Promotion of small scale electricity generation in Finland

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1 Promotion of small scale electricity generation in Finland Juho Korteniemi Ministry of employment and the economy Strategic programme for the cleantech business Helsinki,

2 Promotion of small scale electricity production in Finland Removing obstacles and developing opportunities Financing available Promoting international cleantech business

3 Removing obstacles and developing opportunities

4 Backround Smallscale electricity production offers new opportunities for technology businesses Several practical challenges for small scale electricity production notified during the last years Solutions for the challenges can not be based on decisions in one organisation, instead cooperation with different stakeholders like politicians, officials, companies, unions and others is needed Studies about net invoicing, market situation etc Working groups 2013, commercial working group and electricity networks working group Actions listed in Energy and climate stretegy for Finland 2013 TEM nominated a working group for promotion of small scale energy production 1/2014

5 TEM working group 1-11/2014 targets Assessment of small scale electricity potential in Finland and needs to promote it Assessment of existing financial incentives and realized actions to promote small scale electricity production EU regulation and incentices in certain countries (benchmark) Cleantech business potential Effects to energy markets, different stakeholders etc

6 Information available (1/3) How to become a producer?

7 Information available (2/3) I ve got left-over electricity, who buys it? National energy authority has electricity price comparison internetsites. Now also information about companies who buys electricity is available.

8 Information available (3/3) Small scale producer may have to pay 3 different taxes, VAT, electricity tax and tax based on income Electicity production below 50 kw is free from electricity tax. In this scale also VAT payments can be usually avoided. Some challenges with different situations about payments of electricity tax in kw scale. New guidelines can be found x.jsp Tax authorities are planning guidelines for income tax from electricity production.

9 Coherent practicies all around Finland (1/2) Permitting procedures vary in different municipalities although based in same law(s). Ministry of environment has started a project to study present practicies and opportunities to guide those if needed Lupapiste.fi,permitting services in digital format. Makes it easier to apply permits in municipalities which have joint already in the pilot phase

10 Coherent practicies all around Finland (2/2) Finnish energy industries has given guidelines for electricity companies about small scale electricity production e.g. Buying contract agreements Plants operating according to German guidelines (e.g. frequency) can be connected to grid in Finland

11 Other issues Usually biggest benefits when producing for own use. Optimization for own use can be profitable (e.g. phases for production and consumption) Urban planning, national and municipal construction orders Almost no statistics about small scale electricity production Zero energy buildings in the future Milja Aarni, Motiva Oy

12 Financing available

13 Financing available TEM energy support for companies and societies (energiatuki) Tax deduction for households (kotitalousvähennys) can be used for installations of energy systems Different supports for farms for hybrid energy solutions In addition: Small scale electricity production has less obligations for payments of VAT and energy tax

14 Energy support Energy support can be granted to investment or consulting projects, which 1) increase usage of renewable energy 2) promote energy efficiency and energy savings 3) Reduce environmental effects of energy production or usage In addition energy support is used to support usage of new technologies Energy support is only available for companies, municipalities and certain other societies

15 Energy support, shares of eligible costs / Project types Renewable energy Heating Heating boilers (wood fuels)10-15% Heat pumps, 15% Solar heat, 20% Energy efficiency, 15-25% Waste heat usage Energy efficiency in buildings others Electricity production Hydro power 15-20% Wind power 20-25% Landfill gas 15-20% Solar electricity, 30% Fuels, 20-30% Wood fuels Biogas Liquid biofuels for heating Traffic biofuels

16 Promoting international cleantech business

17 Strategic programme for the cleantech business Together with:

18 Government Strategy on Promoting Cleantech Business Strategy in english: _strategy_to_promote_cleantech_business_in_finland xhtml

19 Vision and Strategy Vision Finland is a global super power in cleantech business in 2020 Strategic targets The country brand attracts foreign investments The visibility of Finland in the international decision making will grow Finland strengthens its position in cleantech innovations

20 Numerical Targets Turnover* 25 B 50 B 75 % exports new cleantech jobs Energy and forest industry cleantech business to be added

21 Thank you!

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