New call for proposals on solar PV projects opens under EU Renewable Energy Financing Mechanism

Luxembourg is again funding renewable energy projects that will be implemented in other EU Member States. A total of EUR 52.4 million in funding is available through the EU Renewable Energy Financing Mechanism (RENEWFM).

Finland is taking part in the RENEWFM for the second time by inviting proposals from projects with a maximum capacity of 400 megawatts (MWp) of solar power. In addition to Finnish solar power projects, onshore wind projects in Estonia are competing for the funding.

Eligible projects will be selected through competitive tendering managed by the European Climate, Environment and Infrastructure Executive Agency (CINEA). The call for proposals under the RENEWFM opened on 30 July 2024 and will close on 4 March 2025.

The conditions that apply to the call for proposals include:

• The projects are to enter into operation by 4 March 2027.
• The ceiling price for grants is EUR 300,000 per MWp, and each project must have a capacity between 10 MWp and 80 MWp.
• A maximum of 20 per cent of the area needed for the project can be forest and agricultural land currently in production. This requirement does not apply to agri-PV projects, which allow the normal agricultural use of the land.
• The plant is expected to operate at full load for a minimum of 1,000 hours per year.
• Applicants must have sufficient competence and experience in comparable projects and financial resources to successfully implement the project. 
• The projects must be at a mature enough stage to participate in the call for proposals. Procedures for construction permits and grid connection permits must have been initiated at the time of submitting the proposal.

More detailed instructions and information on the RENEWFM are available on the CINEA website and on the European Commission’s EU Funding & Tenders Portal. CINEA will organise an information session on the call for proposals in the autumn. The Ministry of Economic Affairs and Employment will later provide details of the time and venue of the event.

Finland also participated in the previous competitive tendering in 2023

Finland took part in the RENEWFM already last year. The agreement on participation signed by Finland and Luxembourg in February 2023 was the first of its kind in the EU. Early this summer CINEA announced that seven solar park projects in Finland would receive EUR 27.5 million in funding provided by Luxembourg. 

Under the mechanism, 80 per cent of the renewable energy generated by the projects will be statistically attributed to the ‘contributing country’ (in this case Luxembourg) for a period of 15 years. Finland as a ‘hosting country’ will allow installations of the projects funded through the mechanism on its territory and benefit from the investments and energy generated. 

Inquiries:
Salla Palander, Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 049 (not available 12–30 August)
Outi Vilen, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 016