total renewable electricity generation.
Wind energy: Wind power is expanding rapidly in Finland, with several large-scale wind farms commissioned across the country.
Solar energy: Solar energy is gaining traction, particularly in residential and commercial applications.
The top authorities overseeing renewable energy procurement in Finland are:
The Ministry of Economic Affairs and Employment (TEM): TEM is responsible for energy policy and planning, including renewable energy development.
The Finnish Environment Institute (SYKE): SYKE provides environmental expertise and research support to the government.
The Energy Authority (Energiavirasto): Energiavirasto is responsible for regulating the energy market and ensuring compliance with renewable energy targets.
Major companies that have secured significant renewable energy procurement contracts in Finland include:
Fortum: Fortum is a leading energy company with a diversified portfolio of renewable energy assets, including hydropower, bioenergy, wind, and solar.
PVO Power: PVO Power is a major producer of renewable energy, with a focus on hydropower and bioenergy.
Helen Oy: Helen Oy is an energy company that provides electricity, heat, and cooling services in the Helsinki region, with a growing portfolio of renewable energy assets.
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