Operation of Renewable Energy Projects in Finland

Operating in the electricity and gas markets calls for procuring trading services, forecasting and fulfilling market participant obligations (such as balancing responsibility and REMIT requirements), including instances where a project runs merchant. Major direct marketers provide options to cover all or most of these aspects, but more bespoke solutions are also available.

Establishing a project’s business case and proceeding to final investment decision (FID) typically relies on long-term offtake agreements. Partner selection depends on project specifics and offtaker expectations. Power Purchase Agreements (PPAs) and Hydrogen Purchase Agreements (HPAs) in the renewables sector must meet stringent sustainability requirements aligning supply and demand both temporally and geographically. These agreements also introduce constraints on managing underproduction and non-compliant output. For conventional industries aiming to decarbonise a steady supply is crucial, but resource pooling and supplementation from the nuclear-heavy grid can accommodate fluctuations and save emissions.

For producing synthetic fuels, biofuels, and other renewables-based hydrocarbons, sourcing electricity and raw materials makes up the bulk of OPEX. While key consumables are expected to be available, their suitability varies by project. Viability depends on eligibility, unit price, logistics, and profile compatibility, influencing procurement strategy. With no dedicated marketplace for hydrogen or CO2, bilateral arrangements are common. RFNBO criteria are also pushing market participants towards direct PPAs for renewable electricity sourcing.

Value chains for the operational period are typically considered during preliminary planning and established early through site selection, project partnerships, and letters of intent. The integrated utilisation of side streams such as waste heat and carbon capture are highly site-specific, and optimal conditions, or “sweet spots”, are limited and subject to competition.

Partnerships with suppliers and existing developers often extend into the operational phase. It is common to arrange future maintenance of key installations and equipment as part of supply agreements. Some developers with operational expertise offer plant management services to investors entering the market upon project completion. Major utilities and energy producers with an established domestic presence, on the other hand, possess the necessary competencies in-house and outsource only specialised services.