Google investment revives stalled Finnish offshore wind plans

Google’s announcement of billions of euros in investment in Finland has renewed interest in offshore wind projects in the Bothnian Sea, Yle reports. But weak market conditions continue to hold back plans for new wind farms.

A 40-turbine expansion of the Tahkoluoto offshore wind farm off Pori has been planned for years. The project, being developed by Tahkoluoto Offshore, is estimated to cost about two billion euros and is seeking outside investors. Talks are under way.

Esa Holttinen, business director at Arenso, which is preparing the project, said interest in offshore wind had risen noticeably after Google’s announcement. The project has been slowed by factors including electricity price and demand forecasts, as well as high construction costs.

Energy developer Eolus has also paused plans for two large offshore wind farms off Pori and Merikarvia, in Finland’s exclusive economic zone. The company says development is on hold because offshore wind legislation is unfinished and market conditions are challenging.

Eolus acting country manager Pentti Savolainen said Google’s investment could help projects move forward in the future, but too many obstacles remain. He cited electricity price forecasts and the planned tendering system for offshore wind areas, which he said was unrealistic and did not support the projects.

Anni Mikkonen, chief executive of Finnish Renewables, said offshore wind projects can advance in practice only when a reliable customer commits to buying their electricity for a set period. No such commitment has yet been made, she said, although interest in Finland has increased in recent months.