EnergyTop Stories
GBO_Finland

Go Green with GBO: Finland’s renewable energy push

Following the Ukraine war, Finland became more independent in terms of energy

Finland has a large amount of solar potential despite its location. Although it does not have as much solar radiation as regions with more sunlight, the long summer days make up for the long winters.

Modern technology, a reliable infrastructure, land availability, predictable permitting procedures, and the nation’s increasing need for clean energy have all come together to create a special opportunity for solar development.

Finland has advanced solar technology rather significantly. For instance, Solnet Group has made significant investments in R&D, which have opened up opportunities for grid optimisation and energy storage. These developments are essential for stabilising energy consumption and improving grid performance.

The erratic price of energy from fossil fuels is driving an increase in utility-scale initiatives. Following the Ukraine war, Finland became more independent in terms of energy. With Russia as a neighbour, decision-makers saw that the energy sector was particularly vulnerable to disruption.

The success of solar energy is largely due to Finland’s citizens’ and government’s determination to become carbon-neutral by 2035. The government introduced tax breaks and financial aid for solar energy installations, among other regulations and incentives, to support renewable energy sources as soon as possible. Though solar power is growing, there is still room for more, and Finland isn’t, at least not yet, among the nations using solar power most frequently.

In 2014, when Solnet Group began putting PV projects into action, solar power was not as widely used and recognised in Finland as it is now. Additionally, the demand was absent.

Finland’s economy is expanding, and the electrification of industries like manufacturing and transportation is contributing to the country’s rising energy demand. By offering a decentralised energy source, solar power can improve grid stability in Finland. This is particularly useful in the event of extreme weather or unanticipated disruptions.

Landowners Versus Developers

The competition for land in Finland is one of the fascinating features of its solar development. To reserve space, developers frequently bargain with landowners in a race to find ideal locations for solar panels. This competitive environment is a reflection of the nation’s growing interest in solar projects.

Although Finland has a large amount of undeveloped territory, much of it is covered in forests, raising concerns that destroying land could lower the country’s ability to store carbon. All the same, a lot of solar farms could be installed next to residential lots, on roofs, or even on formerly peatlands that were cleared for farming.

The Finnish solar market has seen an influx of new companies, particularly in the consumer sector, in response to the growing demand for sustainable energy solutions. Seeking rapid profits on their investments, a lot of newcomers are trying to take advantage of the solar rush. But as Solnet has pointed out, that may not be the best course of action. We believe that forming long-term alliances is more important for maintaining the viability of businesses.

Although there is no denying Finland’s passion for solar, concerns remain about the feasibility of rapid, profit-driven development. The solar energy industry necessitates significant investment, and anticipating rapid returns might not be in line with industry realities. Solnet has seen cases of early failures among people who entered the market to make a profit.

The industry has grown significantly, with a focus mostly on ground-mounted and rooftop on-site photovoltaic (PV) installations. Still, there are some clouds in the solar forecast. The economic viability of solar installations has been impacted by fluctuations in power prices despite increased demand.

Due to higher interest rates, financing PV sites has become more expensive, which can reduce returns on investment, particularly when projects are funded through borrowing. Finland’s power market is still very erratic, which makes long-term planning and forecasting difficult.

Finland has developed solar technology admirably, but the government has chosen to stop funding solar projects. Instead, funding will go toward initiatives involving hydrogen. The government has to think about increasing the financial incentives for solar installation rather than eliminating subsidies, as this would make them more available to a wider range of companies and households.

Since photovoltaic will be the main engine of the green transition, industrial support is still essential for the uptake of solar energy. Feed-in tariffs, subsidies, and tax credits are a few possible forms of incentives.

Timelines would be accelerated and administrative burdens would be decreased if the regulatory procedure for solar projects were further streamlined and streamlined. The implementation of equitable and appealing net metering laws could stimulate a larger uptake of solar power by allowing users to sell surplus electricity back to the grid at competitive rates.

The government has also thought of imposing a cap on electricity prices, but if it is set too low, it will eliminate the incentive for people to sell their power to the grid, which has helped to stabilise the market.

To guarantee that all of the member states of the European Union have a uniform approach to clean energy, Finland should work with European Union legislators to standardise renewable energy targets. This might support European solar and make cross-border energy trading easier. The Finnish government should take into account more immediate goals in addition to long-term planning to encourage the development of solar energy.

True Potential

Despite the difficulties, Finnish solar has seen significant results. Being a market leader in the United States for commercial installations, Solnet has had numerous opportunities. Solar energy projects offer a compelling return on investment and provide consumers with much-needed consistency in their energy bills. Together with the Finnish investment business H.G. Paloheimo, Solnet has begun designing the largest solar park in southern Finland. There are plans to build huge solar parks in the area, with a total of 140 MWp of solar power projected for generation.

The potential investment value for the site is 100 million euros (USD 109 million), and a partnership model will be used to carry out the project. The project includes getting the solar parks ready for development, with Solnet Group spearheading the process.

This strategy guarantees funding for the solar parks as well as future electricity consumers for the energy generated. Additionally, the parties have decided to explore the possibility of utilising innovative technologies for electric grid balancing. Future developments are taking into consideration more energy buyers and investors.

Related posts

YouTube Premium introduces new features

GBO Correspondent

SFC’s plans to regulate crypto exchanges leads to bitcoin plunge

GBO Correspondent

Saudi Vision 2030: When ambition turns into reality

GBO Correspondent