Subsidy I (Energy Aid)
Updated: 07.01.2019
Author: Karl Wikberg
The so-called "energy aid“ is a state grant for investments in RES production facilities and research projects related to it. Grants are available for projects, which promote the use or production of renewable energies, advance energy efficiency and reduce the environmental effects caused by energy production and use (§3, §5 Decree No. 1063/2012). At least 25% of the projects’ financing must come from non-governmental funds. Energy aid may be granted to companies, municipalities and other communities.
Eligible technologies
According to the Ministry of Economic Affairs and Employment, all technologies are eligible for grants. Grants are available for investments in renewable energy generation facilities and to conduct research related to different environmental and energy projects, such as energy audits, analysis of the new methods and development of services. (§3 Decree No. 1063/2012). The projects need to either promote the use or production of renewable energies; advance energy efficiency and energy saving or reduce the environmental effects caused by energy production and use (§5 Decree No. 1063/2012). Among other costs, the costs for preparation, administrative planning and employment are eligible for subsidies (§ 10 Decree No.1063/2012).
| Wind energy | Eligible. |
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| Solar energy | Eligible. |
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| Geothermal energy | Eligible. |
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| Biogas | Eligible. |
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| Hydro-power | Eligible. |
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| Biomass | Eligible. |
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Amount
The amount of subsidy depends on the aim of the project in question. The support allocated to investments in renewable energy production facilities can make up to 30% of the project’s overall cost, but can increase up to 40% in case the project involves the use of new technology. The support allocated to research can make up to 40% of the project’s total cost (§7 Decree No. 1063/2012). A company or entity receiving the subsidy has to finance at least 25% of the total project costs from non-state funding (§ 5 Decree No. 1063/2012).
Addressees
Entitled party. The entities entitled to subsidies are companies, municipalities and communities (“Yhteisö”). Support cannot be allocated to farms, housing corporations, residential properties and construction projects benefiting from state aid. If the project is carried out in cooperation between several companies, municipalities or communities, the support will be allocated to the entity, which has the role of the coordinator (§ 6 Decree No. 1063/2012). According to the Ministry of Economic Affairs and Employment, both private organisations and legal entities like strategic alliances, federations, associations and foundations are eligible.
Obligated party. Responsible body is Ministry of Economic Affairs and Employment or Tekes (Finnish Funding Agency for Innovation) (§ 4 Decree No. 1063/2012). The Ministry of Economic Affairs and Employment is responsible for investment projects where costs exceed €5,000,000 and for research projects with costs beyond €250,000. The Ministry equally deals with projects using new technologies. Other project applications are dealt by Tekes (Finnish Funding Agency for Innovation) (§ 4 Decree No. 1063/2012).
Procedure
Process flow | - Application for subsidy. Applications shall be submitted to Tekes (Finnish Funding Agency for Innovation) (§8 Decree No. 1063/2012).
- Selection. If the costs of the project exceed € 5,000,000 (in case of investments into renewable energy generation technologies) or € 250,000 (in case of research projects) or if the project aims to take up a new energy production technology, the selection is done by the Ministry of Economic Affairs and Employment (§ 4 Decree No. 1063/2012).
- Allocation of subsidies. Subsidies are awarded to the selected projects.
- Project implementation. According to the Ministry of Economic Affairs and Employment, applicants are informed of the decision concerning the subsidy and of the requirements for project implementation, which are a prerequisite for receiving energy aid.
- Payment of the subsidy. Support is paid after the start of the project based on the application and actual cost documents. The subsidy is paid either in one or several parts based on the decision allocating the support. Projects that include leasing or partial payments, can be paid in one part after the completion of the project (§ 12 Decree No. 1063/2012).
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Competent authority | The Competent Authority is the Ministry of Employment and the Economy. |
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Distribution of costs
| State | The cost of the subsidy is borne by the state (§ 1 Decree No. 1063/2012). |
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Finland
