Energy Finland invests in wind power with huge sums of money – Eastern Finland, shackled by the Defense Forces, follows from the sidelines as the small coasts of the west coast collect tax revenue

The largest wind farms receive more than one million euros a year in tax revenue from power plants. The same municipalities are the winners in the next few years of investment.

In Finland an unprecedented wave of wind power investment is underway. A record number of new production capacity will be completed this year. There are several billion euros worth of power plants under construction or just on the verge of an investment decision.

For many municipalities, the investments promise significant real estate tax revenues.

According to the project register maintained by the Finnish wind power association, an industry interest group, 32 wind farms are currently under construction in Finland. They will have a total of 461 power plants and a total production capacity of 2.4 gigawatts.

Coarse the rule of thumb in onshore wind power is that a one-megawatt power plant costs about a million euros, says professor of energy technology Esa Vakkilainen Lappeenranta – Lahti University of Technology. The costs vary from site to site and are significantly affected by what kind of infrastructure, such as roads, foundations and power lines, the park requires.

With this rule of thumb, it can be estimated that there is more than EUR 2 billion worth of new wind power under construction. The amount can be compared to Metsä Group’s recently announced expansion of the Kemi pulp mill: the EUR 1.6 billion investment is the largest in the history of the forest industry in Finland.

Read more: The Kemi pulp mill brings labor and export earnings, but is it the best way to use wood?

The majority of power plants under construction are generated on market terms, without state support.

Yet a larger number of parks are awaiting a construction decision. A final investment decision awaits 66 parks with an approved formula and a building permit issued by the municipality. 3.6 gigawatts of new production capacity, more than 800 power plants, are planned to be built on them.

If investors decide to start construction, it would mean an investment of more than EUR 3 billion over two years, roughly estimated. However, the implementation of the projects is uncertain.

There are more than 10 gigawatts of projects in preparation for an even earlier stage, but the companies driving them still have many hurdles to overcome before construction could begin. For example, the Tornio Karhakkamaa project with its 300-meter towers has aroused strong opposition among the residents of the area.

According to the Wind Power Association, only 30 percent of the projects that have passed the feasibility study will eventually be completed.

Investment boom means a significant boost to the economy of many municipalities.

The municipality may charge a 3.1 percent property tax on the wind farm. The more power plants there are and the bigger and newer they are, the higher the tax revenue.

According to data collected by HS, Finland’s largest wind farms estimate that they will collect more than one million euros in property tax on wind farms this year.

Income can be significant, especially for small municipalities.

One such municipality is Simo at the bottom of the Bay of Bothnia. There are 37 operating wind farms in the municipality, of which the municipality expects property tax revenues of almost 900,000 euros this year.

The amount does not sound very large, but for a municipality of less than 3,000 inhabitants, it is half of the property tax revenue and almost seven percent of all tax revenue.

“The return on property tax from wind farms currently corresponds to almost two percent of the municipal tax,” says the mayor Vivi Marttila.

Simon’s economic situation is not gone: the population is shrinking and there are years of deficits behind it.

“Without wind power, we would be in pretty trouble.”

In the next few years the importance of wind power for the municipality of Simon is only growing.

This year, the municipality will begin erecting 27 power plants. Once zoned and licensed, a second set of 27 power plants awaits the final investment decision. In addition, there are more than 50 power plants in the earlier preparation phase.

Indeed, the majority of investments in the next few years are flowing into traditional wind power concentrations on the West Coast, according to data collected in the project register.

Kalajoki currently receives the largest property tax tax on wind farms, EUR 1.75 million per year. 83 new power plants are already under construction there. Pyhäjoki, Ii and Kristiinankaupunki can also expect a significant increase in property tax revenue in the next few years.

Investment the westward orientation is partly due to good wind conditions and partly due to the positive attitude of residents and decision-makers in the established wind farms.

“What has been crucial is that the council has been positive for wind power from the start. This is not the case in all municipalities in Lapland. We have the promotion of wind power as a strategic goal, ”says Simon Mayor Marttila.

Also There would be suitable areas for wind power in Eastern Finland, but there the project developers have encountered a special local problem, the opposition of the Defense Forces.

According to the Defense Forces, wind farms are hampering the operation of radars near the eastern border. Obtaining an opinion from the Defense Forces is the first step in every wind power project, and the project will not proceed without a positive opinion.

Thus, there are only five ongoing projects on the strip from Kymenlaakso to North Karelia, all at an early stage. Municipalities in the region have been snaked by the fact that investment euros are going from side to side.

A solution to the radar problem in Eastern Finland is currently being considered in a study funded by the Government. It is expected to be completed in the summer.

For the time being, wind power companies prefer to focus on other directions, says the CEO of the wind power company OX2 Teemu Loikkanen.

“Some projects have been tried in Eastern Finland, but when it has not worked, there have not been terrible attempts there. It does not seem sensible to spend time and resources on projects that are not progressing. ”

Half of the euros will remain in Finland

Although There are no well-known turbine manufacturers like Siemens or Vestas in Finland, a significant part of the cash flow from power plant investments goes to Finnish companies.

Esa Vakkilainen, Professor of Energy Technology at Lappeenranta – Lahti University of Technology, was involved in a study published about ten years ago, in which the average degree of domestication of wind power investments was estimated at 50–60 per cent.

“I think we are still in roughly the same readings,” Vakkilainen says.

The construction of the power plant is linked to an extensive supply chain involving Finnish or Finnish companies. The steel company SSAB makes steel for towers, ABB inverters and Ahlstrom-Munksjö fiberglass for blades.

They are also locally employed in infrastructure construction and, at a later stage, maintenance and service.

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source https://pledgetimes.com/energy-finland-invests-in-wind-power-with-huge-sums-of-money-eastern-finland-shackled-by-the-defense-forces-follows-from-the-sidelines-as-the-small-coasts-of-the-west-coast-collect-tax-revenue/