Government increases investment aid budget authority for new energy technology and large demonstration projects by EUR 100 million in 2022
Investment aid for new energy technology and large demonstration projects aims to accelerate transition to future energy solutions. Support is granted for example for hydrogen projects.
On 7 April 2022, the Ministerial Working Group on Preparedness outlined measures to ensure the production and availability of reasonably priced energy. The ministerial working group also set out measures to strengthen energy self-sufficiency and security of supply, to accelerate the green transition, and to temporarily reduce the fuel distribution obligation.
As part of this package, the ministerial working group decided to increase the budget authority for energy aid by a total of EUR 125 million for 2022. Of this sum, EUR 25 million will be allocated to investments under the battery strategy through a separate application round. A total of EUR 100 million will be allocated to large-scale demonstration projects on new energy technology, of which EUR 50 million has been earmarked for hydrogen projects and EUR 50 million for other large-scale demonstration projects. Taking into account the original budget authority, a total of EUR 153 million has thus been reserved for large demonstration projects in 2022.
Investment aid supports new technology solutions
Large-scale demonstration projects include energy aid projects with investment costs of at least EUR 5 million. The objective of the investment aid is to help achieve the national and EU-level targets set for future energy solutions by 2030.
The aim of the aid scheme is to promote new, nationally and internationally scalable solutions based on new energy technology.
The decisions to grant the aid are based on overall consideration and a comparison of the different projects. Special emphasis is placed on the novelty value of the technology included in the project. Other criteria include project feasibility, the amount of energy produced, cost-effectiveness and other impacts.
Aid may be granted to companies and other entities such as municipalities, and only to projects or parts of projects that would not be launched without the energy aid. A decision regarding the aid must be issued before project launch. Aid will not be granted to housing companies, residential properties or farms, or any projects related to these.
Applications for aid are to be submitted through Business Finland’s electronic system but they will be processed in the Ministry of Economic Affairs and Employment. Applications must be submitted no later than 31 August 2022.
Pekka Grönlund, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 064 815 (on 18–29 July 2022)
Tuula Savola, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 133 (from 1 August 2022)