Biogas Feed-In Tariff Kicks Biower Onto A Growth Path
Finland recently introduced the national goal of increasing the share of renewable energy to 60 per cent of total energy consumption. That is okay but the most important fact I think, is that Finland will finally introduce a set of financial and tax incentives to promote the development and piloting of clean technologies. It is time to walk the talk. For Finnish startups, it is essential to have opportunities for pilot references in their home market to enable further growth abroad.
Finland's plan to introduce a biogas feed-in tariff is moving forward: the target price for the biogas feed-in tariff is €83.5 per MWh for power production and €50 per MWh when utilizing CHP (combined heat and power). According to the plan, this would only concern plants that produce more than 300 KVA of electricity. This supports fairly large plant sizes, which exceed the suggested parameters and provide adequate return on investments.
Wind Feed-In Tariff (Finally) In Finland
Governments are becoming more actively involved and the state backed interventions to meet EU 20-20-20 target are definitively needed. EU targets are technically available, but the current technology is still highly priced. Finland finally proposed two weeks ago a feed-in tariff for wind power of EUR 83.5/MWh. The guaranteed price for wind power is to be introduced in early 2010 for a period of 12 years. Governments target is to increase the production of wind power to 6 TWh, i.e. by almost 30 times by the year 2020 (current production level approximately 0.2 TWh). Implementing the wind feed-in tariffs in early 1980-1990’s countries like Denmark, Germany and Spain boosted a growth of the global wind power players like Vestas, Enercon and Gamesa. Finland has somehow a missed a train as financing the wind farms is becoming more to preserve of project finance and VC’s are now focusing more on advancements on power and turbine technologies.
