Finland’s only offshore wind farm expansion delayed by low electricity prices and high costs

Plans to expand Finland’s sole operational offshore wind farm at Tahkoluoto have stalled due to unfavorable market conditions, with low electricity prices and high construction costs pushing back the €2 billion investment decision, reports Finnish public broadcaster Yle.

The project, led by Tahkoluoto Offshore, was set to expand the existing 42 MW wind farm off the coast of Pori. However, the current energy market—marked by relatively low power prices and elevated building costs—has forced delays, with no timeline for a final investment decision.

A key development occurred last week when Arenso, the engineering firm behind the expansion’s planning, was acquired by its own management team. The company had previously been owned by eight Finnish municipal energy firms, which still control Tahkoluoto Offshore and Suomen Hyötytuuli, the operators of the existing wind farm.

“The former owners felt they weren’t the right fit for a consultancy and design company like ours,” said Esa Holttinen, Arenso’s business director, who retains his role under the new ownership. The deal transfers Arenso’s offshore wind expertise—including foundation technology, bird radar systems, and research permits for Finland’s economic zone—to the new entity.

The ownership change does not affect Tahkoluoto Offshore, though the company has appointed Jaakko Kleemola as its new CEO, replacing Toni Sulameri, who now leads Arenso.

Despite the slowdown, long-term prospects for offshore wind in Finland appear stronger. Holttinen noted that rising electricity demand—driven in part by data centers and industrial growth—could improve market conditions within one to two years, making new power investments more viable.

“We’re well prepared to move forward with Tahkoluoto’s expansion if the market shifts favorably,” Holttinen said.