Legal Alert – Changes to Feed-in Tariff Legislation
As of 30th June 2014, it is now possible to apply for a quota decision in order to ensure a share of the 2,500 MVA feed-in tariff cap for a wind farm under development.
The recent amendment of the Finnish Act on the Promotion of Electricity from Renewable Sources (1396/2010; the Feed-in tariff Act) enables a wind farm developer to ensure whether the wind farm will fit within the 2,500 MVA cap set out for the feed-in tariff prior to engaging in turbine delivery / construction agreements. Furthermore, the quota decision provides more comfort for possible investors/creditors.
The quota decision may be applied when the building permits for the wind farm have gained legal validity and the wind farm developer has entered into an agreement which enables the wind farm to be connected to the electricity grid. The quota decision is valid for two years and it is freely transferable. Until the Energy Authoritys data systems enable the handling of the quota decisions, each application is queued and handled on first in first out basis when the handling becomes technically possible.
Approximately 450 MVA have already been accepted into the feed-in tariff system and applications for another 250 MVA are expected by the end of 2014. The Energy Authority estimates that 560 MVA worth of wind projects have undergone the environmental impact assessment procedure and another 204 MVA are already at building permit phase. As more projects are completed and entered into the feed-in tariff system, the significance of the possibility of applying for a quota decision increases.